For many seniors, life insurance policies have accumulated cash value over the years, often overlooked and forgotten. Abacus Life sheds light on this often-untapped resource. A life settlement can provide a lump sum of cash in exchange for the policy, and this can be a game-changer when preparing for retirement.
Here are some reasons why you might consider selling your life insurance policy:
Supplemental Income for Retirement: Retirement costs vary, but ensuring a comfortable retirement often requires a substantial nest egg. Selling a life insurance policy can provide additional funds for traveling, purchasing a new home, or enhancing one’s retirement lifestyle.
Long-Term Care Costs: The increasing costs of long-term care, particularly in assisted living facilities, can be a major concern for seniors. Life settlements can provide the necessary financial assistance to afford comfortable housing care.
Medical Expenses: When faced with significant medical expenses, individuals may consider selling their life insurance policy to cover the costs. Whether it’s funding assisted living, paying for cancer treatments, or covering other healthcare-related expenses, a life settlement can provide the necessary funds.
Reinvestment Opportunities: Seniors may want to access the equity they’ve built in their life insurance policy to take advantage of better opportunities. This might include investing in a business, purchasing a new home, paying off debts or tax liabilities, acquiring an income-generating annuity, or exploring other financial opportunities that align with their current circumstances.
Changed Life Circumstances: As life progresses, elders may find that they no longer need a life insurance policy or that the policy’s benefits are no longer necessary. Changes such as divorce, retirement, the absence of an estate tax burden, or beneficiaries no longer requiring the policy benefits can prompt the decision to sell.
What Types of Life Insurance Policies Qualify to Be Sold?
Abacus Life recognizes that almost all types of life insurance policies can qualify to be sold through a life settlement. While some policy types, such as universal life or other permanent policies, may be easier to qualify than others, all policies will be considered. This also includes whole and term life insurance policies that require more qualifications to be sold.
To get started with the process of selling your life insurance policy, you’ll need to determine if you meet certain minimum qualifying factors, including owning a policy with a $100,000 or more death benefit. Policies generally qualify if you are over the age of 70, and a decline in health from when the policy was issued may increase your chances of qualifying. Keep in mind that each life settlement case is unique, so these factors should be considered as general guidelines.
At Abacus Life, we are committed to guiding you through the entire process, ensuring you have a clear understanding of your options. From policy valuations and underwriting to cost and potential returns, we aim to provide you with the information needed to make the right decision for you and your family’s future.
If you have any questions about qualification, fill out our Policy Value Calculator or speak to an Abacus representative at 800-561-4148. We are happy to discuss all the options with you!