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A life settlement can be the key to financial freedom for many seniors. A life settlement, by definition, is the sale of a life insurance policy to a third party, like Abacus Life, in exchange for a cash lump-sum. Typically performed by individuals aged 65 and older, a life settlement will always exceed the cash surrender value of your policy, but it will always be lower than the death benefit of your policy. You can learn more about this option by referring to our Learning Center. To see if you qualify for a life settlement, check out our Life Settlement Calculator.
Life settlements are dated back to 1911, in a Supreme Court ruling in the case of Grigsby vs. Russell, that established life insurance contracts as salable assets. R.L. Russell was the executor of John Burchard’s estate. Burchard had passed away about a year after an operation. However, in order to afford the operation, Burchard had sold his life insurance policy to Dr. Grigsby in exchange for the operation, plus $100. When the insurance company paid Dr. Grigsby instead of the estate, Russell sued to have the proceeds paid to the estate. The case went all the way to the Supreme Court, and the court affirmed that Burchard had the legal right to sell his policy and Grigsby had the right to purchase it, inevitably establishing it as a salable asset.
In the late 1980s, life insurance options were primarily seen in the form of viaticals, which involves the sale of a policy by a person facing terminal illness. At that time, most individuals who sold their policies were facing either cancer or HIV/Aids. Since then, the life settlement space has evolved into an established, well-regulated industry with licensing requirements per state. This viable option for your life insurance policy is often overlooked, due to the lack of awareness for this particular financial option. Abacus Life works to educate seniors on all of their financial options, so they can make the best decisions for their families.
Many times, seniors inquire about life settlements when seeking financial security in times of hardship. Whether the policyowner has fallen behind in payments, or experienced a lifestyle change affecting their personal finances, a life settlement can offer them a chance to financially recover. In some cases, seniors may resort to getting a life settlement because their spouse has passed away, and their children or heirs are self-sufficient, so they choose to utilize the cash now. Investors sometimes choose the settlement route because of the added advantages that come along with the process. Life settlements offer attractive rates of return, safety and stability, and is considered to be a “win-win” investment. Seniors often receive as much as four times their cash surrender value, and can use this money as they please. Notable figures like Warren Buffett and Bill Gates have put billions into life settlements, because of the attractive advantages they offer.
Essentially, any expenses that need to be covered can be funded by the cash granted from a life settlement. Whether it be to purchase a retirement home, fund a grandchild’s college tuition, pay long-term care or healthcare costs, cover assisted living fees, purchase a vacation home, go on an extravagant retirement vacation, or simply halt remaining premium payments, a life settlement can provide you with a monetary solution. The life settlement industry is a very well-regulated industry, with strict guidelines per state. By choosing to conduct business with Abacus Life, you will not only be working with the #1 ranked life settlement firm for fast sales, but also a reputable company based on the principles of honesty and transparency.