Don’t Cash in Your Life Insurance Policy, Settle It
If you are a senior citizen, with a life insurance policy, chances are you are finding it difficult to pay the premiums on the insurance. And you may also not need it any longer if you don’t have any dependents. One way you can get rid of it is by cashing in on your policy. There is another, lesser-known method — find a reputable life settlement brokerage firm to fetch you a buyer for your policy.
This method will give you up to five times or more than the cash value of your policy. Of course, the buyer will reap the larger financial benefit at the time of that person’s passing. But you will not be left high and dry. You will get a lump sum payment for your policy, which will be substantially higher than the policy’s current cash surrender value. There are a few conditions though: that you should be 65 years or older and your policy must have a death benefit of at least $250,000.
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September 28th, 2006 at 1:58 pm
A friend works for a corporation that gives as a benift life insurance (equql to one years salary). He recently found out they had borrowed near the total cash value to balance their books for the year. His wife is the benificary. They told him since they bought it they could borrow or cash it in at any time they choose.
I contend this is a tax free item in lieu of hourly salary and as soon as they acceept his designation of benificariy
they have passed ownership. I realize there may be differences in states . Incidentially he is not a union member What are your thoughts?