Instead of cancelling your life insurance policy, it might be wiser for you to choose life settlement instead. This is especially suitable if you are not qualified to receive death benefits sooner than the original plan. A good example is a case where a terminally ill individual needs money in which he or she can go through a viatical settlement or life settlement.
Selling or monetizing your life insurance to life settlement entails you, the policyholder to sell your life insurance to a third party investor. But the payment to you is usually about 20-30% of its face value. The buyer who will be the new policy owner will pay the premiums. When the original owner dies, the buyer will receive the overall value of the insurance policy as long as all the premiums were paid. Usually, this type of monetization is chosen by employers who provide their employers with life insurance coverage for their employees. They utilize life settlement when their employee retires or resigns from the company. This way, the money they paid for their premiums will revert back to them.
Accelerated Death Benefits
Some people may reach a particular age and no longer feel the need for a life insurance policy. They may consider cancelling the said coverage to save money that would otherwise go to premiums. However, the option of cancelling a policy may render any premium payments made up to that point useless, making it important for the cash-strapped policy owner to look at the alternative: accelerated death benefits.
To find out if you are qualified to take the accelerated death benefits, read through the terms of your insurance policy contract. If you are eligible to get these benefits, you can already enjoy a part of your benefits while you are still living. In addition, you will also be free from paying the remaining premiums plus you will receive the extra money. Generally, you might be able to cash in about 50 to 80% of the insurance policy's face value.
You can make money off your life insurance policy in two ways. One is by obtaining life settlements and the other is by taking death benefits while you still live from Life Partners Corporate.
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