Financial Relief Through Life Settlements

If you’re considering cashing in your life insurance policy, a life settlement could provide you with a significant cash payout, often averaging between 5% and 25% of the policy’s face value, and as high at 60% or more in some cases.

Understanding Life Settlements

Life settlements are a powerful financial planning tool where you sell your life insurance policy to a third party in exchange for a lump sum payment. This payment is higher than the cash surrender value but less than the death benefit. Thousands of seniors have used life settlements to convert life insurance they no longer need into cash.

Types of Life Settlements

There are two main types of life settlements:

• Standard Life Settlements: These are generally for individuals over the age of 65 who have life insurance policies with a face value of at least $100,000.
• Viatical Settlements: These are for individuals diagnosed with a terminal illness. Viatical settlements often yield larger payouts compared to standard life settlements.

Case Study: Martin’s Experience

Consider Martin, an 86-year-old who no longer needed his universal life insurance policy after his wife passed away. Instead of allowing the policy to lapse with a small cash surrender value of $1,800, Martin contacted Lighthouse Life. After a straightforward policy evaluation, he sold his $200,000 policy for $101,000, saving him from rising premium costs and providing significant financial relief.

Four Steps to Cashing in Your Life Insurance Policy

1. See if You Qualify and Generate an Estimate: Fill out a simple online form to determine if you qualify for a life settlement and get a quick estimate. You’ll need to know your policy type and face value.
2. Complete a Phone Interview: Provide details about your policy, health, and lifestyle in a phone interview. The company will handle the rest, including contacting your insurance company for necessary documents.
3. Receive the Policy Appraisal and Offer: If you qualify, the company will make an offer, usually within a few days. This offer can provide financial peace of mind.
4. Receive Your Money: Upon accepting the offer, your dedicated life settlement expert will help you complete the required forms. The payment is managed through an escrow account and is released once the transaction is complete.

Alternative Ways to Generate Cash from Your Life Insurance

• Loans: You can take a loan against your policy, but it must be repaid, and there could be tax implications.
• Withdrawals: If your policy has accumulated cash value, you can withdraw money, but this may increase premiums and reduce the death benefit, with potential tax liability.
• Surrendering the Policy: This provides a payout based on the policy’s cash value, which would yield less than a life settlement, should you qualify.
• Letting the Policy Lapse: This yields no value, unlike a life settlement.

Why Life Settlements are Safe and Secure

Selling a life insurance policy for cash is a secure process if you work with a reputable life settlement company. In fact, life settlement transactions are among the safest and most secure financial transactions in both the insurance and financial services markets.

One reason is regulation.

Today, 90% of U.S. citizens live in states with laws and regulations that protect seniors and their loved ones when the seniors are selling their life insurance policies.

Among the consumer protections are requirements that life settlement companies be licensed with the insurance department of the state in which the policyowner lives. Life settlement companies must use approved forms, and they must provide the policyowner with extensive disclosures about policies and transactions involved, including a discussion of the alternatives to life settlements, and a review of the risks related to selling a policy.

In addition, life settlement companies are required to protect the privacy of policyowners and sellers.

Tips for Working with a Life Settlement Company

1. Ensure You Are Working With a Reputable Company: There are a lot of life settlement companies policyowners could choose to work with. Verify the one you select treats policyowners like you with the respect you deserve by reading consumer reviews (and complaints) on sites like BBB.org and Google.
2. Reputable Companies Disclose Fees and Commissions: Transparency about fees and commissions ensures you receive what is rightfully yours. Avoid companies that do not fully disclose these details.
3. Personal Information Protection: Confirm the company follows privacy and consumer protection laws to protect your personal information, including identity, finances, and health.

How Life Settlements Can Help Policyowners

Selling a life insurance policy can provide financial security and improve your overall quality of life.

1. Improve Your Lifestyle Post-Retirement: Provides the cash needed to live the lifestyle you want in retirement and eliminates premium payments.
2. Cover Medical Bills and Other Expenses: Offers financial relief for planned or unplanned expenses, with viatical settlements providing substantial payouts for medical expenses.
3. Remove the Burden of Premiums: Eliminates ongoing premium payments, freeing up finances.

Set Yourself Up for the Future: Explore a Life Settlement Today

If you’re considering a life settlement, fill out the eligibility form to see if you qualify. Lighthouse Life has extensive experience helping people achieve financial security through life settlements. Contact them for assistance and secure your future.