Old Bay Insurance Agency Blog
Life settlements are on the rise because the number of individuals who have changed their long-term need for insurance is increasing. Read this post to know more about it.
What is Life Insurance Settlement?
The term life settlement is the process of selling an existing individual’s life insurance plan to another interested person. Moreover, the policyholder can sell his insurance policy with the price of above the cash surrender value. But, the cost that the buyer will pay should not be more than the net death benefit.
Life insurance plan is the protection that guarantees the death proceeds value. For instance, if you have a universal life insurance policy, it provides you with cash value build-up, which can grow on a tax-deferred basis. So, why will you sell your life insurance policy? Here are some of the life situations that will make you consider life insurance settlement:
To Decrease Insurance Coverage
Some people who were used to a prolonged period of low rates are experiencing difficulty in dealing with increased interest rates. Due to lack of reserves to continue paying the premium, others let their policies lapse. In this scenario, what you can do is sell your universal life insurance, and get alternative protection with less coverage that you can afford.
Senior Citizens May No Longer Need Additional Coverage
When you become a retired citizen and have a steady source of retirement benefits, for example — from pensions and investments, you might no longer worry about the future. As a senior parent, when you know that your children have a stable job and will not experience financial loss when you die, then you can opt for a life insurance settlement.
Change in Personal Financial Situation
You have been living a luxurious life because you have the best role in a company that most career seekers aspire. But, your lifestyle has dramatically changed due to an unexpected mishap. Change in personal financial situation is the common reason why people sell their policy. Another scenario that will make you decide to pursue insurance settlement is when you need to pay off your mortgage or other outstanding debt.
One More Thing Before You Go
It’s difficult to predict the future. Providing convenience to your family is what will matter most, so get the essential life insurance plan from a reputable insurer.
At Old Bay Insurance Agency, Inc., we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (410) 777-5390 or Click Here to request a free quote.