Life insurance policy for cash
As we go into the new year of 2014, many people are strapped for cash. They start looking at all the possible places they can scrape up money. Many people start asking for refunds on things they purchased to see how much cash they can gather. Some people start selling off assets. You can even sell a life insurance policy. It’s called a life settlement. A Life Settlement is the sale of a life insurance policy to a third party in exchange for a cash settlement in excess of the policy’s cash surrender value, even if there is none. This is also called and insurance settlement or senior settlement. This is an innovative wealth and estate planning too. It takes away the burden of expensive insurance premium payments and provides a lump sum cash settlement. This allows policyholders to get cash out of their life insurance policy, in an amount in excess of the policy’s cash value (if any), while they are still alive.
Life Insurance settlement or Life settlement presents a unique opportunity to the policyholder. It is the ability to extract the maximum possible value from an existing life insurance policy and utilize those funds for other financial needs.
Clients ask if there are any restrictions on what the cash payment can be used for. There are no restrictions whatsoever on what the cash payment can be used for. They can use the money to purchase new insurance, travel the world, start a business, buy a property or fulfill their dreams. It’s their money for their own personal use.
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