Short Term Loans: Making Them Work

3 Things To Know About Life Settlements

Life insurance policies are a great way to ensure that your loved ones are provided for in the event of your untimely demise. While life insurance is something that can be invaluable in many situations, sometimes they are no longer necessary as time goes by. If your life insurance policy isn't as needed as it once was, there are options. Life settlements are where you sell your life insurance policy to a third party for an agreed upon sum. Here is what you should know about life settlements.

How They Work

The first thing that you should know is how life settlements work. With a life settlement transaction, a broker or a provider sells your existing life insurance policy to a third party for more than the cash surrender value from the insurance company but for less than the benefit value. On average a life insurance policy sells for between 20 and 25 percent of the policy's benefit amount. The new owner of the policy will then continue to pay the premiums and receive the full value of the policy after your death. Once the transaction is over with you may have to confirm with the new policy owner that you are still alive on a yearly basis.

Is It Right for You?

If you are considering a life settlement, you should carefully think through your decision. They can be a great option if you can no longer afford your premiums, need to cover unexpected expenses, or need to supplement your retirement income. Whether or not you qualify for a life settlement can vary depending on a variety of factors. If you are younger than 65, you may have trouble getting a life settlement. For most life settlements your life insurance policy needs to have a face value over $250,000.


When deciding whether or not a life settlement is for you, it's important to consider your finances. You will likely have to pay some taxes on the amount you receive from the life settlement. It can also be difficult to determine whether or not you are selling your policy for a fair price. The broker or provider who finds a buyer for your policy will also charge a commission fee. This fee can be up to 30 percent of your settlement amount. It's important to keep these things in mind before making a decision.

Life settlements are a great way to deal with an unwanted life insurance policy or a life insurance policy whose premiums you can no longer afford. When it comes to life settlements, it's important to fully understand how they work and whether or not they work for your needs. Cost is another thing to consider. You want to get a fair settlement and also factor in commission fees before making your decision. Contact a company, like Alternative Strategies Insurance Solutions, for more help.

About Me

Short Term Loans: Making Them Work

People warned me about taking out short-term loans, especially payday loans. What I found is that if I manage them responsibly, they come in very handy. On more than one occasion, these simple loans have helped me out of difficult situations. They took care of emergency car repairs, and provided the cash I needed to pay bills and avoid incurring late fees. I always repaid them on time, and the lender rewarded me by increasing the limit on how much I can borrow. If you are thinking of securing a payday loan, let me tell you what to look for in a lender. I'll also help you understand the commitment that you are assuming. With responsible use, I know you will find these loans as helpful for you as they've been for me.


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