Subscribe to this Blog

Blog Archive

Subscribe Via Email

Enter your email address:

Monday, February 12, 2007

Cashing Out on Life Insurance before You Cash Out on Life

An important message from our sponsors . . .

You can't take it with you is a truism in life that we will only completely learn after we go to the grave.  Many people take out life insurance policies for very sound reasons.  Covering death expenses, providing for loved ones or family, covering the loss of income if we perish, or even providing for the expenses of our estate after death.

Often times people bulk up on life insurance in their early years when the rates are cheaper.  They are growing families and starting to hit the highest earning years of their lives.  They purchase large policies to cover all of the unknowns in life. 

  • Who will take care of my wife and kids if I die?
  • Who will pay the mortgage or property taxes or Estate Taxes?
  • Who will take care of my parents?

As they make it past this season of life and move into retirement, their needs change.  Often times they do not have as many of risks to cover.  Their kids are grown and taking care of themselves.  Their parents may no longer be living.  The house is paid for or close to paid for.  The only concerns are the certainties in life, death and taxes.

Death and Taxes do not necessarily require an insurance policy of hundreds of thousands of dollars.  Similarly, retirees on a fixed income may need to compliment their retirement.

So the natural choice is to rebalance their investments and possibly consider decreasing their life insurance policy.  Your insurance agent can not give you back much of your value.  Surrender values are low and so its not worth the trouble.

Solution through Life Settlements

Our Sponsor provides Life/Viatical Settlements for people. They can help clients sell their insurance policies to investment bankers and bring in a market rate for the life insurance policy as opposed to a surrender value. The house can be paid off with the balance. A smaller more practical anuity can be established for the taxes. This just leaves death lurking in the wings, but at least you can get out there and enjoy the years to come. With surplus money in the bank, you might even be able to live healthier or move to a warmer climate or near to children and grand children and cheat death a few months and years.