5 Reasons to Ditch your Life Insurance Policy

Often times, death can be a hard topic to discuss. Nevertheless, having a plan in place to ensure that your loved ones are taken care of in the event of your passing is important. This is where the need for life insurance policies come in. However, as you get older the need or want to have life insurance can change for a variety of reasons. For those who are looking to get rid of their life insurance policy, a life settlement is a viable option as the benefits are often greater than other alternatives. A life settlement is the selling of a life insurance policy that provides individuals with an amount of money that is greater than the cash surrender value. Here are 5 reasons you might want to ditch your life insurance policy:

1. The policy is no longer needed. The main purpose of life insurance is to ensure that your family will be taken care of in the event of your passing. However, as you get older and your children become dependent adults, the need for this may diminish. Other instances such as a divorce or a change in estate may also be reasons why you no longer need a life insurance policy.

2. Stop Paying Premiums. Unless you purchased a fixed rate plan early in your life, chances are the premiums will be begin to increase as you get older. Furthermore the premium rate may become too much for you to handle once you enter retirement and rely on a fixed income. Rather than continuing to pay a premium that is unaffordable or just letting the policy a lapse, you can sell your life insurance policy. A life settlement takes away the burden of paying high premiums and also yields a lump sum of cash.

3. Overcome Financial Hardships. Once you are on a fixed income surprise expenses can be a disaster. Whether it is home repairs, medical bills, credit card debt, etc., financial hardships are stressful and can often be hard to recover from. The money that you acquire from selling your life insurance policy through a life settlement brokerage firm can be used any way you want.

4. Cover Increased Health Care Costs. As you age, your health care costs are likely to increase due to an increased risk of experiencing various health issues. These increased costs can burn a massive hole in your pocket and even make it hard to cover other living expenses. This is another instance where it may be beneficial to sell your life insurance policy. The lump sum of cash can help you cover the cost of increased health care rates and medical bills.

5. Add Money to your Retirement Fund. As you move into retirement you may decide that you want to explore the world, focus more time on your hobby or experience new things. Upon retirement, most Americans receive 65-70% of what their income was prior to retiring. This means that your income is reduced by at least 30% when you retire. Having to make such a huge adjustment can be quite the task. The funds that you receive through the selling of your life insurance policy can help supplement your income and allow you to continue living the lifestyle that you were accustomed to prior to retirement.

There are a number of reasons that your need for a life insurance policy may diminish. Allowing your policy to lapse or surrendering the policy to the insurance company are less favorable options when it comes to getting rid of a life insurance policy, as neither yield as many benefits as a life settlement. For more information on the life settlement process click here .