It’s a very wise move to have a life insurance policy. If you pass away, your grieving loved ones won’t be left with an unneeded financial burden. Although your financial situation can also change, making the duty of covering insurance premiums a little harder. In any case, when an insurance company has to pay out, trouble can arise as the company, after all, always has a vested interest in withholding payment even if they are obligated to pay your loved ones. The relationship between an insurance policyholder and an insurance company can really be a David-Versus-Goliath situation. Don’t be disheartened though, because you still have options.
Some Basics About Life Insurance
When buying a life insurance policy, you will have to choose a beneficiary. In most policies, your beneficiary will be your spouse or one of your children. Death benefits aren’t paid straight away, the beneficiary has to file a claim with the life insurance company. Even if all the paperwork is in order, you can still certainly expect some delays. Such delays can happen because ideally, the benefits are paid out within 30-60 days of the life insurance claim being filed. That being said, delays can happen. If the insured dies within two years of the issuance of the policy, the insurance company can withhold payment by invoking the contestability clause, which is usually part of any life insurance contract. Also, if the deceased was the victim of a homicide, the life insurance company will withhold payment until the beneficiary has been proven to have had no connection with the murder in question.
In the case of suicide, again, the life insurance companies are within the right of having to refuse such payment. By knowing these conditions, you can avoid any unpleasant surprises down the road. You should also be aware that life insurance companies aren’t your friend and definitely will do anything to avoid paying out, so selling your policy may be a good idea.
Finding a Settlement Broker
After your passing, an extended legal fight is the last thing you want your family to get involved in as grieving relatives. Be that as it may, the worst can sometimes come to pass and the life insurance company can hold out on payment. To avoid dreadful legal troubles down the road or if you for any reason don’t want to remain in your existing life insurance construct, you can always capitalize on that by opting for a life settlement broker. These companies basically deal with buying and selling existing life insurance policies. Insurance premiums are rising year by year, which makes life-insurance ever less affordable. You are by no means obliged to stay in an unfavorable financial construct. Don’t listen to insurance salespeople who have a vested interest in keeping you locked in an insurance policy. Selling your policy to the right buyer rather than holding out could just be the thing for you.
Selling Your Insurance Policy can Give You Financial Security
One of the top concerns of seniors is financial security. You did not work so hard to have your final years beshadowed by the prospect of poverty and insecurity. You want to enjoy your golden years in peace, without having to worry constantly. A life insurance policy is a type of property and yes, it can be sold since 1911. When you sell a policy, the seller gets an amount that is more than the cash surrender value of the policy but less than the amount of the death benefit. Being relatively old and frail helps in particular because third-party buyers don’t want to risk money on people who will live for decades to come. Usually, you must be 65 years old or older to qualify as a valid seller, and on average, life insurance policy sellers are 75 years or older. While state rules differ, it’s generally the case that a seller needs to be either chronically or terminally ill, but be sure to do your research and find out the exact rules are in your state. By selling your policy to the right buyer, a broker will allow you to enjoy your final years in peace without having to worry round the clock about expensive insurance premiums that just keep on increasing. Financial security is largely important if you are ill and in need of constant medical care.
Making the switch and selling your policy could just be the right choice to make. By finding a quality broker, you will be on your way to enjoying your final years in peace. Insurance policies can be bought and sold. With the right broker, you can have financial security and peace of mind, without having to continue paying expensive monthly insurance fees and premiums.