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Top 3 Reasons To Ditch Your Current Life Insurance Policy

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Are you or your parents nearing or at retirement age but have little to no money saved up? Did you know that you could sell your life insurance policy for more than its cash surrender value? If either you or your elderly parents are the owners of a life insurance policy, there may be people willing to buy that insurance policy from you. They would then pay the premiums and receive the benefits after the original policy holder passes on. Some reasons why these types of life settlements may be right for you include:

Extra cash: The amount of money that you can receive will depend on a variety of factors, such as the maturity of the policy and the age of the policy holder. The longer the policy has been paid for, the more money the settlement company may be willing to pay you. Whatever the amount, what will be offered for life settlements will typically be more than you'd get from the insurance company and less than the eventual death benefit. This can be a welcome amount of money when you're trying to buy a retirement home or otherwise need the money for something important. 

No more premiums: If money is tight, you may already be considering dropping the life insurance policy. Why not get extra money for something that you're already planning on doing anyway? Depending on the policy and how long you've been paying, just the absence of the premium payments every month may partially cover some necessary bills. This is in addition to whatever money the life settlements company is willing to pay you for your policy. Over the course of a year, this could be a significant amount of savings for either you or your elderly parents.

Buy another policy: Even though you may not have much money, you may be reluctant to give up on the security that a life insurance policy brings. However, it's possible that you or your parents will qualify for insurance policies that offer better benefits for your situation. But since it doesn't make much sense to pay for two insurance policies, you can sell the less desirable policy and only pay on the policy that you want. By selling the original policy, you'll be getting back at least some of the money that you've been paying to the insurance company for the past several years or possibly decades.

For more information, talk to a professional like Trust Life Settlements.