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Life Insurance Settlement
By Robert Lawrence
Why Buy Life Insurance?
Life insurance is generally offered as part of a benefits package with employment. For the most part, however, these policies are rather small, usually in the ten thousand dollar range. People buy life insurance policies so that their families will not have to bear financial burden when a loved one passes on.
There is another reason to buy life insurance, however, and it is the life insurance settlement. Your life insurance policy can be settled for a large sum before the end of your lifetime, though many people are not aware of this. Others buy life insurance specifically with this reasoning in mind.
Purchasing a Life Insurance Policy
Though it may sound strange, it's actually a good idea to buy life insurance while the policyholder is still in good health. Rates are usually cheaper when this is the case, which makes buying a life insurance policy a whole lot easier. Also, rates are less expensive if you buy life insurance while still young. If you're young and in good health, it's actually the best time of your life to purchase a life insurance policy – as strange as that may sound.
Don't be afraid to do your own shopping around to find the best rates, and the best life insurance settlement. Comparison shopping is the way to make sure you get the best life insurance policy, and life insurance settlement, possible. Don't rely on your employer to give you all the life insurance coverage you need. Generally, life insurance policies and life insurance settlements offered as part of a benefits package will not have good payoffs.
The Life Insurance Settlement
There are many reasons that you may want to settle your life insurance policy. Sometimes, a life insurance settlement is the best thing you can do for your family. For instance, when the policyholder has reached the age of seventy and there is a need for a new life insurance policy or long-term care, your best option may be a life insurance settlement. A change in health status, estate tax charge, or when the policy has outlived the beneficiaries may all be reasons to consider a life insurance settlement, as well.
A large factor in the life insurance settlement is the need for liquidation of assets. This may be due to bankruptcy or other financial reasons, or simply that the policy holder would like to acquire the sum of the life insurance settlement early. Your reasons for settling your life insurance policy are your own, and if you feel the need for a settlement then you should pursue one.
Be sure to discuss your life insurance settlement options with your insurance company. If needed, have a new life insurance policy in place before going forward with your life insurance settlement. There is no reason you cannot have two or more life insurance policies at the same time.
A life insurance settlement can allow you to enjoy some of the benefits of your life insurance policy, and be a good source of income when long-term care or extra income is needed. Be sure to discuss the exact amount that you will receive from your life insurance settlement with your insurance company, and find out the payment scale and time frame for receiving your settlement. When you agree on a life insurance settlement, the paperwork that you sign should include all of this information. Be sure to look over any paperwork very carefully before signing, because you can never be too careful with insurance companies.
About the Author
Robert co-founded Insurance4USA.com, an insurance quote shopping service - http://www.insurance4usa.com, in 1999. He has been a licensed insurance agent in New York State since 1990.
Article Source: http://www.simplysearch4it.com/article/32080.html
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