Many elderly Americans discover that their personal or financial circumstances have changed over the years. The original reason for buying a life insurance policy no longer exist. Being free from the financial burden of paying life premiums, while receiving a lump sum payment, may now be a better choice.
Do You Own An Important Asset That Has Been Hidden From View?
How A Policy Might Be Sold For Cash
John is a seventyyear-old who owns a $350,000 life insurance policy. Like everyone else who purchases life insurance, John had a good reason for taking out his policy. In his case, he wanted to provide a source of cash to his business if he should die prematurely. This very popular type of life insurance is known as ‘key man insurance.’ But look at what happened. John didn’t die prematurely. In fact, he retired and the business was taken over by his children. John now looks at his life insurance policy in a different light. He views it now as a financial burden that’s taking up money he’d rather be able to spend on enhancing his current lifestyle. John could give the policy back to his insurance company for its cash value of $35,000, or he could choose to pay no more premiums and let the policy keep going until it lapses. Or he could do something else. He could seize upon an opportunity to sell his policy in the secondary marketplace. Well, that’s precisely what he did.