Individuals traditionally purchase life insurance policies to ensure their loved ones have the means to look after funeral expenses and other costs that may incur after their passing. The way that life insurance policies can be used has changed. You don’t need to leave your money in an insurance policy that pays out after your death. You may reach a point where your beneficiaries are no longer dependent or you’ve accrued expenses because of medical needs. In situations like this, you may decide you would benefit from selling your life insurance policy to a viatical settlement company. Selling your policy offers the opportunity for you to use the money for your current needs. Here are 5 ways you can take advantage of the money from selling your policy now.
One reason that you may decide to cash in your life insurance policy is to handle unexpected expenses, such as those incurred because of medical expenses. You may be in an accident or develop an illness that requires long-term treatment. Using money from the sale of your life insurance policy can offset the costs of things such as physical therapy, job retraining and prescriptions. Some illnesses may result in additional expenses. You may even need nursing care. Because even the best health insurance plans don’t cover all the potential costs of some treatments you may find that selling your life insurance policy is an ideal way to cover the unexpected costs.
As you age, you may find that you need extra help with day to day activities or personal care. In some cases, individuals opt to live at home and have personal care aides visit regularly to assist with daily needs. You may decide that you would prefer the companionship and convenience of moving to an assisted living community and selling your life insurance policy is a way to cover the expenses of moving to this type of facility. Assisted living communities are a good option for individuals who have lost a spouse and would like companionship. They also remove the burden of care from family members who may not have space in their home.
Setting up a scholarship fund
Individuals who have already taken care of their after-death expenses may wish to put the money from a life insurance policy to good use. With as little as $20,000, you can set up a scholarship endowment in your name. This is a nice way to be remembered by your community. It’s also a great way to invest in the education of future generations. The process is also simple, because colleges or organizations can help with all the paperwork and walk you through all the steps required to establish the scholarship. You may also decide you want to leave money for your grandchildren’s education, which can be done by establishing a trust fund.
Bucket list expenses
It’s normal to have a list of things you wish to do during your lifetime. Selling your life insurance policy is a way of acquiring the funds needed to do some of those “bucket list” items. Many people hope to travel. Whether you wish to go on a cruise, see the Great Barrier Reef or visit the Grand Canyon, selling your insurance policy is a way of securing the funds without acquiring debt. There are also many other things you may wish to do, including skydiving, going for a hot air balloon ride or taking your grandchildren to Disney World.
With or without a life insurance policy, it can be a sound fiscal decision to pay for your funeral costs in advance. This offsets cost increases that incur over time and ensures that if your spouse or children will not be forced to cover the costs of your funeral. Planning your own funeral and handling the expenses also gives you an opportunity to ensure that you have the kind of funeral you desire. It can be difficult to talk about plans for your funeral, even with loved ones, so making the arrangements yourself eliminates the need for difficult conversations. In your passing, you can leave a final gift to your loved ones by ensuring that they don’t have to make decisions about arrangements after your passing.