Using Life Insurance to Pay for Long-Term Care

If you’re past the age of retirement, it can be difficult to come up with extra cash to pay for emergency expenses. For eligible life insurance policyholders, a life settlement can serve as a quick and easy way to earn immediate cash. So, if you need extra income to pay for long-term care, how can you sell your life insurance policy for extra income?

What is a life settlement?

Life insurance policy owners decide to sell their life insurance policies for a range of personal reasons. Some common reasons include expensive premiums and paying for long-term care.

When a policyholder sells a life insurance policy, a life settlement company buys the policy in return for a lump-sum payment. The life settlement company then continues to pay the premiums to keep the policy in place. In other words, the policyholder receives cash upfront for their life insurance policy. Meanwhile, the life settlement company receives the policy’s death benefit after the insured has passed.

Why should I sell my life insurance policy?

Selling your life insurance policy is a major decision. It’s important to keep in mind that potential financial implications are related to selling a life insurance policy, such as the risk of not being able to buy another policy in the future. Therefore, policyholders should approach the decision with caution. 

Depending on your financial situation, you may choose to sell your life insurance policy to pay for long-term care in an assisted living community. If you were recently diagnosed with a life-threatening illness, selling your life insurance policy can serve as a source of income to pay for high-quality medical treatment. Other policyholders choose to sell their life insurance for extra retirement income, to take a vacation, or to pay off past debts.

Policyholders opt to sell their life insurance policies when their children become independent. After your children start earning their own income, your life insurance policy is no longer required to support them. Selling your life insurance policy also eliminates the financial burden of costly premiums.

Do I qualify for a life settlement?

If you want to use your life insurance to pay for long-term care, start by checking your eligibility. Policyholders must be 70 years or older and in good health to be eligible for a life settlement offer. The policy must also be valued at $100,000 or more. Individuals with life-threatening illnesses, including cancer and ALS, may be eligible for a viatical settlement if their policy is valued at $100,000 or more.

How can I sell my life insurance policy?

Selling your life insurance policy to pay for long-term care is a quick and easy process. Companies like Sell My Life Insurance, connect clients to top life settlement companies, ensuring clients receive the best life settlement offer for their financial situation. 

With Sell My Life Insurance, you won’t have to worry about researching and contacting third party settlement companies. This saves you time in the process and helps you to receive a life settlement offer quickly. After you accept the life settlement offer, you will sign a contract with the life settlement company and receive a lump-sum payment for your life insurance policy.

In most cases, the face value of the policy, as well as the premiums you now pay, determine your life settlement offer. Generally, the higher the value of your life insurance coverage and the lower your premiums are, the more you can expect in a life settlement offer. All in all, if you need extra cash to pay for long-term treatment, selling your life insurance policy can serve as a lucrative source of income.