You may view your life insurance policy as a necessary evil. For years, you have been making your payments relying on your policy’s value to pay for your final bills and support your loved ones after you are gone, but have you considered the value that your life policy holds while you are still alive?
Most policy owners look at their coverage as an asset. A permanent life policy has an investment aspect that allows policy owners to increase the value of their payout over time. The advantage comes when you accumulate enough value that you can borrow against your policy before you die.
With over 70 million Baby Boomers moving through their retirement years, many people are looking for ways to pay for their golden years and special care that may become essential. Let’s take a closer look at a few of the ways you can use your life insurance before you die, like selling your policy to Windsor Life Settlements.
Use Your Cash Value
Your permanent life policy has been accumulating cash value for years thanks to its investment component. Permanent policies can be borrowed from as a source of income for any reason. Although term policies tend to have lower premiums, your benefits will only be paid out after your death. There are several ways that you can tap into the cash value of your permanent life insurance policy.
Sell Your Policy
If you need to access your policy coverage before death to pay for medical bills or senior care, you can sell your policy to a secondary investor. You will be able to receive a lump sum or annuity payments from your policy. Your payout amount is generally a more considerable amount than your policy’s cash value but smaller than your final payout amount. The purchaser will take over the payments for the policy and become the final settlement beneficiary.
If you meet specific requirements, you may qualify to receive up to 50% of your policy payout prior to your death. This benefit will allow you to get the money you need without draining your policy of any final death settlements. You can apply for several different kinds of benefits.