Who Is Eligible For A Life Settlement?

Life insurance settlements are great financial tools for senior citizens. In order to qualify for these settlements, however, you must meet certain criteria. For example, the most suitable candidate for a life settlement will ideally have a life expectancy of no more than 20 years. And of course, the value of an individual's life insurance policy must meet or exceed $50,000. These list only a couple requirements used to gauge eligibility for a life settlement.

Why do most insurance holders seek out life settlements? Typically, they fall into one of the following scenarios:

  • Their spouse has passed away.
  • A prized employee has left their business or firm.
  • They lost a valuable business partnership.
  • They have outlived their guaranteed number of insured years.

These aforementioned scenarios have several common factors. They all reflect a negative, financial dynamic or change. In other words, when financial circumstances have changed for a senior citizen with life insurance, they have no choice but to take up a life settlement. This, however, should not be perceived as a last resort, but rather, a solution.

Life settlements have innumerable benefits and they serve as indispensable assets that one can use for a variety of different purposes. Using this financial tool, you can exchange a policy for a cash settlement instead, obtaining the money you need for a variety of different life expenses. This course of action would certainly be understandable in the context of a changing financial situation. With the security of income from a spouse, key employee, or business partnership, life may become unsustainable.

Sometimes, life insurance payments can be cumbersome and virtually impossible to pay off. So, instead of living in a state of financial unrest, make the right decision. Sometimes, life insurance policies fail the expectations of their holders. But a life settlement can give you the security you need. Remember, if you have incurred a significant amount of debt, creditors or debt collectors may garnish this settlement.

A life settlement can help you cover medical expenses, bills, and much more. If you are over-insured, an insurance policy may not be necessary. Furthermore, if your children have reached a fairly mature age, they may be old enough to support themselves without this additional protection. Life insurance protects your loved ones from the astronomical costs of planning a funeral, and other death-related expenses. However, this protection is not necessary if your spouse has passed away, and your children are well into adulthood.

Related Article - How Do Life Settlements Work?

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