Thursday, May 16, 2013

Financial Security without Long Term Debt

In the current economy, there are few financial solutions to manage the financial needs of persons over sixty years of age. When medical and other expenses related to age are presented, they may at times pose a serious challenge to finance. Finance should not stand in the way of retirement.

Life settlement products offer an exceptional opportunity to create immediate financial security without the stress of long term debt sale. With
life settlement conversion, life insurance policies are sold to a third party in exchange for a lump sum of cash. This is distinct to loans on the value of a life insurance or surrender of the policy for cash disbursement.

Life settlement asset conversion is an instrument that enables insured to pay existing obligations without future liability to debt. Life settlement programs may follow traditional methods of creating value in indemnity policies such as discontinuation of premium payments and enactment of ‘paid up’ options, freeing up existing cash values on life insurance policies.

Such changes may also afford insured a lower death benefit which translates into lower premiums. When the new policy owner and beneficiary of a life settlement takes over premium payments on an insurance plan, death proceeds are part of the scope of benefit.

Access to the future value of current assets can transform a financial situation for a client in need of immediate cash flow. Reasons to consider life settlement over life insurance include a number of retirement related expenses: credit woes, family, finances, health problems, health insurance or uninsured treatments not covered in the United States, illness, income, mental incompetence to manage debt installments or property devaluation or loss.

When a life insurance policy is sold to a third party institutional investment group, the transaction alleviates the original policyholder of any present or future liabilities, as well as establish designated payment amounts for structured settlements and annuities in addition to cash sale. Funds from the sale may also offset retirement account asset losses resultant from market downturn. Unlike secondary or traditional equity market transactions, conversion is covered without delayed terms so clients can get their life back on track.

Learn about how to convert life insurance policies to life settlement. Life settlement companies offer more value to the most vulnerable in their time of need.

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