As we live our lives day by day, we encounter many new things; some of them are catastrophic and monumental, while others are minute and require little or no change. But not everything that happens is predictable; the deadly accident that leaves you widowed, an abrupt divorce that leaves you emotionally and sometimes financially distraught, or the chronic illness that leaves you bed-ridden indefinitely. It for these instances that we take measures to protect our futures and most importantly our families’ futures. We invest for the long term or buy a life insurance plan.
But as described above, life can often throw us a curveball, and even our precautions can get sideswiped on the road. A change in circumstance or money situation can call for desperate measures, and sometimes there might not be anyone there to help. Despite these facts there may be a helpful alternative when you find yourself in a compromising situation: a life settlement.
A life settlement is a business transaction in which you can sell your life insurance policy to a third-party investor. There are several circumstances that can lead someone to making such a decision. One example would be that the beneficiary on the policy dies. When this happens, the policy becomes useless. The insurance company may offer to buy the policy back from you, but it is usually at a very small price. In a life settlement, the third-party investor will usually offer more money for the purchase of the policy. Simultaneously, they will take over the monthly payments and collect on the policy once you die. In a sense, they become the new beneficiary.
There are other situations in which it may behoove you to settle a life insurance policy. The recent bearish economy has seen many people lose their jobs in the past few months. A tight financial situation might force someone to make changes to their monthly budget. Though it might not be desirable, many people decide that it is necessary to stop making the payments on their life insurance policy. Instead of letting the policy fizzle and lapse into nothing, marking a loss of several thousands of dollars invested over many years, you can settle the policy for a lump some amount. Not only will this mean less money is lost, but it may help you financially in moments where things are most difficult.
For more information on how you can benefit from a life settlement consult http://www.lifesettlementsandyou.com