Life Insurance Settlements
Many retirees continue to pay for life insurance policies that may no longer serve their needs or fit their budget. Instead of letting those policies lapse or surrendering them for minimal value, a life insurance settlement offers another way forward.
Matador Insurance provides an educational, client-first process that helps you unlock the hidden worth of your policy while supporting long-term financial goals.
What Is A Life Insurance Settlement?
A life insurance settlement allows policyholders to sell their current policy to a third-party buyer for an immediate cash payout.
Policyholders often receive a higher return than the insurer’s cash surrender value, resulting in a better financial result. After the sale, the buyer becomes the policy owner, taking responsibility for all future premiums and beneficiary rights.
Settlements serve as a practical solution for individuals who no longer need the policy’s original protection but want to access immediate value from their investment.
When Does a Life Settlement Make Sense?
Situations often arise where maintaining a life insurance policy no longer fits personal circumstances. For example, children may be financially independent, or a spouse who once depended on the coverage may have passed away. Rising premiums can also become a burden during retirement when cash flow matters most.
Some policyholders seek liquidity for medical expenses, long-term care, or supplemental retirement income. Before allowing a policy to lapse or surrendering it for a small return, a settlement may provide a more advantageous choice.
Who Qualifies For a Life Settlement?
Eligibility typically depends on several essential factors. Typically, candidates for settlements are 65 or older, though younger individuals with major health concerns can also be eligible.
Policies usually have a face value of $100,000 or more and are often permanent types such as whole or universal life. Meeting these requirements allows you to explore available settlement opportunities.
Benefits Of a Life Insurance Settlement
Settlements offer several potential advantages. Policyholders often receive a higher payout than the surrender value, delivering immediate access to cash without future premium obligations.
Choosing this path cuts off the financial strain of sustaining coverage that no longer serves its role. Selling the policy also frees you from an asset you no longer need, giving you control over how the funds are used.
Is A Life Settlement Right For You?
Consider whether your policy still fits your current life stage. Do you struggle to afford premiums? Has the need for coverage disappeared? Could a lump sum payment improve your retirement lifestyle or help you manage unforeseen costs?
If these questions resonate, a settlement may deserve consideration. Matador can help you determine the best path without obligation.
Find Out What Your Policy Is Worth
Discovering the true value of your life insurance policy starts off with a simple conversation. Contact Matador Insurance today to arrange a personalized consultation.