When To Consider Selling Your Life Insurance Policy? II

Business:

1. Business owned policies those are performing below expectations.
2. Key person insurance policy is no longer required due to retirement or change in business structure.
3. A policy purchased to finance a buy/ sell agreement is no longer needed after the business has been sold.
4. Bankruptcy of business has caused liquidation of assets.
5. Deferred compensation programs in business have changed or not required.
6. If you are a corporation, selling corporate owned life insurance lets you regain back premiums paid on no longer needed policies.

Estate Planning:

1. A single life insurance policy is no longer appropriate- a survivorship policy meets the estate planning requirement and 1035 exchange is avoided.
2. If you are managing an estate, selling your current life insurance policy will help manage changes in estate size, eliminate premiums, and liquidate policies that are no longer needed.
3. A policy needs to be removed from an estate. The three year rule can be avoided by using the life settlement sales proceeds to repurchase a new policy out side the estate.
4. There is a significant reduction in size of estate due to loss of net worth and less insurance coverage is needed to fund the projected estate tax liability.

Charitable Organizations:

1. If charities can no more continue to pay premiums on gifted policies.
2. Proceeds of a Life insurance settlement could result in a larger gift to the charity organization than the policy itself.

Non-Profit Organizations:

If you are a non profit organization, selling a gifted life insurance policy provides funds that can be used now and also eliminates premiums.

Once a policy owner has absolutely determined that it no longer makes sense to continue holding a policy, Life insurance settlement or Life settlement may be economically advantageous relative to surrendering or letting the policy lapsed.

This innovative wealth and estate planning tool removes the burden of expensive insurance premium payments in addition to providing the lump sum cash settlement. This allows policy holders to get cash out of their life insurance policy, in an amount in excess of the cash value of policy(if any), while they are still alive. To get the highest life settlements is to improve the quality of life during your retirement years.

Source : www.articlecircle.com/finance/insurance/when-to-consider-selling-your-life-insurance-policy.html

Posted in: Life Insurance,Life Insurance Policy,Purchase Structured Settlements,Senior Settlement