Life Settlements Quotes – Sell your unwanted policy

Life Settlements – Viaticals

A Life Settlement or  Viatical (less than 2 year life expectancy) is when you  sell of a life insurance policy that you no longer want  to a licensed third party (buyer).  You get more than cash surrender value, but is less than the face amount or death benefit.  ^{Lisa Rehburg Life Settlements * pdf}  * ^Investopedia *   ^{plymouth capital.com}

• Real Life Insurance Settlement Examples: 

  • 5 Life Settlements That Didn’t Get Away

FAQ’s

References & Links

• Why On Earth Would Anyone Want to Sell Their Life Insurance Policy?
• 3 Life Settlement Trends to Watch in 2019
• 8 Myths of Life Insurance Settlements – Debunked! *  Pdf
• Life Insurance Innovations Include a Valuable ‘Out Clause’
• Stunning Statistics About How Many Seniors Lapse Their Policies Each Year
• Interesting Study Shows How Seniors Plan to Fund Long Term Care
• New Tax Law Positively Impacts Life Insurance Settlements
• Getting Past The “Ick” Factor – How To Talk With Clients About the Idea of Selling Their Life Insurance Policy
• With the Estate Tax Exemption Doubling, Some Families Find They Have Unwanted Life Insurance Policies…Now What?
• The Three Rights of Life Insurance Settlement Prospecting
• Life Insurance Settlements Can Add Living Benefits to a Life Insurance PolicyWhat Should You Do About the Life Insurance You No Longer Need?
• Actual PAID Claim – Premium Total $35K  Benefit $100,839.53
• lcxlife.com  Life Care Exchange
• Cal Broker How Life Insurance Settlements Help Your Clients…
• How Life Insurance Settlements Help Your Clients…and You Too! Real Life Examples
• Covid-19’s Possible Effects On The Life Settlement Market – Insurance News Net
• LIFE SETTLEMENTS – Could You Use Another Tool in Your Toolbox?
• Grigsby v. Russell (1911) established and legitimized the life insurance industry, ruling that policy as private property, which may be assigned at the will of the owner. ^Wikipedia *
• CA SB 1837  Life Settlements
• Life Settlement Advisors

Question 

my mother wants to cash in her life insurance, she has approx 9,000, is it better to cash out or take out a loan?

if she takes a loan does she need to pay it back, if she takes cash does she have to pay taxes?

Answer

***Generally it’s better to take a loan.  That way you still have the policy in force.   You don’t have to pay back a loan.  The company might bill you for the interest though.  Does she need the whole 9K now or would it be better to borrow say $1k/year?

Depends on how much she has paid into the policy.   Anything less than $9K – there would be tax on the difference.  That’s why a loan might be better.

What’s her tax bracket?   $1k/year would be lower taxes than 9K at one time.

her income is approx (social security  only) $7,644/yr, which ss is not suppose be taxable.