Life Settlements – Sell your unwanted policy
Viatical & Life Settlements
A Life Settlement is the sale of an unwanted life insurance policy from the policy owner (seller) to a licensed third party (buyer). By definition, a life settlement exceeds the cash surrender value of the policy at the time of sale, but is less than the face amount or death benefit of the policy being sold. Lisa Rehburg Life Settlements * pdf * plymouth capital.com
References & Links
Why On Earth Would Anyone Want to Sell Their Life Insurance Policy?
Actual PAID Claim – Premium Total $35K Benefit $100,839.53
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?
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.
Lisa Rehberg Life Settlement
Life Insurance Buyers Guide
How much life insurance you really need?
Life Screening Form