There has been a growing awareness about the benefits of life inurance, but most families that own a policy are still underinsured. Experts attribute this to the fact that most people still imagine life insurance to be static investments, with the money locked away from emergency needs. Thankfully, this is not the scenario.
I learned about some of the lesse-known options in insurance at the website of Investor’s Financial Group (IFG). Partnering with National Financial Partners, the firm offers some of the most attractive offers fom their brokers in life settlements.
A Life Settlement is when you sell a policy for a lump sum payment. Policies of $250,000 and above can qualify for a life settlement offer, and you get to receive a competitive offers. Life settlement has its benefits as compared to lapsing a policy — when you receive next to nothing when you surrender a policy or take an expensive loan against it. It
Settlements are an attractive alternative to lapsing a policy, where the owner receives nothing, surrendering a policy for a low cash value or taking a policy loan which the owner may not be able to repay. A settlement offers you an immediate lump sum payment and you are no more required to pay future premiums. This option comes in handy to meet some unexpected dues or change in objectives or when the the personal circumstances that the policy was taken out for are no longer valid — for example, you’ve paid off your mortgage or your children have finished college.
Then you have life insurance premium financing. While insurance is definitely beneficial, what are the costs involved in maintaining a policy? A premium financing program is one that is designed help keep up the payment of insurance premiums, thereby assisting you not to have to compromise on coverage. This feature helps one pay the premiums by availaning a loan. The loan amount is paid back when the policy matures or, depending upon the financial ability of the insured, through manageable monthly instalments.
The life insurance premium financing can also help those who don’t wish to block their investments or cash flow, as well as companies who provide life insurance coverage for their employees.
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