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As People Get Older, Life Insurance Needs Change

As People Get Older, Life Insurance Needs Change in General Life Insurance

Hi everyone, here I am again, your faithful reporter. I am not sure about you but sometimes when I watch a video, I wish I could also have the choice of reading the transcript -- yep, it gets loud at the office sometimes, so reading  works better for me.

I was watching this video entitled "As we get older life insurance needs might change" and I did the transcript for your - in the case you also wish you would have earplugs sometimes =)

You can find the original source at HowStuffWorks.com here Life Insurance Video

"For many Americans, a life insurance policy provides a level of comfort and security when planning for the future -- but what happens when someone gets older and decides that their policy is are no longer needed or wanted? When is a life insurance settlement appropriate,  and how does someone knows is right for them?

Most people do not realize that if they have a life insurance policy that they no longer need or want, they do have options. One option is to surrender the life insurance policy back to the insurance company for cash, another option is to sell the policy to a third party company for a higher pay.

How is this option different from forgoing a policy to the life insurance company?

When you surrender a life insurance policy you do get cash, but in a life settlement you usually could get more cash than what you would get from the insurance company.

What kind of policies companies like yours can buy?

Most types of life insurance policies; whole life, universal life, Survivorship Life Insurance or term policies that could be converted into a universal life or whole life policy -  it has to be insuring someone over the age of 65.  Additional it could be owned by a trust, an individual, a corporation or partnership.

Who could be a good candidate to sell a policy?

A typical seller could be someone at a lighter stages of their life, with a 500K or greater policy, children or grown who does not have a need for the insurance anymore but may have an alternative use for the funds they can generate by selling the policy to keep capital. Another case could be a wealthy individual having maybe 5 or 10 million dollars of coverage who will certainly might not need that level and here is an opportunity to cash out to eliminate the obligation to make payments on the policy and redirect that capital to more productive assets.

How can an individual get the best deal?

You should consult with your advisor with whom you discuss your insurance matters, whether is your attorney, an accountant or financial planner, and that advisor should be able to help you get the best deal."

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