What Beneficiaries Need To Know About Life Settlements

As a beneficiary of a life insurance policy, you may find yourself in a unique position to help an aging parent explore options and if it is time to sell their life insurance. Whether the goal is to fund healthcare, pay for long-term care, provide immediate financial support, reduce expenses, or simply to have cash now, a life settlement can be a valuable solution. Understanding what a life settlement is and how it compares to other options can help you and your parent make an informed decision.

What Is A Life Settlement?

A life settlement is the sale of an existing life insurance policy to a third party for a lump sum cash payment.

• What happens to the policy? The buyer becomes the new owner, beneficiary and pays the premiums going forward.
• Why choose a life settlement? A life settlement can provide immediate cash and is often a higher payout than surrendering the policy back to the insurance carrier, allowing policyholders to access funds while they are still alive.

Is It Time To Sell Your Parents Life Insurance Policy?
Options For A Life Insurance Policy

1. Keep the Policy and Collect the Death Benefit: This ensures the full payout for beneficiaries but requires ongoing premium payments.
2. Surrender the Policy: Cancel the policy and collect the cash surrender value offered by the insurance company, typically much lower than the policy’s face value.
3. Sell the Policy Through a Life Settlement: Receive a lump sum that is often much higher than the surrender value, providing immediate financial flexibility.

Benefits Of A Life Settlement For Beneficiaries

• Immediate Financial Support: Funds can be used for anything such as to pay for healthcare, in-home care, assisted living, investment opportunities, gifting to loved ones, etc.
• Empowerment: Your parent can share the proceeds with you or other family members now, offering financial relief without waiting for the death benefit.
• Avoid Policy Lapse: Studies show that 90% of policies never pay a death benefit, as they are either surrendered or lapse due to unpaid premiums. A life settlement ensures the policy’s value is not wasted.

Selling Your Parents Life Insurance Policy
How LifeRoc Direct Can Help

LifeRoc Direct specializes in helping families navigate the life settlement process with compassion and expertise. We understand that beneficiaries often assist their parents during difficult financial or health-related transitions.

Here’s how we make the process simple and stress-free:

1. Expert Guidance: LifeRoc is a trusted leader in the life settlement industry, recognized for our knowledge, transparency, and proven track record. We provide clear, honest guidance to help families make informed choices, even during challenging times.
2. Free Policy Appraisal: We provide a quick no-obligation appraisal to determine the policy’s value in today’s market.
3. Great Offers: Through our affiliated licensed life settlement provider we give you direct access to our extensive network of funders and work to get you great offers.
4. Hassle-Free Transactions: We handle all the details of the sale, ensuring a smooth process so you can focus on your parent’s care.

Life Settlement Facts Beneficiaries Should Know

• Proceeds from a life settlement can be used for anything, including medical bills, housing costs, or family gifting, investing, travel, etc.
• A life settlement allows beneficiaries to benefit now, without waiting for their loved one to pass away.
• With over $20 billion of face amount settled  in our careers and with 200+ years of combined experience, LifeRoc has become a trusted resource in the life settlement market.

Make The Right Choice For Your Family

Helping a parent sell their life insurance policy through a life settlement can provide much-needed financial flexibility and relief. Contact LifeRoc Direct today for a free policy appraisal and learn how we can assist you in increasing the value of this important asset, ensuring your family’s needs are met with expedience and expertise.