Creative Ways to Access Money For Senior Citizens

Senior Citizens are looking to life settlements during this uncertain economy. This little known transaction is becoming increasingly popular for seniors looking for sources of cash. They can provide an immediate lump sum for unwanted life insurance policies.

Life insurance offers great financial security for when someone dies. Although, most believe that their unwanted policy has little value outside of its original purpose. Most believe there only two things that can be done with an unwanted life policy. Either surrender the policy to the insurance carrier or let the insurance policy lapse. If the policy lapses the owner gets nothing. If the policy is surrendered to the insurance carrier, the policy holder usually gets very little.

Senior settlements offer a third and more attractive option. These occur when someone sells their existing life policy for an immediate lump sum payment. The seller benefits by getting instant money which is often 200%-500% more than the cash surrender value offered by the insurance carrier. While the buyer, often a financial institution such as a bank or investment fund, pays the ongoing premiums and receives the death benefit when the policy matures.

Unfortunately, many seniors don't realize that life policies can be bought and sold by their owner, like any other asset. The right to sell an insurance policy has even been upheld by the U.S. Supreme Court. In fact, life insurance policies have been sold in the USA dating back to the 1800's.

Contacting a settlement broker is usually the first step of the life settlement process. The life settlement broker can provide a free estimate and negotiate offers with potential financial institutions interested in buying life insurance policies. The life settlement brokers usually require an application and then they will collect the other medical records and insurance documentation on their own to get the process started.

Want to find out more about a life settlement, then visit Kelly Ramirez's site on how to choose the best life settlement broker for your needs.

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