Countless adults enter their senior years wondering how they will make ends meet in retirement. Should health issues arise, suddenly, long-term care costs become another factor at play. Financial needs could quickly begin to outweigh current assets. However, what if you could use an existing asset, such as a no longer needed life insurance policy, to cover the costs so that your income and estate are protected—all while ensuring that your health and lifestyle are lived with quality, dignity, and choice? People are doing it every day.
If you own a life insurance policy, it is your legal right to use the policy for more than just a death benefit. In fact, a life insurance policy is an asset just like your home. It is considered your personal property. Would you abandon your home without selling it after years of making mortgage payments? Of course not. Similar to making mortgage payments on a home every month, you make premium payments on your life insurance policy. No one should abandon a life insurance policy after years of making premium payments without considering what its market value may be. Selling a life insurance policy could provide the policyholder 5 to 8 times the surrender value.
Too many seniors who own life insurance policies will make premium payments for years, and then, because they can no longer afford the premiums, they will surrender their policy for pennies on the dollar or they will stop paying the premiums and allow it to lapse.
If you own a life insurance policy, and are looking for ways to financially rebalance your assets in your senior years, you owe it to yourself and to your family to look into how much value you could get out of it before you surrender it or allow it to lapse.