Meet Connie. Connie is a retired teacher at age 69.
Connie was divorced 24 years ago and became a single parent with three minor children at the time. She purchased a life insurance policy with a death benefit of 500,000.00 to protect her children.
Connie’s children are all grown and supporting themselves. Connie’s large and escalating premium payments to keep her life insurance policy are becoming a huge financial burden.
In response, Connie contacts her insurance company and is advised she has the option to surrender the policy. The problem is she is only offered around 4% of the policy’s face value.
Like Connie, many people are simply not prepared for the sharp escalation in policy premiums that often times occurs while owning many policies. Often times these policy increases occur precisely at the time an insured may face growing health care costs and other financial concerns. Or, the increases simply threaten the insured’s standard of living in retirement.
Under these circumstances, maintaining the life insurance policy becomes a much lower priority than in the past.
Are there more attractive alternatives to letting the policy lapse or simply accepting a surrender value? Absolutely!
WE can help! Contact us today for a free, no obligation analysis on whether a life settlement may be right for you!
Dan A. Penning
Life Insurance Settlements Specialist
Professional Life Settlements Plus
