However, options are seriously reduced when you’re 65 or older because few companies are willing to lend you money.
Anyway, this doesn’t mean that you have run out of options, especially given the case of a medical emergency –I mean, even if you have savings, you can’t leave your account blank.
It’s increasingly common for people in this position to sell life insurance, get good money in return, and walk away from paying the premium.
This is when Mason Finance comes in play, as a company that provides this service.
How does Mason Finance work?
This process takes 3 to 4 months, and some providers will speed up the process by only a few weeks.
The structure of the procedure is:
- The form can be completed online, by hand, or with a combination of both.
- The application will require basic personal information, including age and health status, along with questions about your life insurance policy.
- You will also need to authorize access to medical records.
- The settlement company will use the disclosure forms to collect your medical records and policy illustration.
- At this point, there is enough information to determine the value of the life insurance policy.
- The life settlement provider will decide whether or not to purchase your policy, and how much you are willing to pay.
- The life settlement provider will communicate the payment offer directly to you or to your advisor (this offer is negotiable).
5. Closing Package:
- The content of a life settlement closing package may change depending on the state where you reside.
- This process can be tedious and require several different signatures.
6. Transfer of funds:
- Once the insurance company has verified the change of ownership, the payment funds are transferred to you.
- Funds can be released through a single direct deposit or check, or through a series of payments during a predetermined period.
We know that this sounds like a long and complicated process –and it kind of is- but is worth the coin that you will get afterward and may end up being a better solution than leaving the insurance following as it is.
Life Settlement Eligibility
You should consider that, just like a credit application, the circumstances are different between one person and another, there are some things that will increase the possibility of selling your life insurance.
These are the basic eligibility requirements for life:
- Age/health: Most people who sell their life insurance are over 65 or have a serious medical condition.
- Type of policy: universal, comprehensive and convertible term policies.
- Policy Size: Most policies have a face value of $100,000 or more. A policy under $50,000 will not be accepted.
About this last point, you can sell multiple policies, although each must be at least $50,000.
Types of Life Agreements Offered
When you are going to sell your life insurance on this platform, you can choose between 3 different products called life deals:
If you are over 65 and have a permanent life insurance policy (or a convertible term policy) worth over $100,000, you may be eligible for a traditional life settlement.
Used when the insured has a chronic or terminal illness.
Since the insured person has a shorter life expectancy, the buyer’s investment will have a higher return and will be made sooner.
Besides, this type of agreement brings greater economic benefits than the traditional one.
Retained Death Benefit:
Allows the insured to retain a portion of the death benefit after a life settlement because they are not selling the entire policy, but receive a smaller settlement.
Usually, this type of contract is taken into account when there are financial needs now, but the insurance must still be provided for loved ones after the moment of death.
To Sum Up
Deciding to sell the life insurance policy is not something to be taken lightly.
Keep in mind that this means leaving your family potentially unprotected after the death of the insured member.
However, it can be the only way out against a very expensive treatment or certain special conditions, such as not being able to pay the premium, not needing the policy, among others.
This way, Mason Finance does not buy your life insurance directly but puts you in contact with companies that will.
They provide a useful tool for calculating the value of the policy which, although the offers you receive may vary, allows you to have a general idea of the money you can get and is also easy to use.Visit Mason Finance