That money can come in handy especially if you realize you haven’t saved enough for retirement or social security benefits are not enough to cover living expenses.

#2: Money for medical expenses

Stats show more and older Americans are filing for bankruptcy due to medical bills. People aged 55 and older account for about 20% of total bankruptcy filings.

Many seniors don’t plan to save money for medical expenses when they retire because they assume Medicare will take care of it all. But, Medicare doesn’t cover routine eye exams, dental exams, hearing aids or long-term care, which can prove to be extremely expensive.

Add these costs to regular office visit co-pays, deductibles, and coinsurance and you’ll see your medical bills quickly add up.

It’s estimated that the average 65-year-old retiring couple can expect to pay upwards of $275,000 in medical bills during retirement.

While selling a life insurance policy now may not cover all of your medical expenses, it can help and also give you the opportunity to save for future expenses.

#3: Take a trip or splurge on an adventure

Some seniors live by the mentality that you can’t take it with you. That’s why many are opting to sell their life insurance policies to have their “bucket list” adventures.

Selling a life insurance policy not only makes monthly premiums disappear, making that money accessible but also brings in extra cash from the policy to take that dream vacation. Many seniors take advantage of this money to pay for experiences they would have otherwise not ever been able to afford.

#4: New tax laws

New tax laws have made life settlements a more favorable option especially for those who may have previously never considered it.

The provisions in the March 2018 Tax Cuts and Jobs Act include the doubling of the exemption for the estate tax (to $11.2 million per individual and $22.4 million per couple). There is also a new tax credit for non-child dependents and the inclusion of premiums in the tax basis. This reduces tax rates on life settlements.
#5: The need to replace lost income in case of death no longer exists.

If the beneficiary of your life insurance policy has already died and there is no need to replace any lost income, then you may want to consider selling your life insurance policy. That money, whatever amount it may be, will be available for you to use now as you wish.

Many seniors feel as though that money can be better used by themselves than leaving it to another beneficiary of the policy. You will also not have to pay premiums any longer which means more money in your wallet each month.
If you’re interested in receiving a personalized life settlement estimate or have questions about the process, call 714-271-2223 to speak with expert, Allan Silverman.