Why Would An Elder Law Attorney Recommend A Life Settlement?
- Though the reasons to recommend a life settlement may vary, hiring a broker with a fiduciary responsibility to your client is always a safe and smart decision.
- The life settlement process can be frustrating to navigate without prior experience and the major buyers in this space will naturally try to secure your client’s policy for the lowest price possible.
- The Windsor Marketplace® makes it easy and ensures that your client’s policy receives offers from of all the major companies that buy policies as well as a nationwide network of private funds and buyers that compete for policies.
- If you’re looking into a life settlement on behalf of your client, call Windsor today to get started.
Fund Medical Expenses And Long Term Care
When your client’s life settlement transaction is completed, they receive payment in full which can be used to fund their stay in a nursing home, assisted living facility, and pay medical bills.
If an individual is facing significant medical expenses, such as surgery, treatments, medications, or other healthcare-related costs, the funds obtained from a life settlement can be used to cover these bills. This can be particularly beneficial if the individual does not have sufficient savings or insurance coverage to meet their medical needs.
Long Term Care Costs
The proceeds from a life settlement are also commonly used for financing long-term care, including expenses associated with assisted living facilities, nursing homes, in-home care, or other forms of extended care. Long-term care costs can be substantial, and a life settlement provides a way to access funds to address these needs.
Life Settlement Calculator
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The individual may be restructuring their estate plan, and the life insurance policy may no longer fit into their overall strategy. Selling the policy could be part of a broader estate planning decision.
Liquidity for Other Investments
Selling a life insurance policy through a life settlement provides an immediate cash infusion, which can be useful for funding other investment opportunities or addressing pressing financial needs within the estate.
Estate Tax Planning
Life settlements can be employed as part of an estate tax planning strategy. If an individual’s estate is subject to significant estate taxes, selling a life insurance policy and using the proceeds to cover those taxes can help preserve more of the estate for heirs.
Minimizing Premium Payments
If the cost of maintaining a life insurance policy has become burdensome or unnecessary, selling the policy through a life settlement eliminates the need for future premium payments, freeing up resources for other aspects of the estate plan.
Life settlements can be used to provide equal or fair distributions among heirs. By converting a life insurance policy into cash, the individual can distribute the proceeds among beneficiaries or address specific bequests outlined in the estate plan.
An individual may choose to donate the proceeds from a life settlement to a charitable organization, creating a charitable legacy as part of their estate planning.
Policy Is No Longer Needed
The individual’s financial situation may have changed since they purchased the life insurance policy. For example, if they no longer have dependents or if their financial priorities have shifted, they may find that maintaining the life insurance policy is no longer necessary. If the individual’s beneficiaries no longer require the financial protection offered by the life insurance policy, or if there are no beneficiaries, a life settlement might be a viable option.
Health Condition Changes
If the individual’s health has deteriorated, making them uninsurable or resulting in higher premiums, they may choose to sell the policy through a life settlement rather than continuing to pay increased costs.
It’s important to note that a life settlement may not be suitable for everyone, and the decision to pursue one should be made after careful consideration of the individual’s unique circumstances, financial goals, and legal implications. An elder law attorney can help evaluate the specific situation, explore alternatives, and provide guidance on whether a life settlement is an appropriate option.