How Life Settlements Help People Retire

People spend a lot of time and energy preparing for retirement. Retirement is supposed to be the golden years when people relax and enjoy life with their partner. Substantial energy is expended, ensuring people can afford to retire comfortably. In many instances, they spend years carefully planning and saving for this time in their lives. No matter how much you plan, there are variables you just can’t account for.

Sometimes, the beneficiary of your life insurance proceeds may pass before you. In other instances, there may be a reason you need to dig into your retirement nest egg. Perhaps you got started late and just didn’t save enough. In all these instances, Abacus Life Settlements can help. Even if your financial circumstances have changed and you just don’t need life insurance anymore, Abacus Life is the best call you can make. Rather than relinquishing your life insurance policy that you have paid into over the years, you can sell it and retire comfortably. Here’s what you need to know.

What are life settlements?

A life settlement is a financial transaction where you sell your existing life insurance policy to a third party. This is different from surrendering your policy for its accumulated cash value which is also an option but not as lucrative. Life settlements have been in practice since a Supreme Court Ruling of 1911 made them legal transactions.

When you enter into a life settlement, you receive a lump sum payment for your life insurance policy and no longer need to make premium payments. The lump sum payment you receive is often much more than the cash surrender value of your policy but much less than the full payout value of your benefits. The industry average is somewhere between 20 percent and 25 percent.

How can they help me retire?

When you receive your life settlement, the financial burden of premium payments is lifted, freeing up money in your monthly budget. In addition, you’ll receive a generous lump sum payment to give your retirement nest egg a substantial boost. If you are near retirement age and haven’t yet retired due to financial concerns, Abacus life settlements may be the answer.

The laws vary by state, but generally, you must be at least 65 years old and have an active life insurance policy worth at least $100,000. In many instances, a life settlement may be the answer to retiring sooner than planned. The lump sum payout, along with the loss of monthly premiums due, can create enough room in your budget for you to retire comfortably and start enjoying those golden years.

Call Abacus Life Settlements Today

If you are ready to retire but have continued to work due to financial constraints, call Abacus Life Settlements today. You may be able to sell your active life insurance policy for a substantial lump sum while ridding yourself of those pesky premium payments that eat away at your monthly budget. Get the money you need to start enjoying your golden years instead of working your fingers to the bone by partnering with Abacus Life Settlements. Make a call today to see if you qualify and start enjoying your golden years with Abacus.