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Life Settlements

Debunking Common Misconceptions About Life Settlements

A life settlement can be the solution to many seniors’ financial troubles. Whether they need funding for medical care, their policy is too expensive to maintain, life insurance is no longer needed, an unexpected expense arises, or they simply want extra money fund their retirement, a life settlement can provide a solution.

With this being said, there are a few misconceptions about life settlements that may prompt doubt, due to the lack of awareness and education about the life settlements industry in general. The learning curve for life settlements can be steep, but after gaining a foundational understanding of what a life settlement actually is will tremendously help insureds decide if this lucrative financial option is the right choice for them.

Here at Abacus Life, we work to debunk the common misconceptions about the life settlement industry so that seniors can be well-educated with the facts. A few of these misconceptions include:

1. Only terminally ill insureds qualify for a life settlementThere are multiple types of life settlements. The specific type of settlement designed for those who are chronically or terminally ill is called a viatical settlement, however, there are other types as well that apply to those who meet a brief list of criteria. This criteria includes: insureds who own a policy with $100,000 or more in death benefit, and insureds who are 70 years of age or older. It is important to note that these factors are used as general guidelines, so it is best to reach out to us at Abacus to see if you qualify. Utilizing our Life Settlement Calculator can provide you an instant quote to get the conversation started.

2. There are rules for how you can spend the money – There are never any rules or regulations in how you spend your life settlement payout. The money is completely yours, therefore, you can spend it however you desire. It is common for settlements to be used to cover medical treatments or assisted living costs, however, this is not a rule. Interested in taking a luxury vacation or purchasing a second home? A life settlement can be used to turn these dreams into a reality.

3. There is no real difference in surrendering versus selling your policy – This is absolutely never the case. At Abacus Life, we offer approximately 6 times greater the cash surrender value for life insurance policies. A life settlement will always offer more than the cash surrender value but less than the death benefit, providing an cash payout to insureds for their policies. If you qualify for a settlement, it is guaranteed that you will receive more from Abacus Life than you would by surrendering your policy back to the insurance company.

A top priority for us at Abacus Life is to spread awareness about the life settlement industry by providing all the facts up front, along with the benefits it can bring insureds. Reach out to our team at 800-561-4148 – we would be happy to walk you through the process and answer any questions you have.