Using Your Life Settlement To Do Some Good
We are generally in very different positions, both financially
and emotionally, when we first buy a life insurance policy. Now
perhaps we bought the policy as an investment, to provide
financial security, or because it was a condition of a loan that
we needed when we first began our small business all those years
ago. As we age, however, our incomes generally continue to rise
and we tend to be in a more secure position than when we first
purchased the policy. For these reasons and many more, we may
consider "cashing in" our now unneeded life insurance policy.
One option for people to consider for their unneeded life
insurance policy is to sell it to a bank or other third party in
the form of a "life settlement". Also known as senior
settlements, a life settlement provides the original owner of a
life insurance policy with a percentage of the death benefits
that were to have been paid out upon their death. Many people
choose this option because the cash value of a life settlement
generally exceeds the surrender value that would have been paid
by the life insurance policy. These lump sum insurance payments
are often used by people to strengthen their retirement funds or
to just provide them with some liquid cash to spend as they
choose.
But if you are considering a life settlement as an option for
your life insurance policy, you may want to think about
establishing a "legacy" donation. You can use life settlements
to establish legacy donations and in the process give your
favorite charity some much needed funding and feel much better
about yourself knowing that you have done your part to make the
world a brighter place. There are some other benefits to
converting your senior settlement into a legacy donation that
are worth considering.
Anyone can use the proceeds of their life settlement to
establish a legacy donation and in the process gain a
significant tax deduction in the process. This tax deduction
would certainly exceed the surrender value of the life insurance
policy and therefore put the proceeds from the life settlement
to good use on two fronts. The charity and the people it
benefits gain funding to continue their efforts while you can
both feel better about yourself and gain a substantial tax
deduction in the process.
Life settlements are a great option to consider for people with
unneeded life insurance policies. Not only do they convert your
life insurance policy into a lump sum insurance settlement and
therefore put a lot of liquid assets at your disposal, they
often exceed the surrender value offered by the issuing company.
A legacy donation is a very noble and logical way to use the
proceeds from a life settlement to bring some hope into the
world while giving you a significant tax deduction in the
process. Using your life settlement to establish a legacy
donation is a win-win situation for you and the charity of your
choice and should be considered a viable option for your
unneeded life insurance policy.
Find more information about life settlements at Senior Life
Settlements