While the retirement years bring new freedoms, they also tend to welcome in concerns. One of the top worries is that you won’t have enough money to fund your living expenses.

A survey by Harbor Life Settlements found that 1 in 5 retired seniors don’t feel they have enough funds to cover their medical, living and retirement expenses comfortably. Top retirement expense concerns are affording medical expenses (35%), as well as long-term care (30%) and housing (28%).

For seniors who own life insurance policies, concerns about affording retirement are often unnecessary. Secure a life settlement by selling your life insurance policy, and you can obtain a lump sum cash payment to fund your retirement. That can mean a lot of cash in your pocket, affording you precious peace of mind.

What is a life settlement?

Our lifestyles and circumstances change when we reach retirement. Your life insurance policy may not be as vital today as it was when you were younger, but it is still an important financial asset. You can use the policy to your advantage. A life settlement allows you to sell your life insurance policy to an unrelated third-party. With the sale, you obtain a lump sum cash payment in exchange for selling the policy and its responsibilities.

The money you earn from a life settlement can be used to fund your retirement any way you wish. That means if you’re concerned about health or living expenses, you can obtain money from a life settlement to ensure that you’re covered.

How a life settlement works

A life settlement entails selling your policy to a third-party for cash. The buyer of your policy takes on all responsibilities of the policy, including paying the premiums. That means if you’ve been finding it difficult to afford your life insurance policy, a life settlement can solve that issue for you.

Rather than letting your policy lapse due to lack of funds like 37% of retirees in the U.S., keeping the policy current and pursuing a life settlement allows you to secure much needed funds. The bonus is you’ll no longer be responsible for making payments.

A life settlement involves applying and then supplying information and documentation. This includes a list of your healthcare providers who can supply medical records showing you are in good health and of sound mind. Your application then goes under review and underwriting. After this, a bidding auction is held for your policy. It’s likely that your policy will go through several rounds of bidding. This means you’ll have several offers for your policy.

Your life settlement company will review the results of the bidding with you, sharing the highest bid. You either accept or decline the bid. If you accept the bid, a closing package will be drawn up. The settlement is reviewed, and you receive a funds transfer.

Requirements to obtain a life settlement

Many seniors are surprised to discover that it isn’t necessary to be ill or in failing health to receive a life settlement. As a matter of fact, when you’re still healthy and able to enjoy the funds is often the best time to get a life settlement. For instance, perhaps you’ve always wanted to take a dream vacation or remodel your home. A life settlement can help you make your dreams a reality.

You’re in charge of the entire life settlement process. You can choose which life settlement company, broker or provider you work with. The company will be able to tell you approximately how much your policy is worth. You decide if you want to sell your policy for the amount offered.

Life settlement sale options

Before you make a move to sell your life insurance policy, keep in mind that not all options for selling your life insurance policy are equal. For instance, a life settlement provider is a buyer. Going directly to the buyer can result in a lower offer. A life settlement company or broker, on the other hand, offers your policy to many buyers. This results in getting the highest bid possible and a higher payout.

Using a life settlement company like Harbor Life Settlements reduces the amount of upfront work you need to do. An experienced life settlement company will have knowledgeable employees on staff ready to help broker a favorable deal for you. Their input includes reviewing your policy details and providing a complimentary, no obligation assessment of value, necessary for sale. A settlement company also underwrites the policy and presents to brokers, who then market the policy to many potential buyers.

Your life insurance policy is an asset, and its sale can result in a more comfortable retirement. Selling your life insurance policy can be a solid financial plan that makes your senior years more satisfying and less stressful. For questions and direction as to how to sell your life insurance, the experts at Harbor Life Settlements are happy to help.