Why Seniors Choose to Sell Their Insurance Policy to an Investment Company

When ushering in the golden years of life, many seniors choose to sell their insurance policy to an investment company. This is often considered to be a hidden source of cash for seniors struggling to cope with inflation on a fixed income.

Abacus Life is an investment company that purchases unneeded life insurance policies that are still in force. Selling an insurance policy may be a viable option for many looking for that extra cash to boost their retirement savings.

Contact us to find out more. In the meantime, here are a few reasons why seniors often choose to sell their insurance policy to a reliable investment company.

Rising Prices and Inflation

Many seniors depend on investment cash flow and social security payments to live out their golden years, but it isn’t always enough. Inflation, market turns, and family life circumstances can often make a largely tax-free payout quite appealing for retirees who aren’t sure if their cash flow will be enough to carry them through. Selling their insurance policy for a substantial cash payout is often a viable option in these circumstances.

Budget Cuts

Everyone knows that one of the easiest ways to stretch your money is to trim the fat and cut unnecessary expenses from the budget. When you sell your life insurance policy to an investment company, you no longer need to make those pesky premium payments every month. If you are of retirement age, those premium payments can be sizable since many policy premiums are based on age. Cutting the premium payments from your budget allows you to apply that money toward other expenses.

Retirement Boost

When seniors need a boost to their retirement savings, selling an unneeded insurance policy is often an attractive option. The proceeds are largely tax-free and can be a sizable lump sum. This can offer a considerable cash boost to retirement savings or investment funds that offer a return. Many times, this boost will allow seniors to retire altogether or to live out their golden years comfortably, doing things they enjoy. It can also give them the opportunity to make life changes, like traveling or moving.

Amount Available

The amount seniors can get for their insurance policy varies with multiple factors. It is typically much more than the cash surrender benefit but less than the net death benefit. Many companies offer an average of about 20 or 25 percent of the policy’s death benefit, but they are all different. The amount you can get for your insurance policy may be enough to comfort you throughout your golden years as you live out your bucket list.

Call Abacus Life Today

If you are nearing retirement age and you have a life insurance policy you no longer need, call Abacus Life today to see how much it may be worth. You may get substantially more than the cash surrender value of your policy. Perhaps you’ve made other arrangements, or your beneficiary is no longer available. Perhaps you need to boost your retirement savings and make some cuts to your monthly expenses. Whatever your reason, Abacus Life may be able to help. Contact us today to find out.

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