While looking into life insurance I came across a few different websites that talk about Life Settlements. In big bold letters on most of the sites I was shown that I can get a policy from $25,000 to $500,000 without having to show any medical records or even a life expectancy report. So basically Life Settlements are a fancy way of saying life insurance, only you can collect on it while you’re still alive. According to sub-text a life settlement is when the owner of a policy sells said policy for a lump-sum payment. So say you’re life insurance covers $250,000, you can sell it to this company and they’ll give you your money. Would I say this is a good idea? It honestly depends on how soon you believe you’re going to have to make your final arrangements. Sure, it’s not nice to think that way but when it comes down to it, how long does it really take for insurance to get worked out so that you can get your family out of debt (after you pass on) since they covered funeral costs?
Makes you think.