What is Variable Life Insurance?

A variable life insurance policy is a permenent policy with distinct accounts for insurance vs. the cash value. There may be a variety of  investment choices, like  mutual, equity, or money market funds. The owner has the flexibility to choose how to allocate the cash value in these markets. When the cash value grows, because of dividends, interest, or market growth, the death benefit and value of the cash account can also grow!

What Are Senior Variable Life Insurance Rates? 

Since variable life, like other insurance, has rates and policies that are set at the local level, it is important to find good brokers and accurate quotes for your city or town. Find senior citizen variable life insurance agencies and rates here for free!

Pros and Cons of Variable Life Insurance

• The policy owner can participate in how well the cash account performs by moving investments between the fund options.
• When the funds do well, the death benefit can increase. Money in the cash account can also cover some of the premiums.
• Many life insurance events are not taxable. The fund can grow, beneficiaries can receive a death benefit, and the policy may eve be borrowed against without generating a new tax bill.
• There is risk.There may be periods when investments do not do well. The death benefit could be reduced and cash accounts could get depleted. Polices may have a minimum guaranteed threshold to minimize this risk.
• Since these are permanent policies, they may be used in senior life settlement transactions.

If you are interested in finding out more about variable life insurance policies for seniors, you can use our fast and free quote form to compare senior variable life rates and find local agents.  Insurers usually vary rates and policies by state, county, or zip code. That is why it is important to find a good insurance agent in your local area.

Can Younger People Sell Life Insurance Policies (life settlements)?

Most of the time we hear about senior citizens selling life insurance policies for cash. This would mean a life settlement minimum age of 70, or sometimes down to age 60. But is this age carved in stone, or can younger people take advantage of this solution too?

Understand that when an investor purchases a policy they eventually want to get a return. It may seem sort of grim to talk about, but they do collect when the insured person passes away. In return, that insured person accepts a cash settlement of money they can use now, while they are still alive.

If they purchase a life insurance policy from a much younger person, it can be much harder for them to know how much money to offer. The fact is, the older a person is, the more accurate mortality predictions will be. It is hard to imagine how medical advances or some of the diseases of old age will affect the life span of a 30 year old. This makes it very tough to estimate the value of a policy while an insured person is still fairly young.

So while I have heard of cash settlments made for the life insurance policy of a 55 year old (rarely), I have not really heard of any 30 year old people selling policies. That does not mean it could not happen, especially if the health status of a younger person made it likely they would not survive into old age. And again, though it seems ghoulish to contemplate, a younger person with a serious health problem may be able to use the cash now for medical treatment, living expenses, etc.

Get life settlement quotes from a qualified company. An advisor will be able to answer your questions on a case by case basics. It is important for you to understand how these plans work, and if it is the right choice for you.

Can you Get Paid Cash for Life Insurance Policies with a Life Settlement?

Life settlements are growing in popularity. Most of the time an investor will pay cash for a permmanent life insurance policy. They hope to pay less than the face value of the policy, and make a profit when the insured person does pass away. In return, the insured person (or company) will get paid now, rather than have to wait for a death. This can benefit some companies, with unwanted key man or business owners policies, and it can also benefit seniors who may find better uses for money while they are alive.

In the old days, people would just let a life insurance policy lapse by not paying the premiums, or they would surrender it back to the insurer for the cash value. The cash value is usually very small in comparison to the death benefit (face value) of the policy. This gives people another option.

What Policies Can Be Sold?

Of course, this varies, but here are some general guidelines.

• Investors are usually looking for an older person. Some set the minimum age at 70, though some will accept younger people.
• This policy must be whole life, universal life, or term life with an option to convert to a permanent policy. The term policy must have some time left on the contract.

Is this a Good Idea?

On the surface, the whole thing may sound a bit ghoulish. But if an older person has an unwanted policy, or the need for money now outweighs the need for money later, this can work out to the benefit of the insured person. Many beneficiaries of the policy, being close heirs to the older person, are actually relieved that they can find a solution to help out mom or dad with money while they are still alive.

How to Sell A Life Insurance Policy

If you are interested in getting more information, you need to find a life settlement broker or company. This is usually a life insurance agent who has been certified to handle this type of transaction, though a regular agent may help you find the right person to talk to.

Online Life Settlement Solutions

Visit here: Senior Life Settlement Quotes