Life Insurance: A Few Facts You Should be Aware of

rsz_17737-business-man-hand-pvLife insurance: you probably already know exactly how important it is to have. However, when you think about the specifics of life insurance, you may be surprised to find out that the insurance companies actually want you to cancel your policy or let it lapse. There are many reasons for this, but you will definitely want to think about some of the following before purchasing a new policy or getting rid of your old life insurance policy.

Age-Based Rating

Life insurance is more or less controlled by the actuaries and the statisticians of the world. This means you can understand the best deals and uncover where pricing is good or bad. From the point of view of a policyholder, you will want to remember that the younger you are the less of a risk you are in the eyes of an insurance company. Younger people are statistically less likely to pass away than their older counterparts. With that in mind, it should make sense that a younger person is a better gamble for the insurance company. If you let your policy lapse and want to write a new one, it will become more expensive because you will be older when you rewrite it.

What If You Surrender (From Company’s Point of View)

The company will be happy if you let your policy lapse, cancel, or surrender it for cash. They will have collected all of your premium for months and even years on end and won’t wind up paying anything out. In short, they want this to happen because they have made money off of the policyholder. Even if you were to surrender your policy for cash value, you would still be receiving an amount that would still allow the company to be profitable. You should consider surrendering your policy if it makes sense for you, but also consider other options.

What Are The Alternatives?

When it comes to actually ending the policy, one of the options you should consider is the ability to sell life insurance policy. The case of any specific policy sale will come down to the individual, but when you consider the option of maximizing your investment value from a life insurance sale, it only makes sense to get the most money for your investment.

Regardless of what you choose to do with your specific life insurance policy, it is nice to know that you have many life insurance settlement options on your side. As long as you take the time to fully understand what your rights and responsibilities are in the life insurance realm, you will be able to go out and make the best decision for you.

Join our newsletter

If you like Critical Financial, subscribe and get our latest content via email.

Powered by ConvertKit

Share this post:

Recent Posts

Leave a Comment

*

People count the money to buy a house in future success.

Avoiding Mortgage Scams: Don’t Fall for Unreasonable Promises

If it sounds too good to be true, it probably is. That’s sound advice for almost all aspects of life, including the search for... more →
Eat for free for a whole month via the meal kit companies discounts for new customers.

How To Get a Month of Free Food: 9 Meal Kit Companies Offering Discounts to New Customers

Play your cards right and you might be able to line up a month’s worth of free meals if you were to try out all nine of the meal... more →
Generate extra cashflow -- here are 97 ways.

96 Awesome Ways to Generate Extra Cashflow

Who doesn’t want more money nowadays? We’ve got you covered on that front. Here comes a long list of different ideas on... more →
Valentine's Day gifts that won't destroy your budget

Valentine’s Day Crafts Are Romantic Rescue from Crazy Inflation

Fall for the hype this week and you’re out an average of $143.56 for Valentine’s Day. Crafts and other do-it-yourself tactics... more →

Ultimate Guide to Bitcoin — FREE Ebook!

Have we got something for you: a free ebook about bitcoin! more →
Get a flu vaccine.

Why You Need To Get a Flu Vaccine Right Now

Flu vaccines aren’t just for the elderly  anymore. Here are 25 reasons you should go get vaccinated. more →
Financially successful

Acquire the Trait All Financially Successful People Have

Financially successful people tend to all have a lot of self-discipline. Improving your discipline in one area of your life often spills... more →

What’s the Best Free Recipe App?

The Apple Store and Google Play together offer more digital cookbooks than you probably have room for on your mobile device. So which... more →
New tax law might slow down housing market.

What Will the New Tax Law Do to the Housing Market?

The new tax law will have a profound impact on the housing market, although in ways that go beyond the deductibility of mortgage interest... more →

4 in 5 Households Will Get a Tax Cut in 2018

Four out of five U.S. households will get a tax cut as a result of the legislation that President Donald Trump signed into law today. more →
Will bitcoin reach $100,000?

When Will Bitcoin Reach $100,000?

Bitcoin has accelerated its pace of appreciation in recent months, and if the current levels between $15,000 and $19,000 make you itch... more →
The Dow Jones topped 24,000 -- now what?

The Dow Jones Crossed the 24,000 Threshold. Now What?

Stocks appear to be increasing in volatility, yet the markets closed on Monday, December 4 with the Dow Jones Industrial Average is... more →
Peer mortgage

Should You Get a Peer-to-Peer Mortgage?

If you can’t get approved for a home loan from a bank, you might want to look into applying for a peer-to-peer mortgage. more →
Investment gifting is awesome.

4 Things To Know Before You Donate an Investment

While donations of any kind are appreciated, gifting investments benefits both the giver and the receiver. Here are four key things... more →
Are you wondering: What's the Relationship Between the Stock Market and Federal Debt?

What’s the Relationship Between the Stock Market and Federal Debt?

Wouldn’t it be wonderful if gains in the stock market could actually reduce U.S. government indebtedness? If that were true,... more →
Create A Second Income Or Business

Create A Second Income Or Business To Fund Your Health Insurance Premium

Back in September of 2012, the Kaiser Foundation reported that the average employer sponsored health insurance premium was $15,475... more →