Keeping your life insurance is the best deal
Keeping life insurance will be the most profitable deal for the family, but a life settlement gives you options should you need it.
Life settlement investors are smart people and the reason they want to buy life settlements is that they will make a very strong profit on the deal. All the profit on a deal comes from the death benefit, so it clearly stands to reason that the family that keeps a life insurance policy will retain those profits for themselves. Remember life insurance is free of all taxes so the family retains 100% of the death benefit.
It’s clear that owning life insurance provides the best return to a family but what if your circumstances change? If for any reason you need cash or can no longer afford premiums a life settlement is a very powerful solution to changing financial needs. A good way to think about it is like owning a house. You buy a house to live in with your family and as a good long term investment. But if things change in your life such as you need to relocate for a new job, you can sell the house and move on with your life.
