If you are 65 or older and have a life insurance policy you no longer need, or no longer can afford, you might consider a life settlement. This is an arrangement in which you sell your policy to an investor who will pay the premiums while you are alive and collect the death benefit when you die.
By: Elliot Raphaelson, Tribune Content Agency
Chicago Tribune, 15 September 2015

If you are 65 or older and have a life insurance policy you no longer need, or no longer can afford, you might consider a life settlement. This is an arrangement in which you sell your policy to an investor who will pay the premiums while you are alive and collect the death benefit when you die.

The advantage to you is that an investor will pay you much more than the insurance company will if you simply turn the policy back for the cash surrender value. (According to a 2013 study by the London Business School, the average life settlement was four times the surrender value.) This can be advantageous if you no longer need the insurance to protect your beneficiaries and the proceeds are not required to fund estate taxes. (You will owe income taxes if the amount you receive is greater than the premiums you paid.

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