As your age begins to become a more relevant concern to your daily life and you begin to plan in earnest for what your financial situation will look like as you get older, it's important that you take the time to consider all of your assets. If you've been paying premiums on a life insurance policy, it's reasonable to consider how that policy can benefit you in the short term.
Unfortunately, many people remain closed off to that possibility and remain solely focused on their liquidity. This can trap you into feeling like you don't have options that may actually be available and might cause substantial short-term financial stress that should be avoided.
Below, you'll find a guide to some questions you should ask your financial advisor about your life insurance policy. Having the answers to these questions can provide you with confidence about how to move forward with your finances and can help open the door to options that you may have never previously considered.
Ask About Policy Upgrades
If your financial concerns are primarily focused on making sure you see a value return from assets you've already accumulated, it stands to reason that you'll have an interest in upgrading a term policy. Rather than allowing that term to lapse without seeing any payout of the benefit, you may be able to roll it over into a permanent arrangement.
It's important to remember, however, that beginning a new permanent life insurance policy at an advanced age may require you to pay substantial premiums. In some cases, those premiums might create short-term hardships that might harm the original value of the policy.
If you didn't have the foresight to purchase a permanent policy as a younger person with fewer risk factors, you'll likely need to do an analysis of your finances to determine whether or not you can safely absorb the additional costs.
Ask About Disability Coverage
For many people, the prospect of facing death may be less intimidating than the possibility of being saddled with a long term disability. A serious illness or injury might interfere with your ability to stay employed, and retired people may not have sufficient health insurance coverage to handle the full range of costs that are likely to be associated with a long-term illness.
In some cases, your life insurance policy may be eligible to provide a limited payout in the event that you require financial relief due to a disability. Though this may not guarantee that you're able to generate the greatest possible value from your policy, it can still stand as a significant lifeline that provides you with a great deal of relief. Certain policies have restrictions on this coverage, so it's important to consult with your agent about how to maximize your protections.
Ask About Exclusions
When you're considering transitioning an insurance policy into a tangible asset, it's important to consider the restrictions in place which may limit the efficacy of the policy in the first place. If your life insurance is difficult to collect on, there may be much more value in cashing it out than maintaining the policy.
Your insurance agent will be able to provide you with a list of exclusions, which lay out precise circumstances under which your policy can't be paid. If you think you may be at risk for some of those situations, then a short-term cash infusion may be a wise choice.
Habersham Funding, LLC has the skills and experience necessary to help you navigate the sale of a life insurance policy. Turning to a reputable firm for vital assistance can help guarantee that you have access to the money you need during a time when you still need it.
