Using Your Life Settlement To Do Some Good
By Jim Prescott
We are generally in very different positions, both financially and emotionally, when we first buy a life insurance policy. Now perhaps we bought the policy as an investment, to provide financial security, or because it was a condition of a loan that we needed when we first began our small business all those years ago. As we age, however, our incomes generally continue to rise and we tend to be in a more secure position than when we first purchased the policy. For these reasons and many more, we may consider "cashing in" our now unneeded life insurance policy.
One option for people to consider for their unneeded life insurance policy is to sell it to a bank or other third party in the form of a "life settlement". Also known as senior settlements, a life settlement provides the original owner of a life insurance policy with a percentage of the death benefits that were to have been paid out upon their death. Many people choose this option because the cash value of a life settlement generally exceeds the surrender value that would have been paid by the life insurance policy. These lump sum insurance payments are often used by people to strengthen their retirement funds or to just provide them with some liquid cash to spend as they choose.
But if you are considering a life settlement as an option for your life insurance policy, you may want to think about establishing a "legacy" donation. You can use life settlements to establish legacy donations and in the process give your favorite charity some much needed funding and feel much better about yourself knowing that you have done your part to make the world a brighter place. There are some other benefits to converting your senior settlement into a legacy donation that are worth considering.
Anyone can use the proceeds of their life settlement to establish a legacy donation and in the process gain a significant tax deduction in the process. This tax deduction would certainly exceed the surrender value of the life insurance policy and therefore put the proceeds from the life settlement to good use on two fronts. The charity and the people it benefits gain funding to continue their efforts while you can both feel better about yourself and gain a substantial tax deduction in the process.
Life settlements are a great option to consider for people with unneeded life insurance policies. Not only do they convert your life insurance policy into a lump sum insurance settlement and therefore put a lot of liquid assets at your disposal, they often exceed the surrender value offered by the issuing company. A legacy donation is a very noble and logical way to use the proceeds from a life settlement to bring some hope into the world while giving you a significant tax deduction in the process. Using your life settlement to establish a legacy donation is a win-win situation for you and the charity of your choice and should be considered a viable option for your unneeded life insurance policy.
Find more information about life settlements at Senior Life Settlements
About the Author
Jim Prescott is a CPA has over 30 years of business experience and is accociated with Senior Life Settlements a site with articles and information about life settlements.