Life insurance is designed to provide your estate with the funds necessary to pay debts and to leave your loved ones with some financial security. However, there are instances in which you may need money, or your circumstances change, and life insurance is no longer necessary. Selling your life insurance policy is a viable option, but it is critical to understand the process before making this financial decision.
It is essential to keep in mind that several factors will affect the cost and availability of life insurance, including age, health, and the type and amount of insurance purchased. Life insurance policies have expenses, including mortality and other charges. If a policy is surrendered prematurely, the policyholder may also have to pay surrender charges and could have income tax obligations. You should also consider determining whether you are insurable before implementing a strategy involving life insurance. Any guarantees associated with a policy are dependent on the ability of the issuing insurance company to continue making claim payments.
Selling your insurance policy to a third party for a specified amount of money is known as a life settlement. You receive cash, and the buyer now owns your policy and continues to pay the premiums. When you die, the new owner receives all the death benefits.
If the policyholder has been diagnosed with a terminal illness and is not expected to survive for more than two years, the life insurance sale is known as a viatical settlement. These settlements can pay for medical expenses and other debts, so family finances are not overwhelmed.
Not everyone can sell their life insurance policies, as certain conditions must apply. Generally, only those aged 65 and over qualify for a life settlement. Such policies must usually have death benefits of at least $100,000, and there may be a minimum period for which the policy must have been active.1
Viatical settlements do not have a minimum age requirement, but the policyholder must generally have two years or less in life expectancy.
Every policyholder has their own reasons for selling life insurance, but common motivations include:
For many older adults, paying monthly premiums becomes increasingly burdensome. After years of paying premiums, they may be at risk of losing their insurance due to an increasing lack of affordability. For some seniors, receiving a lump sum payment is a wiser option than simply losing insurance coverage due to premium costs.
Life insurance sales usually involve working with a settlement broker, who will find investors willing to purchase your policy. There is an opportunity to shop for the best deal. You can also work with a provider who will buy the policy from you directly.
Age is typically an important factor when selling a life insurance policy. Potential investors tend to favor policies held by older adults. Why? Because they're looking to pay as little as possible in future premiums before receiving the death benefit.
If you're looking to sell your policy, you should expect to provide all medical records. Using a mathematical formula, medical underwriting by the providers gives an estimate of how long the policyholder is expected to live.
You will likely not receive your policy's face value. On average, recipients of a life settlement get approximately four times the policy's cash surrender value. The death benefit value typically varies between 10 and 25 percent. This means a $100,000 policy will provide you with up to $25,000.1
Factors affecting how much you will get for selling your life insurance policy include life expectancy, its cash value, and the premium amount. Individuals with shorter life expectancy will likely receive a larger settlement amount.
When a policyholder sells their policy, the cash payment is almost always greater than the policy's surrender value, but less than the death benefit.
If you have a large policy, it is possible to sell only the amount you need. For example, if you own a $2 million policy, you can sell half of it, retaining the rest for the beneficiaries.
Finally, not everyone selling their life insurance policy receives a lump sum. Some people may prefer a settlement in which income is paid over a predetermined amount of time.
Before selling your life insurance policy, it is crucial to consider all the financial and practical aspects. Prior to making your decision, you should consult a financial professional or your accountant. You'll want to be sure that the sale of the policy does not trigger detrimental tax obligations or result in losing access to public benefits, such as Medicaid.
Life settlements include all sorts of fees, and it is vital that you understand all the costs involved. There are alternatives to selling your life insurance policy that may prove just as beneficial, such as borrowing from it. Your financial professional or insurance agent can help you review these options and decide what may be best for your financial picture.
Digital what? Footprint? You may be thinking thats what you leave behind at the beach. While that may be correct, it is also what you leave behind every time you provide your email, set up a new online account, or allow your data to be tracked. Your digital footprint is the trail you leave behind with Location services on your phone. It is the data you leave behind when commenting on Aunt Sallys Facebook page, sharing your familys vacation pictures on Instagram, or traipsing around the internet to various sites looking for that cute Lladro figurine your mother wanted for Christmas. All of it tells something about you whether you realized it was happening or not.Most of the time, the sharing of your data what you do, how you do it, etc. may not be a big deal. Or is it? The reality is that your data supports big business every day. It is collected, bought and sold (mostly without your knowledge) by data brokers (i.e., Acxiom, Epsilon), credit and identity bureaus (i.e., Experian, Equifax, TransUnion), and Big Tech Companies (i.e., Google, Amazon, Meta, Microsoft, Apple) that share your data with their partners and ad networks.The danger to you is when there is a data breach at one of the many sites that has your data and your data is captured and posted on the dark web. This enables nefarious characters to better target you for scams and potentially steal your identity. Call Lily in the Details today 941-237-0157 and schedule Understanding Your Digital Footprint, Navigating the Online World Safely and Wisely for your community.
By Dr. David RiceSouthwest Florida is home to more than 100,000 veterans, according to the U.S. Department of Veterans Affairs.They own homes, manage businesses and pay taxes here. They volunteer at local nonprofits and donate to local causes. They are the core of our community.Nearly every day, at least one veteran walks into Advocate Radiation Oncology for treatment. Cancer impacts people from every background, including veterans. Even the most hardened veterans struggle with a cancer diagnosis, which is understandable; no one is invincible and cancer generates a wave of emotions shock, anxiety, frustration, fear and stress.Over the years, veterans in Charlotte and Sarasota counties have found an ally inside the treatment room Dr. Brian Lawenda. A board-certified, Harvard-trained physician who completed medical school at Temple University, Lawenda has all the credentials to help a patient feel confident that they're in good hands, medically speaking. Then they find out something else about their physician. He is a veteran, too, having served this country 13 years with the U.S. Navy and attaining the rank of commander."When I enlisted, I took an oath to serve this country and uphold the U.S. Constitution," Lawenda said. "When I became a doctor, I pledged to dedicate my practice to patients and the community I serve, and it's especially gratifying when those patients are fellow veterans."The best doctors don't just treat symptoms; they connect with patients, usually through shared experiences they're from the same state, cheer for the same sports team or attended the same university. Lawenda's military experience helps create an instant doctor-patient bond that continues during treatment and beyond. In fact, Lawenda has become the region's go-to radiation oncologist for veterans, not just Navy veterans, but those who have admirably served across all six branches of the military."When he told me he served in the Navy, it gave me comfort," said Ret. Command Master Chief Scott Fusco, a North Port resident who recently completed prostate cancer treatments at Advocate. "I had absolute trust in him from that point on."Lawenda wasn't the only veteran on Fusco's care team, either. His urologist also served in the Navy and referred Fusco to Dr. Lawenda for treatment."We served at different times and places, but we're all part of the same team," Fusco said. "They've been there, done that, just like me. There is instant respect, instant trust."Lawenda, who sees patients at Advocate's cancer treatment centers in Port Charlotte and Venice, specializes in the treatment of prostate, lung, breast, head and neck, rectal, liver, bone, cervical and other types of cancers. Although Lawenda doesn't technically specialize in the treatment of veterans, he is especially proud to support patients like Fusco on their cancer journey."A veteran may retire or end their military service, but he or she will never stop serving this country and their community," Lawenda said. "Being able to help local veterans beat cancer is extremely gratifying and certainly rewarding. The military is a brotherhood and a sisterhood, and I'll continue fighting for my brothers and sisters."About the AuthorDr. David Rice is a board-certified radiation oncologist who sees patients through Advocate Radiation Oncologys cancer treatment centers in Port Charlotte and Venice. Visit AdvocateRO.com for more information.
Managing diabetes is more than watching your blood sugar. Its about staying active, maintaining your strength, and continuing to enjoy the activities you love.Diabetes affects millions of older adults and can have a significant impact on overall health, mobility, and independence. As we age, managing diabetes becomes especially important because it can increase the risk of falls, nerve damage, muscle weakness, and other health complications.The good news? With the right support, regular physical activity, and a personalized treatment plan, older adults living with diabetes can take meaningful steps toward better health and a more active lifestyle.Why Is Exercise So Important for Diabetes?When you have diabetes, your body has difficulty regulating blood sugar levels. Physical activity helps your muscles use glucose for energy, which can improve blood sugar control.Regular exercise can also help:Improve muscle strength: Maintain the strength needed for walking, climbing stairs, and completing everyday activities.Improve blood sugar management: Help your body use insulin more effectively.Support heart health: Improve circulation and help manage blood pressure.Improve balance: Reduce the risk of falls and injuries.Maintain independence: Make daily activities such as dressing, bathing, cooking, and shopping easier.Increase energy and confidence: Help you feel stronger and more comfortable staying active.Even small amounts of movement throughout the day can make a difference!How Can Physical and Occupational Therapy Help?For many older adults, beginning an exercise program can feel overwhelming, especially when dealing with joint pain, weakness, balance problems, or other medical conditions.Thats where FOX Rehabilitation can help.FOX provides personalized physical and occupational therapy designed to help older adults safely improve their mobility, strength, and ability to perform everyday activities.A physical therapist can evaluate your walking, balance, endurance, and muscle strength to develop an exercise program that meets your individual needs.An occupational therapist can help you find safer, easier ways to perform everyday tasks while improving your ability to remain independent at home.Together, these professionals can help address the physical challenges associated with diabetes, including decreased sensation in the feet, muscle weakness, and difficulty with balance.The Benefits Go Beyond Blood SugarResearch has shown that structured exercise programs can help people with Type 2 diabetes improve their blood sugar control, preserve muscle mass, and increase overall strength.Regular physical activity may also improve blood pressure and reduce the risk of certain diabetes-related complications.Most importantly, staying active can help older adults maintain the freedom to do what matters most whether thats spending time with grandchildren, enjoying a walk with friends, gardening, or simply moving safely around their homes.Therapy That Comes to You!One of the greatest benefits of FOX Rehabilitation is that therapy can take place right in the comfort of your own home.FOX provides physical, occupational, and speech therapy through Medicare Part B for eligible individuals.You do not have to be homebound or recently hospitalized to receive services.This means older adults who may benefit from skilled therapy can receive personalized care in their familiar surroundings without having to travel to an outpatient clinic.Take the First Step Toward Better HealthLiving with diabetes doesnt mean giving up the activities you enjoy. With proper management, regular movement, and professional guidance, you can continue building strength, improving mobility, and maintaining your independence.Before beginning a new exercise routine, speak with your healthcare provider, particularly if you have diabetes-related complications or take medications that can cause low blood sugar.Remember: Its never too late to get stronger, move better, and take control of your health!