All you need to know about Coventry Direct Life Insurance
Saving for retirement is necessary and must be done with due diligence. The inability to work beyond a certain age due to health restrictions or even lack of employment opportunities is the main reason for retirement. Thus, it is necessary to evaluate your financial situation and find out the best possible way to maximize your retirement savings to build a sufficient nest egg. There are many modes of investing and among them is selling your life insurance policy to get a maximum payout in the form of settlement.
Coventry Direct Life Insurance offers the payout option that helps you take the best advantage of the payout. You can sell your existing life insurance policy with the company for more than its cash surrender value. While the payout is more than the surrender value, note that the amount will still be less than what you might receive for the net death benefit.
Life settlements are private assets and the policyholder has the right to sell at will according to the ruling set forth the by the Supreme Court. There has been a steady increase in the number of payouts made over the past few decades by policyholders aged 65 and above. It is not uncommon for insurance priorities to change over the years, making life settlements a popular mode of maximizing retirement benefits.
How to maximize your retirement benefits with Coventry Direct Life Insurance?
You can maximize the benefits of retirement using the Coventry Direct Life Insurance in the following ways:
- Valuation of your life insurance– Life insurance policies taken a couple of decades ago may not hold the value you are looking for owing to a steady increase in premiums, expenses, financial obligations, and more. In such cases, there is no point in continuing the insurance policy, which is why the option for a life settlement is the popular choice to maximize your payout option. Coventry Direct Life Insurance experts help you understand the current valuation of your life insurance policy and the payout after a settlement is approved. Selling life insurance settlements is now a common practice to meet financial obligations with the option of converting the policy to a cash payment.
- Life settlement process– Coventry Direct Life Insurance offers two modes of payouts that are applicable to a life insurance policy. The first mode allows you to directly sell the life insurance for an immediate cash payout that can be used to meet financial obligations. Note that the cash payout option value is less than what you will acquire as part of the policy benefit.
The second option allows you to retain a portion of the death benefit applicable and eliminate the need for any future payments toward the premium amount. The process requires you to qualify for the settlement and then get approved after a complete policy evaluation, after which you will be eligible to receive the payment.
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What are the reasons to consider a life settlement in exchange for your life insurance?
Coventry Direct Life Insurance allows you to qualify for a life settlement in two easy steps. However, if you are still unsure about taking a settlement in the first place, here are a few reasons why cashing out can prove beneficial for your retirement:
- Priority– Insurance requirements and priorities change over the years, which is why sometimes selling your insurance policy for settlement can be a prudent financial move. The circumstances will primarily influence your need to sell the policy.
- Premium price– Often, the insurance policy can be difficult to sustain owing to a high premium. A settlement will reduce the financial burden and help with cash flow management with a fresh injection of funds through the settlement.
- Policy– The type of policy taken may be more than what you need at present. It is sensible to sell the policy for a settlement and reinvest in a lower premium based policy.
- Expenses– Expenses can also exhaust the payout on your policy owing to an increase in medical costs and long-term care expenses. There is no point in taking an insurance that does not cover your costs and a settlement will help you manage the same. Coventry Direct Life Insurance provides multiple modes of cashing out on your current policy.
- Supplement retirement savings– It is one of the more compelling reasons to sell your life policy and take a settlement, as the cash flow will supplement your retirement nest egg. You will be at more peace knowing there is a substantial saving to tide you over your leisure years in the future.
- Part sale– It is also possible for you to sell a part of your life insurance that eliminates the need to pay for premium payments. The part sale allows you to maintain a portion of your coverage and you can simultaneously benefit from the extra cash flow.
Note that Coventry Direct Life Insurance does not necessarily purchase your life insurance policy. The company merely acts as a referral service by advertising the policies to potential investors in the market. Once the policy is approved, it is sold to the highest bidder in the market.