When you pass away, will your family be taken care of? A death benefit can help offset funeral costs and replace the income you bring home. Without additional savings available, an untimely death wouldn’t just be tragic–it could also be financially devastating.
The Biggest Reason for Life Insurance
For this reason, many people purchase a life insurance policy. Life insurance comes in a few different boxes, but the one constant feature across the board is the providing of a death benefit.
Some policies, like “whole life” and “IUL” policies also include investment features. Whole life policies guarantee a death benefit, while “term” life insurance policies promise one in the case that you pass away within a predetermined “term” that you pay for (20 years, for example. If you outlive the term, they would no longer be obligated to provide the death benefit).
While not all policies will end up paying out a death benefit, the availability of a death benefit should it be needed is an assurance many find worth paying for.
How is a Death Benefit Different from a Survivor Benefit?
A survivor benefit is available through the social security program. Social Security is more commonly known for providing monthly payouts to retirees, who have had a portion of their paychecks set aside for future retirement income. The Survivor Benefit program allows dependents of those taking income from social security to receive a percentage of that income after the person they are dependent on passes away.
Spouses and direct relatives that meet certain criteria are the only ones that qualify as “dependents” and can receive the survivor benefit. On the other hand, the death benefit provided by a life insurance policy can go to anyone you decide to include as a beneficiary–your spouse, family, or even a favorite charity.
Predicting the size of your own social security payments can be difficult–especially if you’re still several years away from retirement. Receiving a percentage of your social security payouts (a percentage that varies situationally) for a time might be enough to help your family stay financially afloat, but it’s hard to say.
Meanwhile, the death benefit of a life insurance policy is usually fixed–and, in the case of whole life policies, usually grows over time. Being able to know exactly how much will be left to your beneficiaries makes estate planning a lot more stable and comfortable.
Keeping Your Death Benefit Without Paying Premiums?
If you have a whole life insurance policy with premiums you can’t keep up with, or you just need extra cash on hand, look no further than Aspen Life Settlements.
Many people in these situations decide to “surrender” their policy, giving up their coverage and death benefit to their insurer in exchange for whatever might be left of their “cash value” after cancellation fees.
Instead, at Aspen Life Settlements, we encourage people to never surrender a good policy. We pay what you would have gotten by “surrendering” your policy in cash AND let you keep your death benefit. You maintain the coverage you need, keep the death benefit your beneficiaries will need, and no longer have to pay the premiums.
We use the investment portion of your policy as a place to grow our money safely. We’re not interested in collecting your death benefit–it’s yours, and we hope you live a long, healthy life before needing it.
Is there a way to keep your death benefit without having to pay the premiums? That possibility isn’t “too good to be true” … anymore. Aspen Life Settlements is changing the industry–and changing lives. Get in touch today to see what Aspen Life can do for you.