A death benefit is a pretty big deal–and is often measured in the tens and hundreds of thousands of dollars. It’s not usually an amount of money you want to leave on the table or walk away from.
On the one hand, you won’t personally receive any of your own death benefits. (Not without an elaborate scheme to fake your death and claim your new identity as a beneficiary.) But on the other hand, that death benefit can be a tremendous blessing to your dependents and/or beneficiaries.
But what if you don’t have dependents? Or your beneficiaries are well enough off without your death benefit? Is there still a reason to keep your death benefit?
Using Your Death Benefit for Good
A typical scenario is that someone purchases life insurance to take care of their family in the event of their premature death. If they were to pass away, the family would receive a death benefit that would help replace the source of income they initially provided.
In the fortunate and common event that the insured breadwinner doesn’t pass away, their “whole life” policy still guarantees them coverage and a death benefit. As children grow up, move out, and retirement happens, the people they care for the most are primarily self-sufficient. Now, in the event of their death, their death benefit isn’t as essential to their family as it would have been in earlier years.
Many people are unaware of the good that their death benefit can accomplish. While few beneficiaries are likely to “turn down” receiving a death benefit, you may feel that your benefit could be better used (and more needed) in the hands of a charity, nonprofit, university, or other organization. Many of these organizations get by only through generous donations. A donation the size of your death benefit (or even just a part of it, if you decide to divide it between family as well) is sure to have the power to bless several lives.
Threats to Your Death Benefit
If you have a term life insurance policy, it’s possible (and actually likely) that you will outlive your term and never receive your death benefit.
For those with “whole life” insurance policies (which provide lifetime coverage and a guaranteed death benefit) there are really just two ways to lose your death benefit.
- By surrendering your policy.
Whether you formally cancel your insurance policy or just lapse by not paying your premiums, your insurer will no longer provide coverage and is under no obligation to pay out a death benefit when you pass away.
- By selling your policy… to a traditional life settlement group.
When you sell your life insurance policy this way, you essentially are selling the “right” to your death benefit. When you pass away, whoever purchased your policy from you will receive the death benefit.
How to Keep Your Death Benefit
If keeping your death benefit is important to you–and it should be, for family, charity, and estate-planning purposes–the way to keep it might seem obvious. Based on this post, it’s clear that the way to keep your coverage is to simply not surrender, cancel, or sell your policy. Easy.
But… what if you can’t stay on top of the premiums? What if you need money now? What if you just want to keep your coverage and death benefit but don’t want to pay your premiums any more?
You guessed it–that’s where Aspen Life Settlements comes in.
Aspen Life Settlements is different from a traditional life settlement group. (Read up more on how right here.) Instead of selling us the right to your death benefit, we’re actually more interested in using your policy’s cash value feature as a conservative place to grow our money. So we leave your death benefit to you–for however you want to use it.
If it sounds too good to be true, at least we know you’re paying attention. But it is true!
- We pay you for your whole life policy. (We’re also interested in some IULs)
- We take over paying the premiums, so you don’t have to.
- You get to keep your death benefit.
- That’s it.
Get in touch with Aspen Life Settlements today to see how much your policy is worth! Get paid for your policy, and keep your death benefit.
1 thought on “Why Should You Keep Your Death Benefit?”
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