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Your life insurance policy rewards you with many benefits, in your post retirement years; the time when your health is weak and expenditures increase exponentially. For all the premiums you paid in your prime years, you can reap the rewards now. |
You have options to obtain cash value, life settlements or accelerated death benefits, from your policy.
If yours was a term insurance policy, as against whole life policy, possibilities are that you pay more premiums in your old age than when you were younger. Since premiums rise with age, it is better to save and invest the amount rather than paying your present earnings towards insurance and living a stressful life. So, if you have a policy with cash value, you can borrow against it or surrender it and invest the lump sum amount. Use it to create an estate or to pay taxes. If you do not have long-term care insurance, you may also be able to use the cash value of your life insurance to pay for medical and other long-term care expenses.
You also have the option to opt for a life settlement or senior life settlement, which is the transfer of a life insurance policy from the policyholder to a licensed Life or Senior Settlement fund. The market value of this is greater than the life insurance cash value but lesser than the net death benefit. On an average, Life Settlements are at least three times larger than cash surrender values. A Life Settlement can benefit a wide range of seniors as they advance in their age. Life Settlements let you liquidate your life insurance policy. This money can be used at your discretion to cover any needs. If you or a family member is suffering from a terminal illness, you can redeem your life insurance policy. The amount you receive will be larger than the premiums you paid for the policy.
Many life insurance policies, including some term insurance policies, have accelerated death benefits, a provision that allows you to use part of the policy's death benefits and/or cash value under specified circumstances, such as terminal illness or a need for long-term care. When you die, the death benefit of the policy will be reduced by the amount paid out, by the company.
Apart from giving you peace of mind and a dignified old age, life cover remains your companion all through your life. In the event of you death, your loved ones will benefit from it. | 
