Money in the Attic - Old Life Insurance Policies

Money in
the Attic?

We've met with hundreds of people to review their financial situations. We find many that have "money in the attic" they forgot about it. This money is typically parked in old life insurance policies and can be put to very good use. Here are three examples:

You may have purchased a life insurance policy when the kids were growing and you purchased the policy for family protection. Now that everyone has grown up and gone, you have a policy that does not do much for you.

Why not convert it to a single premium policy and get income for yourself? You can get single premium policies that pay as much as 6% which can be withdrawn tax free! That's better than a tax free bond and you still have a death benefit for the heirs.

Here’s another example:

We recently met a gentleman age 80. He had an old policy with not much benefit to it. The cash value was $38,000 and the death benefit was $45,000--not much of a benefit.

He wanted to get some long term care insurance and we showed him how to use this policy to get the long term care insurance without spending a dime.

We exchanged his old policy for a new life/long term care combo policy. He still has just about the same death benefit, but he can also withdraw $88,600 from the new policy to pay long term care. That's because this policy has long term care insurance built in.

Here's yet another way:

We met a woman with a 12 year old single premium policy. It had $168,000 cash value and a $239,000 death benefit. So for each dollar of cash value, her insurance company was only giving her $1.42 of death benefit. We exchanged it for a more modern policy and boosted her death benefit to $472,000. This will produce an additional $233,000 for her heirs. In addition, this new policy allows her to use 40% of the death benefit while she is alive for long term care expenses.

The life insurance industry has changed a lot. The products are better and offer investors more benefits. If you have old life policies, let's review them and see if you have money in the attic that can be put to better use.

Did you find an old insurance policy? Is there hidden money in your life insurance policy? Click here to complete a no obligation worksheet and see if you qualify to sell your life insurance policy.

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