Life insurance can hurt or help your financial situation depending on the type you choose and what your circumstances are. There are ways you could potentially increase your cash value from your life insurance plan. However, figuring out ways to do this can be challenging. If your finances are so bad, you find yourself falling into bankruptcy, then talk to a Tennessee bankruptcy attorney to explore your options.
CREATING CASH VALUE WITH LIFE INSURANCE
If you want to grow cash value with your life insurance, then stay away from term life insurance. Amongst the types of life insurance out there, term life insurance may not last as long as you need it. Term life insurance must be purchased in limited intervals of time in which you expect to pass away.
Not passing away within the timeframe of your term life insurance plan means you will lose your death benefits. The type of term life insurance you buy determines this because different ones range from a few years to ten years or 30 years. Level term insurance will keep your death benefit the same but decreasing term plans will decrease your total death benefit each year.
Permanent life insurance will not only cover you until death but also offers increasing cash value. With traditional permanent life insurance, there are higher initial premiums, but you have the chance of receiving cash value in the form of refunds from overpayments. Variable life insurance will let you invest in stocks and money market mutual funds that may grow your cash value.
With universal permanent life insurance, your cash value can build a money market interest. This means you might have the option later to change your premium amounts when leftover money builds up in your account.
WAYS TO SELL YOUR LIFE INSURANCE
Not everyone realizes they can also sell their life insurance. Another name for this is viatical and life settlements. Part of selling life insurance involves finding a life settlement broker or insurance company that will guide you through this. You have the option to sell your term or permanent life insurance.
Life settlements involve selling your life insurance at a lower cost for death benefits and a higher cost for your cash value. A viatical settlement involves the same thing. The difference with a viatical settlement is you have to have a shorter life expectancy. For both, the amount of money you could sell for depends on your age, physical health, premium amount, and death benefit amount.
If you decide these options will not work, you can terminate and surrender your life insurance. All you have to do is terminate coverage with your insurance company and you should receive some amount of cash return.
BANKRUPTCY ATTORNEY IN TULLAHOMA, TN
Dealing with bankruptcy when you need life insurance can make it feel like the world is ending. You do not have to deal with this alone. All you have to do is contact us at Tom Bible Law today at (423) 690-7712 for a consultation. Our team of Tennessee bankruptcy lawyers might help you be able to overcome the bankruptcy you are facing. We are located in the Tennessee cities of Chattanooga, Kingsport, and Tullahoma.