Things To Do With Old Life Insurance Policies
Things To Do With Old Life Insurance Policies: Unearthing an old insurance policy from your archives may not be a particularly exciting experience. The policy may be worth thousands of dollars but the prospect of upcoming payments may actually prompt you to cancel it out.
Before you do that, take a deep breath and consider the simple question: what to do with old life insurance policy? You’ll be surprised to know that you have a number of options to avail!
Analyze Your Insurance Needs
Before you make any decisions regarding your insurance policy, evaluate your insurance needs thoroughly and this includes assessing your current health status and comparing it to your health at the time when you first purchased it. There are three options for you to consider and we have outlined them for you!
Retain Your Insurance Policy
Once you have assessed your insurance needs and your health status, one of the options that may prove fruitful for you is to actually retain your old life insurance policy instead of tossing it away.
It is possible that after all these years; this policy still caters to your current and future needs and requirements. Furthermore, as much as you want to invest in a new policy, you may not be able to do so as a result of a change in your health or financial status. In such a case, it’s always better to retain your old policy.
It is possible that you might not need your life insurance policy anymore and in that case, it is recommended that you cancel it. You can simply withdraw cash against the payments that you have made so far and use the cash to pay your mortgage or supplement other financial commitments. Keep in mind that this is all possible if you have been making regular payments to the insurance company over the past years.
Transfer Your Old Insurance Policy to a New One
What to do with old life insurance policy when you don’t deem it suitable for yourself anymore? Simply transfer it, tax-free, to a hybrid long-term care/ life insurance policy! This policy is beneficial in the long run as it covers the cost of home health care or a nursing home.
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