Life settlements can be a great deal – if you go into them for the right reasons and understand the process enough to get a fair deal. Before you enter into a senior life settlement, ask yourself these 4 questions:

1. Will this be enough to cover my debts?

When you sign a life settlement, you are turning over your rights to your life insurance policy in exchange for a lump sum payment. That’s why you need a senior life settlement that’s going to pay you enough money to pay off your debts. Otherwise, your family will be saddled with them after you’re gone – and, without a life insurance payout – they won’t have much to pay them with!

2. Have I already outlived all of my heirs?

If the answer is “yes”, then a life settlement makes perfect sense! After all, life insurance isn’t for you; it’s for your heirs. With it, your heirs won’t have to go into their own debt to pay off all of your final expenses. However, if you’ve already outlived all of your heirs, a life insurance policy is of no value to you. In that instance, a senior life settlement would give you some money now, instead of wasting a life insurance payout later.

3. Is it too expensive to keep paying premiums on my life insurance policy?

Unfortunately, monthly life insurance premium payments can be incredibly expensive – and there’s not a whole lot you can do about it. Try to cancel your policy altogether, and you’ll wind up paying a ton of fees and cancellation penalties that you probably can’t afford. Plus, you’ll lose all of the money that you’re already paid in premiums. It’s no different than taking that money and flushing it down the toilet!

So, what do you do if you can’t afford your life insurance premiums anymore?

That’s where life settlements come in!

With them, you turn all of your responsibilities over to the investor. That way, he’s responsible for making all of the monthly payments – not you. Instead, you can put your money towards more important things, like paying off debts or paying medical costs. And, since you’re getting a lump sum payment out of the deal, you don’t have to worry about your prior premium payments being a complete waste.

4. Where can I find good life settlement brokers?

If you’re afraid to enter into any kind of deal on your own, life settlement brokers can help. Considered to be “middlemen”, life settlement brokers help seniors and investors find life settlements that are fair on all sides. As an added benefit, good life settlement brokers will have the expertise to answer all of your questions as the process moves forward.