Insurance Payment Cashouts

2007-03-08 10:33:40

( Insurance )



If you have had your insurance for sometime and something unexpected happened to your finances, it must have crossed your mind to cash out your insurance or sell your annuity payments to an annuity purchaser—a growing industry that gives you your insurance money way before you are hospitalized, demised or retired.

Why Cashout…and When?
Withdrawing your insurance payment or selling your annuity payment may seem the perfect solution when ends do not meet—it is your money anyway, and who knows what can happen to your investment? You may not be able to use your injury coverage, or something might happen to the insurance company.

When you are considering a cashout, make sure that you have a fallback. The best fallback is multiple coverages. If you are covered by more than two insurance protections, you can choose to withdraw or sell any one of them. This will leave you covered by your remaining insurance payments. If you have decided to make the move, assess your reason for cashing out. Withdrawing your insurance payment is only a wise option if you really need the money.

The choice to withdraw is also open if you feel stuck with your insurance payments but you feel that your payments will not benefit you, nor is it benefiting you while you are paying the premiums.

Why Not?
Enjoying your insurance payment way before retirement or the time you will need it is not a viable decision in the long run. Your insurance payment is your security and protection. Cashing it out will take away the security and protection that you have been saving percentages of your paychecks for.

If you have other means of getting the money you need, have realized that you just want the money and do not need it, and if you only have one or two insurance coverages, sail your mind away from a cashout.

A Matter of Choice
Different people have different circumstances that give them varying needs. Keeping yourself covered is a sound choice, but insurance purchasers are there when you decide otherwise. It is your money, anyway, and the wise decision will come from you.


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