There are numerous institutions that will BUY YOUR INSURANCE POLICY from you. These transactions are called Life Settlements and they have made insurance policies, even some term policies, more of an asset like they’ve never been before.
A life settlement is the sale of an existing life insurance policy to a third party for more than its cash surrender value but less than its net death benefit.
Convertible term insurance can also be sold which would enable the policyowner to get money for the policy as opposed to just canceling or lapsing policy and getting nothing back. This is a complete win for the term insurance policyholder that no longer needs or wants the coverage.
In the recent past, if an owner of a life insurance policy no longer needed or wanted their life insurance policy, he or she could cancel the policy and receive the policy’s cash surrender value as a lump sum or cancel or lapse a term policy and get absolutely nothing back.
There are now institutions (banks, insurance co’s, mutual funds) that will competitively bid on the purchase of an existing policy taking into account the insured’s current age, state of health, etc.
That’s right, if the policyowner qualifies, he or she may be able to “sell” their life insurance policy for more than the cash value if there is any.
This is a complete win for the term insurance policy holders that no longer need or want the coverage. This market has created a potential value to term policies that didn’t exist prior.
Don’t use any agent, broker or website that still claims term insurance is only a commodity and you should only buy the lowest rate possible. If you only focus on price, you may not be able to sell your term life insurance policy for cash someday.
If you’d like to sell your term life insurance policy someday, your policy must still be convertible. It’s important for you to find out how long your term policy is convertible, preferably before applying, if you may be interested in selling the insurance someday.
The ideal term policy to buy is one that is convertible for the full 10, 15, 20, 25 or 30 year guaranteed level term period from an insurance company that has great conversion products.
The way a Life Settlement works is that the institution that buys the life insurance policy becomes the new owner of the insurance policy, pays all future premiums and collects the death benefit when the insured dies.
What are some of the reasons you may consider the sale of your policy?
– The business or personal life insurance policy is no longer needed or wanted
– To pay for healthcare costs
– Premium payments have become unaffordable
– Considering lapse or surrender of the policy
– Change in estate planning needs
General criteria to qualify for a life settlement:
– Insured is age 70 or older
– Policy face amount of $250,000 or greater (there is at least one institution that may buy as low as $50,000 policies)
– Life insurance policy must be over 2 years old and/or out of contestable period.
How much money will I get if I sell my life insurance policy?
– The value of a life insurance policy is determined by a number of factors, including the age and medical condition of the insured, type of insurance policy, rating of the issuing insurance company and amount of premium payments to keep the life insurance policy in force.
How we can help you sell your life insurance policy?
– We can shop your case with all of the licensed life settlement providers to get offers and then negotiate to get you the best offer possible. We’ll handle all of the paperwork to make the process as simple as possible.
You SHOULD NOT consider selling your insurance policy if your beneficiaries are going to need the insurance upon your death unless there is no way you can afford to continue the coverage.
Please click the link below and fill out the form if you’re interested in getting more information about selling your life insurance policy for cash: