How to Sell Life Insurance Policy for Cash

Get Money by Selling Your Life Insurance Policy

Many people who are entering or already in retirement age,may consider selling their life insurance policy.They sometimes wonder how to sell a life insurance policy for cash because, as one gets older, servicing previously purchased life insurance policies may become too expensive.As a way out, more and more people are resorting to life settlements. Life settlements, are actually smart arrangements and simple as well.In this arrangement a company that is interested buys your policy at an agreed amount of cash and in return, the company is named as the beneficiary. If you have a life insurance policy with a cash value or a convertible term policy you can sell it to these companies at a good amount of cash.

What People Want to Know about How to Sell Life Insurance Policy for Cash

This arrangement has been embraced by many people who can no longer afford their life insurance premiums. Instead of cancelling their policy or letting it to lapse, they have opted to sell it to settlement companies. Such companies will most likely pay you more than the cash value of your policy,something which is healthy for you pocket.You can use this money for any projects including buying another policy.

Curious About Which Types of Life Insurance Policies You Can Sell for Cash?

There are a variety of life insurance policies such as whole life, convertible term, variable etc. As long as your policy is an individual life policy and is convertible,it can be sold for a cash settlement.It is always good to consult with a licensed agent before selling your policy so that you can make informed decisions.When you think its time to go,you can then sell out your policy by following the right process.

First Steps to Selling Your Life Insurance Policy for a Cash Settlement

The first thing you should do is to determine your current and future cash needs and financial condition.If you are considering to let your insurance policy lapse because of hardships in raising future premiums,getting a quote is the best option.Consulting with a financial adviser at this stage is a wise move.They will help you understand your financial condition and what the future means for you.

After evaluating your financial status you can contact your insurance company to determine if you can cash out your policy or if the policy has an accelerated death benefit and whether there are any penalties involved. Based on the type of policy and contract involved, it may be possible to surrender the policy for a net cash surrender value or make use of your company’s accelerated death benefit option.Accelerated death benefit may give you more money compared to what you get by selling the policy.

Once your insurer has confirmed that the policy can be sold, you should always look for competitive quotes,before surrendering your policy.Make sure you are conversant with all the contract details and confirm that the life policy can be sold, assigned and transferred to a new buyer. The potential buyer will need all this information.

You can now search for a buyer of your life insurance policy at this stage. Ensure that the buyer is trustworthy and someone with whom you are comfortable.The buyer should give competitive price under favorable terms and condition.Once the deal is sealed, the buyer gives you the money and in return become the beneficiary of your policy.

Life resettlement is a healthy arrangement for many.  I hope this answered your questions about how to sell a life insurance policy for cash.

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