Sell Life Insurance Policy for Cash
Thinking of Converting Your Unwanted Life Insurance Policy into Cash?
Does it really sound like a good idea to sell a life insurance policy for cash? Well, if your needs have since shifted and there seems to be no need for life insurance policy, typically the reply will be a huge yes. Initially, if an individual no longer wished to proceed with their life insurance policy, they had only three to four options. These included:
- Surrender the policy for cash value
- Surrender the policy for paid up
- Allow the policy to lapse
Well, things have since changed and today, you can sell your life insurance policy for cash. Here’s we’ll share why this particular option really makes a lot of sense financially for you.
Naturally, if you sell something, you certainly hope to get what it is worth, possibly something more but nothing less. But before you burst into the excitement that you’ll finally stash thousands of dollars, it’s best to make sure you’ve met all the requirements for being the right candidate for it.
Is Now the Perfect Time to Sell Life Insurance Policy for Cash?
You could be thinking “when is it really perfect and right to sell my insurance policy?” Well, to begin with, mature men and women aged sixty-five or older may qualify to sell their life policy. However, in other cases, they’ll demand that you have at least 72 years with the exception of those with poor health as those may be a little younger than that.
In most situations, the banks, hedge funds and most of the third party institutions which buy these policies set the requirements.
A good number of them will insist that the life insurance policy be well over $250,000, have a permanent insurance policy or a convertible term life product.
You will really be left amazed seeing how much you can be offered for your policy. In fact, if you meet the mentioned criteria, you will certainly attract many offers, which will eventually result to a huge lump sum payment.
Reasons why people wish to sell life insurance policy for cash
First off, when you have a life insurance policy that you certainly no longer need, it makes more sense being able to get a cash settlement in excess of the existing surrender value by selling it to an investor.
It’s a valuable source of liquidity for policy owners who have needs such as family situations, bankruptcy, investment objectives, tax consequences, wealth planning, retirement, plus many other issues.
Still, some will use the cash settlement to apply for a new contract that attracts more death benefit than the present one.
How it Works when you Sell a Life Insurance Policy for Cash
To begin with, it’s important for you to note that your life insurance policy can be determined by a life settlement broker who will submit your policy to multiple investors, eventually generating a huge lump sum payment for you.
Once you begin the process, it might take anywhere between 16-20 weeks for it to come to completion. You will be subjected to health exams plus a number of other procedures in order to clearly ascertain the market value of your policy.
The lump sum is determined on cases by case basis.
By purchasing the life insurance policy, the buyer will become the new policy owner. They will take over the premium payments and later collect the entire amount of the death benefits.
So there you have it, folks. Life insurance brokers are committed to helping you achieve the best value when you want to sell life insurance policy for cash. Besides, you’ll be served with respect and integrity and they’ll be pretty happy to discuss your policy matters. So go right ahead and speak to a licensed life insurance agent today about how you too can sell a life insurance policy for cash.