Sell Your Life Insurance

Why should I sell my personal insurance policy?

Sell Life Insurance

There are many types of insurances available in the market like life insurance, property, fire, marine, liability, guarantee, etc.  But one of the most common insurance people take is life/personal insurance. Like you have the flexibility to sell your assets, do you know you can also sell your personal insurance policy provided it meets some of the pre-requisites. You need an expert and a professional life settlement company which will help to find a buyer or they will buy your policy if they decide so. A life settlement is basically selling your personal insurance policy to an investor for cash usually they do so when they need money for their personal expenses.

Here are some of the reasons why you should consider “Why should I sell my life insurance policy?”

  • You are dire need of cash
  • You don’t have money to pay future premiums
  • Your spouse expired or divorced
  • Kids are financially independent and you don’t have any dependents
  • You are don’t have a business partner associated anymore
  • In a nutshell, no one could use the death benefit

Then consider getting rid of the policy in a way that you can get cash value more than the surrender value. There are other ways as well to sell your personal insurance policy for cash

  • Sell yourPersonal insurance policy for a viatical settlement

If you are suffering from a terminal illness and need cash for medical bills payment then you sell a policy to the viatical settlement company. Such companies buy the policy or find a buyer wherein lump sum money is given to the insurer and future premiums are paid by the buyer as the life expectancy of the insurer is relatively less. Viatical settlement companies are regulated by NAIC that has set a minimum limit, For example, a person with a life expectancy of less than six months receives at least 80% of the and individual with a life expectancy of less two years receives at least 60% of policy’s death benefit.

  • Sell your personal insurance policy for a life settlement

It is selling the policy because you don’t need it, life settlement companies offer more value than policy’s cash surrender is worth but is usually less than the death benefit. The buyer pays the future premiums and gets the full death benefit when you die. This sale is called a life settlement. There are various legal and financial transactions involved so you need to consult a licensed life settlement provider or broker who guides you, finds a buyer and negotiates on your behalf, of course for some fee. Not all the policy qualifies them to be eligible for a life settlement, here are some pre-qualifiers:-

  • Type of life/personal insurance policy: Universal Life, Whole Life, Term, Convertible Term, Joint, and Second-to-Die life insurance policies, issued by a US-based insurance carrier.
  • Face Value of the Policy: The personal insurance policy that you want to sell should have a face value of atleast $100,000.
  • Age: Insurer should be 65 years of age or above but you can qualify at a younger age depending on other factors.
  • Health: a person suffering from severe health conditions with less life expectancy
  • Accelerate a portion of your policy’s death benefit

In cases of the medical ill insurer, he can withdraw a portion of the policy’s death benefit, this withdrawn amount is reduced from the death benefit but still, you can leave remaining money for your beneficiaries, this is aka living benefits wherein there is a medical condition that reduces the life expectancy of the insurer. This is available on both term and permanent life insurance policies.

  • Surrender the policy to the insurance company for its cashvalue applies only to permanent life insurance policies since term life insurance policies do not gather cash values. The insurance company usually does not grant cash surrenders before three years of the policy. Surrender fees can also be applicable and usually surrender cash value is less than the amount you get from selling the policy. This is only done by the Life Insurance Company.

Prosperity Life Settlements in Sell Life Insurance

You might have noticed by now the various ways that your life insurance policy can help you get cash in an event if emergency or crisis.

There are always tax implications the money received is your income and is liable to taxes, so it’s better to contact your financial adviser for better guidance. If you are not sure what is the best option for you with given conditions selling a policy, surrendering the policy or taking a policy loan, talking to your life settlement provider is advisable.

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