- Premiums are unaffordable
- You need a new car or home
- You want to meet your medical bills
- You don’t have dependents/beneficiary
- Your partner or spouse is no longer associated with you
- The policy is going to lapse
- You are over insured
- You have upcoming retirement to plan for
- Have any unexpected expenses upcoming
If you want to surrender the policy you can consult your financial advisor, he will help you surrender the policy, but for life settlement that is selling your policy, you need to consult a licensed life settlement company. The companies or providers are well experienced in the insurance industry and are well aware of the legal, financial transactions, so they give their professional advice and helps gather the list of the potential customers willing to buy your insurance policy. There are many factors involved in deciding the offer price like age, health, type policy and amount of premiums paid. Usually, the price is less than a death benefit, once the policy is sold, you will get a lump sum amount more than surrender value, death benefits will be claimed by the new buyer and the buyer will be responsible to pay future premiums.
The whole process is cumbersome and time-consuming so it is important to choose a company that will efficiently deal with your case; some companies are so expert that they close the deal within a week but usually do the entire work takes 3-4 months. So keep that in mind.
Can I Sell My Life Insurance Policy?
Of course, you can Sell Your Life Insurance Policy only if it is eligible meaning by which the age of the policyholder should be more than 65 years, the face value of the policy should be at least $100,000. The policyholder owing Universal Life, Whole Life, Term, Convertible Term, Joint, and Second-to-Die life insurance policies make the best candidates for life settlements. Health conditions are of the main reasons; if you are facing terminal illness your policy is eligible for sale.
How much money will I get?
Since the life settlements are not regulated by a central authority so the prices are entirely dependent on the age, health condition, type of policy, amount of premiums and life expectancy of the policyholder. The determination of the price is evaluated based on the number of the premiums required to be paid and the amount of the death benefit. Applying a formula life settlement company finds out the amount that can be paid to the policyholder while still yielding a good amount of return on investment.
Sale price also depends on the death benefit, the higher is death benefit, the more are the chances to get a good deal.
If the premiums are comparatively low to the death benefit, payouts are likely to be on the higher side.
Another thumb rule is lesser is the life expectancy of the policyholder, better can be the sale price as the buyer will get death benefit soon without paying many premiums.
The Benefits of Selling Your Life Insurance Policy
Selling your policy can save you from getting into unwanted debts; you can easily pay your medical bills and incur household expenses without worrying about the finances. It is like an asset you can sell and use money the way you want. You would love the money that you have been paying so long in the form of premiums coming back to you.Selling your life insurance policy could be a wise decision to secure your future and liquidate your life insurance policy.