Type “sell life insurance policy” into any search engine and you might be amazed at the amount of online tools and websites that can help you decide if selling a life insurance policy is the right decision. According to the Insurance Studies Institute, nearly eighty-five percent of all life insurance policies never pay a death benefit. Therefore, if you are concerned that yourself or a loved one may need to sell a life insurance policy, it may be time to explore this option.
Most life insurance policies are eligible for liquidation, whether they are term life, whole life, universal, survivor, corporate life, or even trusts. Not all companies who are in the market to help you sell your life insurance policy will take any policy, however, so it is important that you familiarize yourself with the terms of your policy before looking for a buyer.
Life insurance settlements, sometimes called “viatical settlements”, can be beneficial especially when the policyholder is terminally ill or is in a financial bind. Typically, there are certain age or health restrictions involved with a policyholder’s ability to sell without being prohibited or in some cases having to pay a penalty for early withdrawal. In a viatical settlement, a third party, typically a company that is set up specifically to purchase life insurance policies in large quantities will agree to pay out a lump sum of money to the policyholder in exchange for the death benefit. Very often, these transactions are handled by brokers who sell life insurance policies to investors for a small commission.
There are a number of things to keep in mind when selling a life insurance policy, the life expectancy of the policyholder versus its present day cash value for one. From the perspective of the investor, the shorter the life expectancy of the policyholder, the greater the investment since there would be fewer total premium payments required on the part of the new investor before the policy pays out. There is also less likelihood that the policy would run its course should the policyholder survive past the term or expiration date of the policy.
If the outright sale of a life insurance policy seems like too drastic of a decision, there are other options for quick cash if your policy has a cash value. It is possible to borrow against or withdraw cash from most whole life policies. Generally speaking, term life policies do not offer this option, although some insurance providers are getting more and more creative by offering optional insurance add-ons through their term life riders that can mirror many attractive features of a whole life policy while being able to charge the lower premiums more commonly associated with a term life policy.
So if you still think that selling your existing life insurance policy is the right decision, do not hesitate to type “sell life insurance policy” or “selling life insurance policy” into that search engine and start the process. It is not too late to receive an immediate cash benefit to help offset the cost of mounting medical expenses or make sure that yourself or a loved one receives proper retirement care. There are many companies that are readily available online to help take the hassle out of the process. As with any major purchasing decision, make sure you do your homework and read the fine print.
Most life insurance policies are eligible for liquidation, whether they are term life, whole life, universal, survivor, corporate life, or even trusts. Not all companies who are in the market to help you sell your life insurance policy will take any policy, however, so it is important that you familiarize yourself with the terms of your policy before looking for a buyer.
Life insurance settlements, sometimes called “viatical settlements”, can be beneficial especially when the policyholder is terminally ill or is in a financial bind. Typically, there are certain age or health restrictions involved with a policyholder’s ability to sell without being prohibited or in some cases having to pay a penalty for early withdrawal. In a viatical settlement, a third party, typically a company that is set up specifically to purchase life insurance policies in large quantities will agree to pay out a lump sum of money to the policyholder in exchange for the death benefit. Very often, these transactions are handled by brokers who sell life insurance policies to investors for a small commission.
There are a number of things to keep in mind when selling a life insurance policy, the life expectancy of the policyholder versus its present day cash value for one. From the perspective of the investor, the shorter the life expectancy of the policyholder, the greater the investment since there would be fewer total premium payments required on the part of the new investor before the policy pays out. There is also less likelihood that the policy would run its course should the policyholder survive past the term or expiration date of the policy.
If the outright sale of a life insurance policy seems like too drastic of a decision, there are other options for quick cash if your policy has a cash value. It is possible to borrow against or withdraw cash from most whole life policies. Generally speaking, term life policies do not offer this option, although some insurance providers are getting more and more creative by offering optional insurance add-ons through their term life riders that can mirror many attractive features of a whole life policy while being able to charge the lower premiums more commonly associated with a term life policy.
So if you still think that selling your existing life insurance policy is the right decision, do not hesitate to type “sell life insurance policy” or “selling life insurance policy” into that search engine and start the process. It is not too late to receive an immediate cash benefit to help offset the cost of mounting medical expenses or make sure that yourself or a loved one receives proper retirement care. There are many companies that are readily available online to help take the hassle out of the process. As with any major purchasing decision, make sure you do your homework and read the fine print.
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