2018 Best Option to sell my Life Insurance Policy
If you’re over 65 and your health has taken a downturn, there are some companies interested in buying your life insurance.
Just like any other asset you own, your life insurance policy can be sold to a third party for more than surrender value but less than face value (the death benefit).
As a result, you can use the proceeds for the things that are important to you, like travel, paying off debt or gifts.
A life insurance policy that has been sold is referred to as a life settlement.
Similar to a reverse mortgage, a life settlement can be an extremely valuable tool for seniors looking for additional financial resources in retirement.
What is a Life Settlement?
An individual who has a life insurance policy he believes he no longer needs may be able to sell the policy to investors that are interested in holding the policy as an investment and ultimately collecting the death benefit.
The investors pay all premiums due on the policy after their purchase.
Depending upon the age of the insured at the time of the sale, he may receive a significant percentage of the death benefit amount as the sales price.
You generally have to be over 65 years of age for a financial buyer to be interested and of course, the older you are, the more the buyer will pay because they will expect to collect the death benefit sooner.
How Life Settlement works?
When you sell your policy, the purchaser becomes its owner and beneficiary and the policy remains in force.
The new owner maintains the premium payments until your death and collects the death benefit. In the same way the insurance carrier did when you bought the policy, the purchaser will review your medical record to assess your current health status to estimate your life expectancy to determine a value for a policy.
All things being equal, the longer your life expectancy, the lower the value of your policy.
How much my Life Insurance policy worth?
True economic value is the fairest price for sellers.
Because lifespan cannot be known in advance, it is impossible to know the precise economic value at any given time for any individual policy.
However, prudently determined life expectancies, those obtained by experienced underwriters, provide the best guideline for making an estimate of the policy’s investment “horizon”.
When combining this with other important inputs such as premium amount, face value, discount rate, etc., a reasonable approximation of true value can be determined.
Mintco Financial Life Insurance Settlement
While there must remain severe reservations, they may remain a solution for some, giving access to funds at a critical time.
When time is at a premium, life settlement may ensure money is not.
Contact us today to apply for Life Settlement at
813-964-7100 or 716-565-1300
Email us at info@mintcofinancial.com