3 Steps Guide to Sell my Life Insurance Policy

 

You’re short on money. You have a life insurance policy you may no longer need. One option is to sell it to a third party for cash. Should you do it?

 

Life settlements are an excellent option for millions of seniors who need or prefer cash under their current circumstances rather than the eventual payment of the full death benefit.

 

The amount of a life settlement is usually many times greater than the cash surrender value.

 

Can I sell my Life Insurance Policy

 

Around the world, millions of seniors have been selling unwanted or no-longer-affordable policies and in the United States alone, seniors are receiving more than $7 million a day from life settlements, and over the next decade, life settlements will average about $3 billion a year.

Also, financial planners and advisors have a fiduciary responsibility to advise clients about life settlements.

Anyone considering selling a life insurance policy in this way needs to consider if it is prudent financial planning.

When I should Sell My Life Insurance Policy

 

If you don’t need your life insurance policy any longer, are having a difficult time keeping up with the premium payments or could just use the money, a life settlement is definitely an option worth considering.

 

The concept is really designed for single people or those with partners who are not financially dependent.

 

Life policies have been traded by the terminally ill in the US for many years.

 

It is called ‘viatical settlements’.

 

The word ‘viatical’ comes from the Latin word viaticum, which means the holy communion taken before death, or provisions for a journey.

 

People who no longer need their life insurance policies are the ideal candidates, such as parents whose children are financially independent and who have no debts or other financial obligations to worry about.

 

If there’s no one who would truly benefit from the life insurance payout if you were to die, perhaps you no longer need the policy.

 

The typical life settlement user is aging couple short on money for medical costs or long-term care.

The strategy has practical application when a policyholder no longer needs the insurance coverage, believes the capital to be more valuable while they are living, and who has significant liquidity concerns that cannot be addressed through other assets.

How Much Money I can get from my Life Insurance Policy 

How much money you can expect to get with a life settlement will depend on your age, health and life expectancy, the type of insurance policy, the premium costs and the value of your policy.

Most sellers generally get 20 to 30 percent of the death benefit.

3 Steps Guide to Sell my Life Insurance Policy

 

If you’re interested in a life settlement here are some things you should know:

Shop around: To ensure you get the best deal, get quotes from several brokers or life settlement providers. Also, find out what fees you’ll be required to pay.

Tax implications: Life settlements are also taxable if the cash surrender value of the policy exceeds the premiums paid on it. This can be very complicated, so be sure to consult a tax advisor. Also, be aware that receiving money from a life settlement can affect eligibility for public assistance programs like Medicaid or food stamps.

Be cautious: Life settlements are not regulated in every state so be careful who you deal with. Make sure the broker or life settlement firm you choose is either licensed in your state or is a member of LISA.

Get your Life Insurance Quote Today!

Life settlements have made the lives of many much more comfortable, for those who have recognized the full potential of their policies and found the secondary buying market.

It is evident there are substantial benefits in selling a life insurance policy, instead of lapsing or surrendering it to the insurance providers.

With the above information, seniors can now have peace of mind in the knowledge that they know the values of their insurance plan, should they choose not to continue to pay premiums or find those payments unaffordable.

Get your quote TODAY!

Call 813-964-7100 or 716-565-1300

info@mintcofinnacial.com

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