How to Sell a Life Insurance Policy
How to Sell a Life Insurance Policy
You have researched your financial options and have decided that selling your life insurance policy is your best option. The question you probably have now is how to sell your life insurance policy.
The first thing we recommend is to see if your policy qualifies. Our simple online form will ask you basic questions about you and your life policy. Once we receive your information, we will review and let you know if you are eligible to proceed with selling your policy.
Steps Involved in Selling Your Life Insurance Policy
The next thing you need to do if you want to sell your life insurance policy is to choose a buyer. It can be a time-consuming process to find a life settlement company on your own but this should not discourage you. Sell My Life Insurance Policy acts as an intermediary between people interested in selling their policies and companies wishing to purchase them. We share your provided information with several potential buyers upon completion of our three-step online form. If interested in purchasing your policy, these companies will contact you to get more information about you and your policy.
After verification of your information, the life settlement company may present you with an offer for your policy. If you accept an offer, the next step is to review and sign the documents and make the company the new owner and beneficiary of your life insurance policy.
Once the policy is transferred, the lump-sum payment is given to you from the buyer in your chosen form of payment. Depending on the company you work with, you can receive the funds from your life settlement in as little as 1-2 weeks. Then, you can use these funds for your retirement, a vacation, to pay for medical costs, or any other reason you see fit. Meanwhile, the company who purchased your policy will continue to make premium payments through the lifetime of the policy.
Factors That Affect Your Qualification and Offer
The minimum age requirement for a life settlement is 75 years of age. If you have a life-threatening illness, you may qualify for a similar financial option known as a viatical settlement. If you don’t have a life-threatening illness, the higher your age, the higher the offer you will receive for your life insurance policy.
The value of your life insurance policy impacts your offer as well. It must be at least $150,000 or more. Of course, higher amounts are likely to fetch you a higher payout.
Buyers also consider the premium payment amounts through the projected lifetime of the policy.
Things to Consider Before You Sell Your Life Insurance Policy
Now that you know how to sell your life insurance policy, you should determine it is the right decision for you by considering the following factors.
- You should not expect to receive the full value of your policy. However, you do receive significantly more than if you surrendered your policy for its cash value. In fact, you can receive 5-8 times more money with a life settlement than with a cash surrender to the carrier.
- It is possible that you may no longer be eligible for some forms of government assistance if you decide to sell your life insurance policy. We recommend that you discuss this with an official from your assistance program before selling your policy.
- You may need to pay taxes on the money you receive from the life settlement. This is a good reason to meet with a tax advisor before you follow through with making the sale.
These are just a few considerations to keep in mind when considering a life settlement. Entering into a life settlement agreement is a safe, easy way to fund your current and future financial needs. If you have large expenses to pay or simply want to benefit from your policy now, a life settlement is the way to go