How to Sell Your Life Insurance Policy Successfully

You may have purchased your life insurance policy when you were thinking of securing your family's future if you die. Now, for some reason, you can no longer afford to pay premiums. Or you may need to handle an emergency, and you're considering selling your life insurance.

The process you undergo to sell life insurance policy is known as a life settlement.

How Does Selling Work?

When you sell your life insurance, you give up your policy and the associated death benefit to a buyer in exchange for funds. The buyer then takes over your premium payments and becomes the beneficiary of your death benefit.

The funds you will receive from cashing out a life insurance policy will be more than the total cash value of the life policy but will be less than the death benefit. The exact amount depends on the following:

· The cash value,

· The premium value,

· Any unpaid loans against the insurance, and

· Your life expectancy based on age and health factors.

Investors will pay more to a seller with a shorter life expectancy.

It is also vital for you to know that universal or whole life policies are worth more to investors. Term life policies that have the option to convert to permanent insurance policies will sell well too.

How to Successfully Sell Your Policy

#1 Get Professional Help

If you have decided on a life insurance buyout, you will need to get a licensed life settlement broker who can represent you or a life settlement provider who can offer you a reasonable buyout.

You can schedule a policy evaluation. During the session, the professional will assess your unique situation. Michael Brohawn of Your Life Insurance Solution conducts a free policy evaluation.

#2 Review All the Financials

Write down all the financials, including tax implications and any other fees that may come up. Then ensure that you understand every detail.

If you feel pressured into cashing out on a deal, you can call for a time-out to consider all your options.

#3 Get Multiple Offers

Finally, don't settle for just any buyer that you encounter. You should shop around to get the best value for your life insurance policy. Then review offers from several buyers. Know the costs involved in each offer and compare them against your policy's cash surrender value.

If you are ready to sell your life insurance policy, the team of experts at Your Life Insurance Solution can provide you with professional help.

  

Concise Guide To Choosing A Life Insurance Policy

A life insurance policy is an agreement between you and an insurance company. You pay premiums to the company. In exchange, your beneficiaries receive an agreed sum after your death.

Choosing a policy can sometimes be daunting. But it's vital to consider the following before making your choice:

Benefits Involved

Insurance plans have different benefits. Term life offers only a death benefit to the beneficiaries. Universal life insurance is more flexible. You can borrow against the policy, use the cash value, take advantage of the investment options, or decide to sell your life insurance.

Insurance Cost

What policy can you afford at the moment?

Universal and whole life are more expensive but offer more flexibility and benefits.

Term life is affordable for young people who are in good health. But that doesn't make it the cheaper of the lot. A term policy has no cash value and expires after the term ends. To renew it, you'd have to pay higher premiums. Besides, if your health declines, your payment increases.

Whole life insurance, on the other hand, has set premiums for the duration of the policy or throughout your lifespan.

Using cost as a criterion to pick your insurance policy shouldn't be dependent on how much you initially pay for it. You'd need to consider premiums payment, payouts available, convertibility, and how much you'd be paying for the policy in the long run.

Period

You may need life insurance for a short period. If you have a limited budget but need a large amount of coverage, getting a term life policy might be the best option.

In this case, coverage stops at the end of the term.

To help you not lose money if you're still alive by the time the insurance lapses, purchase a convertible term policy. You can convert it into permanent insurance a few months before it expires. Then, consider cashing out life insurance policy after the conversion to get your money.

Another option is to opt for combination policies. They enable you to cash in life insurance and get a payout when you’re still living. Such circumstances could include ill health or an accident.

How Much You Need

Your reason for purchasing a life policy will determine how much you’ll need. If you’re trying to create a financially secure environment for your family after you’ve passed away, consider several personal factors.

You may need to bump up your coverage if you have young children or massive debt. If you have estates and investments, on the other hand, you may only need little insurance.

Aim to choose an insurance policy that suits your needs and can comfortably replace your income if you pass away.

6 Reasons to Sell Your Life Insurance

Having a life insurance policy is an excellent investment. It gives you peace of mind and acts as a cushion for your beneficiaries' future.

So, why would there be any reason to sell your policy?

Most people sell their life insurance because they believe that the money they'll get at the moment is more vital than the death benefits for their dependents. On the surface, that might look self-serving. But there could be cogent reasons why you would sell your insurance. Here are some of them:

#1 You No Longer Have Dependents

You might have bought insurance to mitigate financial hardship for your dependents in the event of your death.

But if your beneficiaries have passed away or they have become wealthy, they won't need the benefits from the life policy. In that case, selling life insurance policy for cash might be the more reasonable action to take.

#2 Your Beneficiaries Have an Alternative

If you saved up more money in the bank or you have other investments like stocks and bonds, then your beneficiaries will have alternatives. Your spouse and children may not need protection from the policy.

It might make sense to sell your insurance and use the money for something more vital.

#3 Your Term Policy Is About To Expire

Instead of letting your term life insurance lapse, you can convert it to a permanent policy and sell it.

You can only convert your term policy if you have a conversion rider. You’ll also need to take action about six months before the term ends.

#4 You Have a Financial Emergency or You Need More Cash Now

Getting older attracts more bills. You might have to boost your retirement income, or you have increasing medical bills to pay. You may even need to invest in a project that yields higher dividends.

If you have a terminal illness or you need to pay for long-term care, you could cash in life insurance to help you.

#5 You’re Overinsured

You might have more coverage than your dependents need. You and your beneficiaries might even have several high-dollar policies.

If you have more insurance than your beneficiaries would need for financial coverage after you’ve passed away, consider selling one policy.

#6 You Can No Longer Afford the Premiums

Retirement could reduce your monthly income and put you on a monthly budget. Other circumstances could also lead to a tight financial situation.

At this point, paying premiums for your life policy or doling out funds for premiums that increase with the age of the insurance becomes expensive. You can sell your life insurance to get an upfront payout and eliminate premium payments in the future.

There are several reasons why you might want to sell your policy. Make sure your reason is compelling and consult a professional to get the best sales possible.

Borrowing Against Your Life Insurance Policy

A permanent life insurance policy, either universal or whole life, usually has a cash value that accumulates interest over time. You can borrow against your permanent life insurance policy based on its cash value. The policy will then become collateral for the loan.

If you have a term life policy, on the other hand, you cannot borrow from it. It has no cash value outside the death benefit and expires at the end of the stated term.

Is It A Good Idea To Borrow From Your Life Insurance Policy?

Although a life policy should provide money for your loved ones when you die, you can borrow against its cash value while you are still alive. When you borrow from your life insurance, you are essentially borrowing from your own money.

Borrowing is entirely different from when you sell your life insurance policy. Selling gives your beneficiaries no future rights or benefits. But borrowing still leaves them with a policy.

Borrowing from your permanent life insurance may be an excellent option to consider:

· If you plan to pay back the interest and cash value within a reasonable amount of time

· If the amount you want is less than the cash value of the policy

· When you need a loan for a brief period at a low-interest rate

· During an extreme emergency

What Happens When You Borrow From Your Permanent Life Insurance?

Your borrowed loan remains tax-free since it is not an income. You will, however, pay back with interests. But this repayment schedule is easy and flexible.

If you do not pay back the loan when due and you die, the amount of the loan and the interest accrued will reduce the death benefit. If the outstanding amount reaches the size of your insurance cash value, the policy will lapse.

How Much Can You Borrow?

You can borrow as much as 90% of your total cash value. Borrowing against your insurance means you can only take out a partial amount of the cash value and keep your policy active.

This payout is unlike a life insurance buyout where you can cash-out on everything.

How Do You Borrow From Your Policy?

If you have an interest in cashing out a life insurance policy, you will first need to contact your insurance company. They will help you determine the right payout means and also monitor your balance to help you keep up with repayments.

Conclusion

Borrowing against your life insurance policy is only possible if you have been paying a premium for some time. If your insurance is new, it might take some time before you can borrow against it.

The cash out time will depend on the size of your policy, the amount of premium you pay, and your insurance company's policies.

Ways to Use the Cash Value in Your Life Insurance

Cash-value life insurance has life coverage and an investment account. Besides the death benefit allocated to your beneficiaries after you pass away, the policy has a cash value, which is money that grows with tax-free interest.

The cash value is for your benefit. If you don't utilize it before you pass away, it goes back to the company. Then, your dependents only get the death benefit.

You wouldn’t want such a significant sum to go to waste. Instead, you can use your cash value in different ways.

Increase the Death Benefit

If your cash value is a large sum and you don't need the money, why not use a paid-up addition. The purchase increases the death benefit, leaving a more substantial amount for your beneficiaries. That way, you won't lose the cash value you've built up.

Not all insurance companies offer this option. Be sure to check with your insurer before you proceed.

Take a Loan

You might have high-interest loans, poor credit, high-interest advances, or payday loans. In that case, borrowing against your life policy is the best option - you cash in life insurance at a low annual interest rate.

You're not obligated to pay the money back within a specific timeframe because you're borrowing your money. You also don't have any underwriting requirements, and the loan history doesn't appear on your credit report.

However, the loan accumulates interest. The value of the borrowed amount will also be deducted from the death benefit if you pass away before paying the outstanding.

Surrender Your Life Insurance

You can surrender your policy to the insurer for the accrued net cash value. The net value is lower than the total cash value. Plus, you give up your death benefit in the process.

Your insurance company will also charge surrender fees, which further reduces the cash value. Additionally, you'll pay income tax on the amount received.

Sell Your Policy

You could sell your life insurance if your beneficiaries are financially secure or the premiums have become too expensive.

When selling life insurance policy for cash, the company pays you an amount that’s higher than the cash value but lower than the death benefit. Before the sales, it’s advisable to go through an independent consulting service like Your Life Insurance Solution so that you can receive the highest payout possible.

Conclusion

You can only use the cash value of your life insurance before you pass away. As it accumulates, consult an insurance professional like Michael Brohawn and have a concrete plan of how you’ll put it to good use while you’re alive. If you don’t use your cash value before you die, it ends up with your insurer.

5 Benefits of Owning Life Insurance

Life insurance plans are usually purchased if you have young children or beneficiaries who depend on you financially. In the event of your death, proceeds from the insurance can help take care of any need that may arise.

Some benefits of owning a life insurance policy include:

Financial Protection

Life insurance provides your beneficiaries with financial protection when you pass on.

It will protect your family from any financial hardship that occurs after they lose you. They’ll be able to pay for a mortgage, tuition, and any future expenses. It can even take care of immediate needs, such as expenses that may arise from your funeral.

Also, if you ever have a debt before passing on, the policy will help your family settle your debt.

Taxation Benefits

Life insurance policies have tax-free death benefits payout. Your beneficiaries won't pay taxes for the money they will receive.

The insurance plan also has a tax-free cash growth value. When you buy a policy, you don’t have to pay tax on the interest your account earns grows. If you decide to borrow from your cash value, you can do that tax-free in most cases too.

Cash-out

When you purchase a permanent life policy, your cash value grows as you pay your premium and collect interest over time.

Apart from your beneficiaries having access to your policy when you die, you can sell your life insurance for cash while you are alive. This life insurance buyout is a good idea if you decide that you no longer need the policy. You can also borrow from the cash value if you have a need but do not wish to give up the entire insurance.

Flexibility

If you buy universal life policy you can adjust your premiums to suit your financial needs. For a term life insurance with an option to convert, you can extend the insurance to include lifetime coverage.

Some policies also allow you to take out part of your death benefit if you become terminally ill and require expensive treatments.

Affordability

Depending on the policy you purchase and your situation, life insurance can be affordable. Term life is usually cheaper than the whole or universal insurance.

Younger and healthier people also get lower rates.

Conclusion

The primary goal of having a life insurance plan is to save up for your beneficiaries. But cashing out a life insurance policy might become necessary if you have an urgent need. No matter how things turn out, life insurance will always benefit you.

Why Should I Review My Life Insurance Policy?

Too often, policy holders overlook their life insurance policy reviews. Home and car insurance policyholders review their policies regularly – at least once annually. On receipt of the renewal notice, policyholders quickly note changes over the past year. Such routine checks update you on your policy status. You can then decide whether or not to continue with your policy, modify, or switch to something different.

Sadly, many are rather lax about their life insurance. Given its long-term package status, it’s easy to procrastinate. The consequences may be costly if necessary reviews delay till policyholders’ demise. Ideally, book an appointment with your company rep or agent regularly.

Why You Should Review YourLife Insurance Policy

We experience change as we go through life. Regular policy updates help detect loopholes in your policy. Without regular reviews, you may soon discover you’ve been financing an irrelevant coverage. Besides, policy review may expose policy updates and, as well, help you take advantage of recent industry-based developments.

When Should You Review YourLife Insurance Policy?

Experts recommend annual life policy review. However, life insurance policy is most necessary after certain life events, including:

Income Change

If lately you landed a good-pay job after college or got a job promotion, consider a policy review. Conversely, job loss may also inspire a review. In either case, a life insurance policy reevaluation modifies your policy to mirror your current financial condition.

Change in Health Status

If a significant health condition improves, congrats. Ideally, such health shifts should reflect on your health insurance premiums and life insurance rate. Often, such discounts are substantial.

Reversely, when one’s health deteriorates, it may be impossible to increase personal coverages. However, you may increase group coverage via work where insurability proofsare irrelevant. Either way, a policy review is a win.

Change of Relationship

If you just got married or divorced, consider an insurance review. Your coverage should reflect your new life. A newly divorced, on the flip side, may not need as much cover any longer.

Change of Housing

Did you offset your mortgage recently? Your life insurance needs may have become leaner. Contrarily, if you acquired a new home, your liability, upon passing, increases.

Either status needs to reflect on your life insurance – hence, a review.

Change of Beneficiary

If your policy beneficiary passes on or, for whatever reason, needs replacement, you’ll need a policy update. The same holds if you wish to add a new recipient.

Due-For-Expiration

As your policy approaches expiration, quickly consider a review. If there are no significant changes, you may want to compare different brands.

Summarily, if you ever get stuck, an expert life insurance policy consulting company will lead you through the options.

Can’t Pay Your Premiums Anymore? Here Are Your Options

Just as you do for other types of insurance policies, you have to keep paying your premiums to access coverage on your life insurance policy. However, sometimes life happens. People stumble on difficult life circumstances such as the loss of a job or sudden ill-health that could render them incapable of meeting up with paying their premiums.

When this happens, your first option is to read the content of the policy agreement you signed carefully. This knowledge will give you a good understanding of what your choices are to enable youto make an informed decision.

However, there are other effective ways to go about it. As Michael Brohawn of Your Life Insurance Solution says, “You can stop paying premiums and still make the most from it.”

What Can You Do When You Can No Longer Pay?

Have you found yourself in a situation where you’re unable to continue paying your premiums as agreed, here are some things you can do?

Just Don’t Pay Again

This approach is probably the most direct option that quickly appeals to many policyholders. When you simply stop paying your premiums, your policy lapses, and you won’t have to pay anything again. However, most people are usually unaware that this option makes you lose money, which you could potentially make from your policy. If it’s possible to stop paying premiums and still make money from it, who wouldn’t opt for that instead?

Formal Cancellation

You’d have to formally notify your insurance company of your decision to discontinue the policy. The good news is that, depending on your insurance company and your agreement, you can recover unused premiums. To do this, you have to inform them before the specific date you want the policy canceled and request a refund of your unused premiums. Most insurance companies would grant this request. You won’t be able to regain all your money, but you won’t lose everything either.

Cash Out the Policy

This method is the most profitable option of the three. Cashing out life insurance policy means you give out your access rights in exchange for money. Life insurance policies often have their equivalent cash values for which a policyholder can sell their policy. However, to sell life insurance policy for cash can be a very complicated process, and most policyholders end up losing money without proper guidance.

To make the most out of selling life insurance policy for cash, you can consult with advocates who will be your intermediary and assist you with negotiating with buyers for the best price possible.

Your Life Insurance Solutions is one company that has made it their business to help you get the most out of your life insurance policy.

Conclusion

If you ever find yourself unable to meet up with your premium payments or you’ve decided to stop for other reasons, it doesn’t all have to end in a complete loss. You can stop making your premium payments and cash out your policy at the best price possible.

  

6 Things You ProbablyNever Knew About Your Life Insurance

Life insurance deserves every households’ attention. But as with every finance-based concept, life insurance policies attract widespread skepticism. Lots of persons have built wrong perceptions of life insurance.

You need adequate information to make the right life insurance policy decisions. Here are six things you probably never knew about your life policy.

1. Life Insurance Is Not Always Expensive

Life insurance premiums increase as you add new features. Yet, some coverage forms are incredibly cheap. While smokers, for instance, may pay higher, a healthy non-smoking young adult may pay as low as $20 monthly for a $300,000 20-year level term coverage.

2. You May Change Your Life Insurance Policy

Sadly, many life policies do not reflect their holder’s current life insurance needs. Life insurance needs are dynamic. They change over time. Changes in health, income, marital status, among others, may require a life insurance policy review. Besides, one may also consider a life insurance buyout if they prefer cash to continued coverage.

Life happens. So, you may need a life insurance reevaluation when any significant life event occurs.

3. Life Insurance Offers Financial Assistance ToThe Disabled

Some insurers pay benefits before the policyholder’s death. Some packages may payout if a holder gets critically ill. Invasive cancer, heart attack, and stroke are typical examples of such health concerns. Such coverage aims to help sick policyholders settle medical and other essentials.

Even if your plan does not support a buyout on medical conditions, you may consider cashing out a life insurance policy.

Logically, some bills are better used to improve health than as death benefits.

4. Get Back Your Money If You’re Faithful And Truthful

Life insurance companies may give back all your premiums. This practice is obtainable if you stick through to the end of your policy span without a claim. Knowing you will get your investments if you outlive your life insurance can be reassuring. Besides, knowing you can sell life insurance policy for a lump sum is, in itself, soothing.

5. Life Insurance For Long-Term Care Insurance

Long-term care insurance isn’t cheap. A rider and life insurance policy combination may afford you this coverage. Besides, some offers combine long-term care and life insurance in a single package.

Whether it comes as a specialty or a rider, long-term care benefits slash death benefits. Including long-term care policy to your life insurance plan may cost you extra. However, it makes better economic sense than obtaining two packages. If you need long-term care coverage but doubt its usefulness, consider this complimentary combo.

6. Premium Waiver

Many life insurance policies recognize premium waver riders. Such provisions may also come handy for disabled holders. The rider strikes out premiums for persons with specific illnesses or injuries. As with living benefits, policyholders hardly ever use premium waivers. They often forget even after explanation at coverage purchase.

Conclusion

Now that you’re aware of some life policy perks you probably didn’t know, consider scheduling a call with the advisor at Your Life Insurance Solution, LLC, to discuss your options and the term package(s) that best suits your long-term needs.

 

5 Critical Things to Consider Before Cashing Out Your Life Insurance

Lots of individuals keep asking, "Can I sell my life insurance policy?" The simple answer is yes, provided it has a cash value. Cashing out your life policy is often a challenging thing to do because there is a possibility it might lead to other problems.

Notwithstanding, here's a guide on the five critical things you must consider before cashing out your life insurance.

Tax Consequences

Cashing out your life insurance will come with tax implications. However, the tax will depend on the amount of cash you're taking from the policy.

If your life insurance cash out equals the amount you have paid in, then it will not be taxed as taxing such payment will amount to double taxation. But if you're cashing out more than you've paid in, then you must be ready to incur additional tax charges.

Imposed Charges

To discourage insurance policy owners from selling their policy, insurance companies impose specific fees. You must check with your life insurance policy provider to find out the level and type of charges that selling your life policy will attract.

Generally, the charges depend on the type of life policy you have, the cash paid into the insurance policy, the interest added, and the amount of the benefits.

Reduced Death Benefit

Selling your life policy will affect the coverage of your insurance. As a result, it will reduce the death benefits the beneficiary will receive. If you choose to cash out the entire money in the insurance policy, then the life policy will eventually be canceled. The good news, however, is the beneficiary will receive the full death benefit without attracting any income tax on the payment.

Maximum Withdrawal

When you choose to receive cash for life insurance, the maximum amount you can receive is calculated as the total cash in the policy minus the charges and other fees associated with selling your policy.

The total cash is the sum of all the money you have paid into the life policy via premiums. It is also worth mentioning that the accrued interest does not form part of the cash value.

Your Dependents

People buy insurance policies for different reasons. One of those reasons is to reduce their family's financial burden when they die. Before you decide to sell your insurance policy, you must find out if your family is capable of handling your funeral arrangements, and also able to avoid being in any financial danger.

Conclusion

Overall, selling your insurance policy comes with several risks and benefits. So, before you decide to sell your life policy, ensure you consider the points above. If you still find cashing out your life insurance policy as the best option, then excellent. However, you may decide to explore other options.

6 Things You ProbablyNever Knew About Your Life Insurance

Life insurance deserves every households’ attention. But as with every finance-based concept, life insurance policies attract widespread skepticism. Lots of persons have built wrong perceptions of life insurance.

You need adequate information to make the right life insurance policy decisions. Here are six things you probably never knew about your life policy.

1. Life Insurance Is Not Always Expensive

Life insurance premiums increase as you add new features. Yet, some coverage forms are incredibly cheap. While smokers, for instance, may pay higher, a healthy non-smoking young adult may pay as low as $20 monthly for a $300,000 20-year level term coverage.

2. You May Change Your Life Insurance Policy

Sadly, many life policies do not reflect their holder’s current life insurance needs. Life insurance needs are dynamic. They change over time. Changes in health, income, marital status, among others, may require a life insurance policy review. Besides, one may also consider a life insurance buyout if they prefer cash to continued coverage.

Life happens. So, you may need a life insurance reevaluation when any significant life event occurs.

3. Life Insurance Offers Financial Assistance To The Disabled

Some insurers pay benefits before the policyholder’s death. Some packages may payout if a holder gets critically ill. Invasive cancer, heart attack, and stroke are typical examples of such health concerns. Such coverage aims to help sick policyholders settle medical and other essentials.

Even if your plan does not support a buyout on medical conditions, you may consider cashing out a life insurance policy

Logically, some bills are better used to improve health than as death benefits.

4. Get Back Your Money If You’re Faithful And Truthful

Life insurance companies may give back all your premiums. This practice is obtainable if you stick through to the end of your policy span without a claim. Knowing you will get your investments if you outlive your life insurance can be reassuring. Besides, knowing you can sell life insurance policy for a lump sum is, in itself, soothing.

5. Life Insurance For Long-Term Care Insurance

Long-term care insurance isn’t cheap. A rider and life insurance policy combination may afford you this coverage. Besides, some offers combine long-term care and life insurance in a single package.

Whether it comes as a specialty or a rider, long-term care benefits slash death benefits. Including long-term care policy to your life insurance plan may cost you extra. However, it makes better economic sense than obtaining two packages. If you need long-term care coverage but doubt its usefulness, consider this complimentary combo.

6. Premium Waiver

Many life insurance policies recognize premium waver riders. Such provisions may also come handy for disabled holders. The rider strikes out premiums for persons with specific illnesses or injuries. As with living benefits, policyholders hardly ever use premium waivers. They often forget even after explanation at coverage purchase.

Conclusion

Now that you’re aware of some life policy perks you probably didn’t know, consider scheduling a call with the advisor at Your Life Insurance Solution, LLC, to discuss your options and the term package(s) that best suits your long-term needs.

Life Insurance Policy: 3 types of Life Insurance Policies Described

Presently, the insurance industry pushes to create more personalized insurance coverage for life insurance policyholders. The truckload of life insurance policies offers insurance seekers an excellent list to select from. But, too often, these numerous options leave prospective policyholders confused about which to choose. 

That said, if, for whatever reason, you regret your current policy, selling life insurance policy for cash is a pleasant way out. Then, if you decide to go for another policy, there are dozens of them, and this article discusses the three most common types.

What Are the Different Types of Life Insurance Policies? 

You may consider these life insurance policies: 

Term Life Insurance

Of all life insurance policies, term insurance is most common. Thanks to its affordability and simplicity.

Term life insurance allows policyholders to purchase a cover for a specific years-span — usually between one and 30 years. If a policyholder dies within the defined duration, the insurance company compensates beneficiaries.

This insurance plan allows people to get covered when most needed.

Term life insurance has two types:

· Level Term Life Insurance

With this plan, your premium and benefits are static over the specified period.

· No-level term life insurance

No-level payment changes as the years count. There’s either a premium increase or a benefit decrease.

Since the insurance coverage decreases over time, the package should cost less.

Sadly, the differences are insignificant, if any. Hence, many prefer the level term option.

Whole Life Insurance Coverage 

Whole life insurance falls under permanent life insurance policies. As long as policyholders do not default on payments, whole life insurance — as the name suggests — offers a whole-life cover. The premium is usually fixed throughout the policy’s lifespan. 

This insurance plan is best-fit for persons who wish to commit to a static budget over the policy’s validity span. 

That is, at 70 years, the holder will still make the same premium amount paid when he started at 25 — regardless of factors such as health condition. 

Interestingly, whole life insurance policy adds interest to your cash value, which grows continuously over the years. 

Beneficiaries get paid whenever the holder dies.

Universal Life Insurance 

Universal life insurance is also a permanent life insurance policy. However, whole life and universal life insurance have two primary differences; namely:

· Flexibility

Unlike whole life, with universal life, you can decide the amount of your payment that goes for the death benefit and what portion enters your cash-value account.

· Expiration

While whole life insurance beneficiaries receive benefits even if policyholder reaches 170, universal policies expire.


95, 100, and 121 years are standard maturity dates for universal life insurance policies among insurance companies.

At expiration, a policyholder gets paid, and that ends the insurance contract. However, you may, at any point, decide to sell your life insurance and cash out. 

Conclusion 

Primary among other factors to consider when selecting a life insurance policy are flexibility and convenience. What works for your boss at work may be financially inconvenient for you. Ask Google for the best insurance companies and compare offers. 

Noteworthily, health, age, and insurance types determine the availability of life insurance policies and payable premiums.

Remember — regardless of your live coverage option, you can always cash in life insurance, whenever.

A Straightforward Guide to Selling Your Life Insurance Policy

People purchase life insurance for different reasons. While some purchase it to protect the financial stability of their family, others buy a life plan to leave cash for their loved ones when they die. The good news for some, however, is that insurance policies can be sold. 

If you need urgent cash or you're no longer in need of your life insurance, selling your policy is an easy way to get some money. But before selling your policy, you must make sure to understand how selling life insurance works and its consequences.

Selling Your Life Insurance Policy? 

To sell life insurance policy refers to a situation where a policyholder sells the insurance policy and the death benefit associated with the life policy to another investor for an agreed amount.

As a result, the buyer takes over the payment of the premiums and get to receive all death benefits from the policy when you die. The process of selling a life insurance policy is also known as a viatical settlement or a life insurance settlement.

Who Can't Sell their Policy? 

It's worth mentioning that not all life insurance policies provide benefits to the buyer. For example, if your policy's life expectancy is long, buyers may not be willing to pay you cash and then pay premiums for up to 20 years again.

A viatical settlement is intended to be a win-win arrangement for both the seller and the buyer. Here, we have identified a few circumstances where your insurance policy may not have any value.

● If the death benefit is small

● Long life expectancy

● Very high premiums

● If it does not have a conversion option

How Does Selling a Life Insurance Policy Work? 

To have a life insurance buyout, you must first find a suitable buyer. Although you can carry out the process of cashing out a life insurance policy on your own, we recommend you use the services of an insurance settlement professional. 

Information You May Need 

When selling your life insurance policy, you may be required to provide certain information like:

● Your personal information including your medical history

● Years of premiums remaining

● Type of insurance policy

● The policy's cash surrender value

Points to Note before Selling Your Life Insurance Policy 

● Since insurance is a regulated industry, you must ensure you deal with only licensed insurance settlement professionals.

● Shop around to get an offer with the most value. Never be in haste.

● Consider the financial and tax implications of selling your policy.

● Selling your insurance policy may attract fees.

Conclusion 

If you're no longer in need of your life insurance policy, then selling it for cash can be an excellent option. Nonetheless, we recommend that you first explore other alternatives and ensure you follow our detailed guidelines in this article before closing a sale deal.

The Short Guide to Reviewing An Insurance Policy

Financial plans should include insurance policy reviews. This periodic review is essential. The easiest way to organize and review insurance policies is to create a one-page policy summary for each policy.

Most insurance policies have vital information on the declarations page or “policy summary.” That’s where to find most of the information you want to review. You can create your own using Excel, Word, and even paper. Write down the relevant information in an understandable way that you can recall.

The Basics to Review Insurance specialists such as Your Life Insurance Solution‘s Michael Brohawn suggest reviewing the following basics:

Policy type The type of insurance policy may be auto insurance, casualty insurance, health insurance, life insurance, or long-term care insurance.

In life insurance policy reviews or summaries, specify the type of life insurance policy. It could be term life, universal life, variable life, or whole life.

Insurance carrier In performing the audit, specify the insurance company providing the policy. Keep a handy way to reach customer service or the insurance agent.

Policy Number Know your policy number. You need it when you make inquiries about an insurance policy.

Date of Issue This point is vital in any insurance policy, especially with life insurance policy reviews. Know the date of issue of the insurance because term insurance has an expiration date. However, permanent insurance will feature a surrender charge that may apply if you cancel the policy in the first five years or the first twenty years.

Premium Track your premium and the frequency of payment. For a whole life insurance policy, the policy may be "paid up."

Insured Who do the benefits apply to – a dependent child, your spouse, or you?

Beneficiary Who is the beneficiary in the case of life insurance? You can contact the insurance company to effect a change through a change of beneficiary form. The insurance company will get the proper form (not a will or trust) when you send it back.

Life Insurance Policy Reviews For life insurance, track total death benefit. Also, track any additional riders such as the ability to access the death benefit early as in diagnosis with a terminal illness.

With a term policy, have a reminder of the year the policy would expire. You can then evaluate your options to assess if you still need life insurance coverage.

With life insurance policy reviews, you can track investment performance if your policy has a cash value. Call the insurance company and ask for an “in-force illustration.” This illustration projects how the policy should perform from this point until your life is over.

You may forgo premiums if the policy has done well and will continue so. Otherwise, you may need higher premiums to keep it in force.

Reviewing policies in regular periods can help anticipate these future trends. Michael Browhawn and Your Life Insurance Solutions can help you with more beneficial information about your insurance policies.

What to Do With Your Unwanted Life Insurance Policy

There are various reasons why seniors may think of letting their policy lapse. In some cases, according to Life Insurance Solution’s Michael Browhan, the premiums may not be as affordable as it once was, or there isn’t any beneficiary for the money anymore.

However, if a person had a policy in place before the recent rise in estate tax consumption, they may no longer need to insure the taxes.

No matter the reason, one way to deal with a life insurance policy, you no longer want is to sell it. Investors are willing to pay you cash for it; if you meet specific criteria. They will get the benefit when you die.

Financial planners such as Ashley Foster believe the conversations around cashing out a life insurance policy are somewhat weird. However, when people have issues that hamper regular payment of premiums, or they have no need for insurance, it often makes sense.

Now, the disturbing part is thinking that strangers will benefit when you die. But, it is usually better to sell the policy than simply walking away from it or only getting the surrender value. Planners also give the analogy of a non-performing mutual fund that one owns. No one gives it back to the mutual fund company.

How Do “Life Settlements” Work? The transaction typically involves a company called a life-settlement company. They want to give you cash and take your policy. They relieve you of paying premiums, and as investors, they pick up returns when you die.

The Life Insurance Settlement Association says your life policy holds value for investors if you’re 65 or older, the benefit is no less than $100,000, and it has value to investors.

What Happens When You Sell the Policy? Unless you die, the policy remains active, but premiums are no longer your problem. Once you sell your life insurance, it sits in a blind pool that a financial institution separate from the buyer oversees.

They can only resell your policy along with other policies in a much bigger transaction. Therefore, there's privacy baked into the deal.

Universal or whole-life policies with good cash value often attract life-settlement investors. Term-life policies with the option to convert to permanent insurance are also good investments.

Managing Your Expectations The face value of your policy can be misleading. Don't expect to get it. The settlement is usually above the cash value, but less than the death benefit. The precise offer depends on several factors, such as the premium, cash value, and whether there are loans against the policy.

To maximize proceeds from your life insurance buyout, Michael Browhan can help you all the way.

Why Your Neighbour Sold Their Life Insurance Policy

It is a life insurance buyout or life settlements when a life insurance policyholder trades their life insurance policy for cash.

Most life insurance policies don’t make payouts to living people. But, they may allow you to sell your life insurance policy (while you're still breathing) for a reasonable amount or periodic cash payout.

But, why would anyone ever sell their life insurance policy?

Why Would Anyone Sell Their Life Insurance Policy?

The simple reason people sell their life insurance policy is that they need the cash.

The seller may want to save money by removing the monthly premium payment from their expense column. They may also need the cash payout to help with other expenses. With adequate savings, these people don’t need life insurance anymore. It’s called “self-insuring” when you meet personal savings to meet your financial needs instead of taking out insurance.

In assessing reasons for cashing out a life insurance policy, understand the cash value of your life insurance policy. Like other financial instruments, life insurance grows in cash value.

Term policies also accumulate cash value, which the owner can withdraw. However, the cash value of universal life or whole life insurance far outweighs the cash value of a term policy.

Any life insurance policy can have a cash surrender value. The cash surrender value is the amount that life insurance companies offer policy owners who sell their life insurance. You can make more money from selling your cash insurance than a cash surrender value or cash value may pay out. It's the reason why you should before canceling your policy or cashing in with your insurer, consider a life insurance buyout.

See the Mountain From all Sides

Consider all the financial implications before selling or cashing out. Repurchasing life insurance in the future may cost more than your current policy. Your insurance agent can provide more information on the cost of replacement if you choose to get another policy down the road.

Inevitable Taxes

Your policy type and how you choose to sell may have unique tax implications. Many life insurance sales are tax-free, but some life settlements come with taxes. A lawyer or tax professional can help you assess how it might affect you personally.

Conclusion

In conclusion, it's essential to consider those who'll need your life insurance when you're gone. They may need the money more than you do unless you have urgent medical bills and costs from a terminal illness.

You and your family ultimately decide what happens. Once there’s a green light, you can proceed with a life settlement broker or company if you need to sell life insurance policy.

What is the Process of a Life Insurance Buyout?

A life insurance buyout process is relatively simple. Yet, there are critical steps you need to understand. You also need ample time and if you can, it's better not to rush the process.

To commence a life insurance buyout, consult a trusted tax expert or financial advisor to ensure you don’t encounter an unfavorable sale or get hit with a sky-high tax bill.

If you ever catch yourself thinking, "How do I sell my life insurance policy?”, the standard life settlement process involves this three-step process:

1. In typical life insurance sales, the seller sends all recent medical records along with the life insurance policy to the life settlement provider.

2. The company reviews your details and determines an offer.

3. You decide whether to accept or reject the offer.

The factors that result in a better settlement offer include:

l Lower premiums

l Higher benefits

l Worse health

A life insurance settlement calculates your likelihood of outliving the life insurance policy. The buyer will pay more money if they believe they can get a big payout from a future death benefit.

When a sale occurs, the buyer assumes responsibility for premiums and gets any future death benefit accruing from the policy. It’s simple: the same life insurance policy only has a new beneficiary when you die, and the policy pays.

It’s a viatical settlement when you sell your life insurance policy above the cash surrender value but less than the death benefit value. Viatical settlements are just like other life insurance policy sales.

A Closer Look at the Buyer of a Life Insurance Policy A life settlement company usually arranges the sale process in a life insurance settlement. It does not matter if you own a whole life insurance policy or a term life policy; the same life settlement company can help you through the process.

The insurance company only concerns itself with ensuring that someone pays the premium, not who gets paid. Even after a life settlement company buys a policy, the policy is valid once the payments keep coming in.

Let’s learn why life settlement companies offer cash for life insurance policies. A life insurance settlement transaction transforms a life insurance policy into a financial asset with significant value for the investor. Yet, it provides lucrative cash incentives for policyholders.

Conclusion A life insurance cash out is simple if you talk to the right people and take the right approach. People use life settlement companies to invest in several life insurance policies. To create such a "fund," businesses focus on life settlements to build a bank of policies. The other benefit is to provide the policy seller with the money they need.

How Much is My Life Insurance Policy Worth?

At some point, especially if you own a whole life policy, you may ask how much your life insurance policy is worth. It matters if you are looking to create a financial plan. You’d want to know if anyone would buy it from you, or if it’s a wise idea to sell it.

Several variables give a good idea of a life insurance policy's fair market value. But, most people find it difficult to calculate these variables. A tax or accounting professional with the appropriate experience can help you determine the true worth of your policy.

“Fair market value” is the price that a willing buyer offers a willing seller for a given commodity.

 Why Should I Know the Value of My Policy? If you know how much your policy is currently worth, you can use that for planning your estate. It becomes more critical if your total assets surpass your credit limit for the year.

The monetary value of your policy tells if you will owe gift tax on the sale of your policy. If you plan to sell your life insurance to a qualified buyer, you need to know the precise worth of your policy. It will define what a good deal is for you.

 Making Money From Your Policy There are a few ways to go about selling life insurance policy for cash, even without determining the fair market value. These include:

1. Withdrawing the cash value

You can take the current cash value from a policy, without canceling the policy or taking a loan. If the policy is relatively new, you’ll pay a surrender charge.

2. Using the loan provision

It’s possible to get a loan from your policy out of your accumulated cash value. It comes with interest, but you’re essentially paying yourself. Small loan amounts are the best.

3. Cashing out your policy

You can tell your insurer you no longer want coverage and stop paying your premium. It attracts surrender charges and other costs, including tax, if the amount exceeds the total premiums you’ve paid so far.

Still, there’s a fourth viable option.

 Exploring Life Settlements This option helps you get a far better rate of return when you cash in life insurance. The previous three methods are not as effective as life settlements.

Life settlement brokers buy life insurance policies if you no longer need or want coverage. They don't mind if the policyholder only wants more cash than a surrender, loan, or withdrawal can provide. The broker continues to pay the premium on the policy but earns the benefit when you die.

 Conclusion More people are using life settlements to dispose of insurance coverage they no longer need. They offer up two to three times what a policy loan or withdrawal would offer. Most importantly, they provide the cash you may need urgently.