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.
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.
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