How to sell a life insurance policy for cash

Many policy owners don’t know it, but a life insurance policy is an important asset that can be sold for cash. If a policy no longer meets your needs or has become unaffordable, you have more options than simply stopping premium payments or turning it over to the insurance company. Instead, you can sell your life insurance policy to a third party for a generous cash payment. selling your policy may better suit your current and future financial needs and help you benefit from your policy for as long as you live.

This transaction is known as a life settlement or, in some cases, a viatical settlement, and often results in a payment of greater value than the cash surrender value of your policy.

Reading: How to sell a life insurance policy for cash

A man reading about selling his life insurance policy with Lighthouse Life

how does a life agreement work?

A life settlement is the sale of a life insurance policy for its market value. In a life settlement transaction, the policyholder sells insurance to a third party and, in turn, receives a lump-sum cash payment that is, on average, 4 or more times the cash surrender value of a policy , according to the National Association of Insurance Commissioners. the third party purchaser will assume responsibility for future payments as well as ownership of death benefits. In certain cases, he may be able to keep a portion of the death benefits.

Once the sale is complete, the money is yours to spend as you please. There are no restrictions on how you use it, since life insurance is considered your personal property. many people choose to use this money for health care costs or retirement expenses, but you can decide to put it toward savings or even future travel. you can decide how this money will best serve you and your loved ones.

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Most people who qualify for life settlements are over the age of 65 and have a policy with a face value of at least $100,000. you can find more details about eligibility requirements on our life settlements page. Most qualifying policies are whole or universal life policies, but there are cases where term life insurance policies may qualify as well.

If you have been diagnosed with a chronic or terminal illness, you may also be eligible for a viatical settlement. viatical settlements have stricter eligibility requirements, but can quickly generate financial resources for medical and other expenses during difficult times.

what are the pros and cons of selling a life insurance policy?

Selling your life insurance is an important decision and you should weigh your options to reach an informed conclusion. Don’t forget that there are many trusted professionals available to answer your questions and help you get the best result.

There are many advantages to life settlements, especially if you’re one of nearly half of Americans worried about running out of money in retirement. find a list of pros and cons below.

advantages:

  • large cash payment
  • stop paying premiums
  • more valuable than canceling or canceling your policy
  • flexibility to spend the payment as you wish
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    cons:

    • Your beneficiaries will not receive the policy’s death benefit
    • tax liability potential
    • a living settlement payment could make you ineligible for medicaid or other financial assistance
    • how do you start with a life agreement?

      The first step in selling your life insurance policy is finding the right people to work with. you need professionals you can trust to keep your best interests at the forefront. life settlement providers must be properly licensed and aware of the necessary rules and requirements.

      some questions to start vetting the right partners may include:

      • Are you licensed by state insurance departments?
      • What measures do you take to protect my personal information?
      • How long is your average sale?
      • At lighthouse life, we strive to exceed all standards by being completely transparent regarding all fees and transactional requirements. we are here to defend you and help you make the best decision, even if it means a life settlement is not the right decision. We help our clients throughout the process, including assistance with forms and approvals. Most policy owners who work with lighthouse life receive life settlement funds in about 45 days.

        If a life settlement seems right for your family, take the first step and get a free estimate or call lighthouse life at 1-866-676-5115.

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