Selling Your Life Insurance Policy

By: giriraj

When you sell your life insurance policy, the activity is called as a Life Settlement. It is the activity of selling your life insurance policy to a third party in exchange for a cash settlement in the excess of the policy’s cash surrender value. Selling your life insurance policy is also called as Insurance settlement, Senior settlement, or life insurance settlement.

The solution for elderly seniors

This is a top solution for some folks because they can remove the burden of the insurance premium payments in the future. Meanwhile, the policyholders will get the cash out of the policy, while they are still alive.

The life settlement will be viable if you don’t have any chronic illness or terminal illness. Life settlement’s common reasons are the premiums redundancy, cash for meeting expenses, and other financial reasons.

If you sell your insurance policy when you have a terminal or chronic illness, then it is called a viatical settlement. However, we are going to focus on selling your life insurance policy.

Many seniors are living with life insurance policies that they do not need for the rest of their life. Not to mention that they can’t afford to pay the expensive premium payments per month. Now, there is the best alternative to take. Instead of burning the insurance policies, they can sell it to the alternative buyer. If you are in the same position, you can make a decent cash from your life insurance policy.

So, what happens to the purchasers of your life insurance policy? The new owner will benefit your policy and be obligated to manage the future premium payments. The new owner will collect the full amount of the death benefit when the insured ones die.


The reasons why selling a life insurance policy

  • If you have a chronic or terminal illness. Selling your life insurance policy will financially aid you to treat your illness
  • When you reach above 65 years old, the cash from a life settlement will help you to live a decent life. Not to mention that you will be released from the burden of paying the premiums.
  • Pay your debts with the cash
  • The decent amount of cash that you make from life insurance policy sale can help you raise the investment for your new business
  • Finance your retirement. Now it is important. Chances are you don’t have time and resources to work rigorously. The cash you’ve made from life settlement will help you a lot in your retirement time.
  • Eliminating the premiums, you will be able to allocate your funds to charity, non-profit causes, or other necessities.

Determinant factors of the life insurance policy value

  • Age of the insured
  • The medical condition of the insured
  • Mortality of the insured
  • Loans against the policy
  • The carrier insurance rates
  • The cash value of the life insurance policy
  • The net death benefits
  • The future premium payments to keep the policy optimally

How to sell your life insurance policy

The first and foremost thing you need to do is to find a mentor to help you with the process. There are some aspects that you need to know in the insurance policies industry. Your mentor will help you to figure out with policies you are going to sell. This is also to make sure that you will have the best deals when selling your policy.

If you cannot think of someone to mentor, it is fine. you will be surprised that many agents are ready to help you.

To ease your sales, a broker can come in handy. The broker has good relationships with companies that purchase life insurance policies. Sometimes, your mentor can also be your broker. Life settlement broker will handle the process from the beginning to the end. He or she will handle the paperwork, communicate with the life expectancy experiences, your insurance company, and the potential buyers on your behalf. The broker has the knowledge and skills needed to find potential buyers with your specific policy and situations.

Make sure to choose the reliable and trustworthy broker so that you can make the most of the settlement process. It is important that you are comfortable with your broker.


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