As you grow older and your circumstances evolve, your needs change. Your life insurance policy needs are no exception. At some point, you may realize you no longer need the safety net your policy provides, or you may no longer be able to afford to pay its increasingly high premium.
Fortunately, you can adapt to the change without losing everything you’ve invested in the policy throughout the years. Chances are, we can help you settle your life insurance policy today.
Can I Sell My Life Insurance Policy?
Technically, anyone with a life insurance policy can sell it, assuming he or she finds someone to buy it. The main consideration is finding the buyer who wants it. Generally, you have a better chance if you’re at least 65 years old.
Buyers choose based on two factors: life expectancy and premium payments. They only profit when they collect on a death benefit. The sooner they can do so (and the less they have to pay in premium payments), the more attractive the policy will be. That said, your policy may still have significant value if you’re younger but your annual premium payments are relatively low.
Can I Sell My Term or Whole Life Insurance Policy?
The type of policy you have is one big factor in whether you can sell it. This will also impact your chances of finding a suitable buyer. The most frequently purchased policies include universal and whole life policies. Term policies with the option to convert also do well.
The reason for their popularity is because they often attract the highest returns. Universal and whole life policies are permanent, but they accrue value. Often, buyers find universal policies more appealing because of their flexible premium payments.
Term policies can usually be converted into whole or universal policies until the term expires. However, most carriers impose limitations, such as age restrictions, on when and if they’ll convert the policy.
Why Should I Sell My Life Insurance Policy?
As long as your life insurance policy is marketable, selling it may be a good idea for a number of reasons, including:
- Your mortgage is paid off, so you don’t need the cushion.
- Your children are all grown and have become self-sufficient.
- The premium payments have become too expensive.
- You have unexpectedly high medical bills.
- You’re no longer subject to the estate tax.
- You no longer have a need for the policy for any reason.
Settling a life insurance policy that’s become more of a burden than a benefit can help you overcome these challenges. Most importantly, it will help ensure that you walk away with something to show for your investment.
If you’re now saying to yourself, “OK, I want to sell my life insurance policy. What now?” — that’s where we come in. To learn more about your life settlement options, give us a call and speak with one of our experts today.