Selling A Term Life Insurance Policy

Term policies are the most common life insurance policies on the market. If you’re over age 70 or living with significant health impairments, consider selling your term life insurance policy for a single cash payment. Get a quote before allowing your policy to lapse.

Check Your Term Policy!

Get an immediate quote for your policy.

Is your Term policy convertible?

If so, converting a term policy will likely result in increased premiums. Find out if your policy is convertible to a permanent product.

Buyers Can Convert Your Term Policy

In many cases, buyers will convert your policy into a permanent product, assuming future premiums if a policy is sold.

Are you Over Age 75?

Term policies can rarely be converted after age 75. However, we've seen it happen before. Don't let this stop you from getting a quote today.

Thinking about Selling a Term Life Insurance Policy?

When you first got a life insurance policy, it’s unlikely you were imagining how it would play out in a life settlement. You probably didn’t know you could eventually sell a life insurance policy. 

Now that you’re looking into it, you may have found you have a term life insurance policy. This is different from a whole life insurance policy or a permanent policy. However, you can still get a life settlement from selling a term life insurance policy. You just need to convert it first.

What is a Term Life Insurance Policy?

Selling a Term Life Insurance Policy

Term policies make up the majority of the life insurance market. This is because term policies have affordable monthly premiums. They are the perfect investment strategy for younger investors focused on starting a family. This helps free up extra funds for other investments. 

It’s also a good deal for the insurance companies.  Did you know that 95% of term policies don’t result in a death benefit claim? This is how insurance companies make money. 

So, a term life insurance policy is a temporary life insurance policy. It gives coverage for a predetermined amount of time. Additionally, the premiums may increase over time or stay consistent. The premiums aren’t fixed but as mentioned, it’s an attractive type of policy as the premiums are lower than a permanent policy. 

Can You Sell a Term Life Insurance Policy?

Anyone that is over age 70 or living with health impairments may qualify for selling a term life insurance policy. To do this, your life insurance policy must be a permanent policy or you must convert it before its sale. Additionally, you may only sell life insurance policies with values of $100,000 or more.

Why is Selling a Term Life Insurance Policy a Good Idea?

Your life insurance policy is meant to protect your family from unexpected hardship. But what you might not realize is that you can also use that long-term investment to tend to the needs of the present.

If you’re struggling with expenses, you have the right to sell your term life insurance policy. In selling a term life insurance policy, you lose the long-term benefits. But you can gain the valuable resources you need to contend with the day-to-day demands of your life.

Converting a Term Life Insurance Policy

Selling a Term Life Insurance Policy

You have to meet certain conditions to convert your policy. However, most insurance providers allow you to purchase a conversion rider

You can purchase a conversion rider when you first buy your policy. Keep in mind each rider comes with an expiration date. You may need to re-up your rider if you think you’ll want to convert before selling a term life insurance policy.

Conversions are easiest for individuals between the ages of 65 and 70. Many insurance providers are reluctant to allow individuals older than 70 to change their policies. Still, this varies from provider to provider. 

Policy Conversion Obstacles

There are roadblocks that make converting your life insurance policy more difficult. For example, you may not qualify for permanent life insurance. This can happen even if you originally qualified for term coverage. Check with your insurance provider to learn more about the qualifications you need. 

What’s more, there are certain policy riders that make converting your coverage more difficult. Two such riders include accelerated death benefits and long-term care.

An accelerated death benefit ensures that you have the financial means to care for you and your family. A long-term care rider, similarly, ensures that you can afford long-term care if you’re faced with health deterioration.

These two riders add unique benefits to your life insurance coverage. Although they may diminish the value of your policy’s sale. If you don’t have these riders, however, and you need quick cash, selling your life insurance policy may be your best option.

Life Settlements With Windsor

At Windsor, we have over 20 years of experience consulting term policy owners.  If you’re considering selling a term life insurance policy, determining eligibility yourself can be a challenge. 

In many cases, it’s easy to miss a small detail that can make a big difference.  Term policies tend to have different kinds of restrictions and fine print that are unique to each policy. Thus making selling a term life insurance policy a challenge. So, for this reason, it’s best to speak with a life settlement professional who can help you be certain of your options.

Transforming Your Life Insurance Policy: Assessing Your Options

If you have a life insurance policy, you always have the means to contend with your future on hand. You have the option of selling a term life insurance policy to a variety of different buyers. These buyers, in turn, can give you the cash and benefits you need to see to your day-to-day responsibilities.

The amount you receive in your sale will not be as much as you would get if your family waited for the eventual payout. Even so, the option to convert your policy and transfer it to someone else remains available.

Don’t go into a term life insurance policy sale alone. Before you complete a sale, discuss the details with an experienced professional. You can also use a life settlement calculator. Together, you can determine the value you should place on your policy.

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