Reasons For Selling A Life Insurance Policy

Reasons For Selling A Life Insurance Policy

Individuals or entities (such as companies or trusts) sell life insurance policies for cash for a variety of reasons.  For starters, selling a life insurance policy for cash eliminates the monthly premiums.  The seller also receives compensation for an unneeded asset.  Policyholders have many private reasons as well.

Reasons For Selling A Life Insurance PolicyReasons For Keeping A Life Insurance Policy
Overinsured
Policy No Longer Needed
Premiums Too Expensive
Retirement Planning
Estate Planning
Medical Expenses
Qualifying For Medicaid
Income generated from the sale may negate benefits
Creditors may claim benefits
Eliminates money that would be left to heirs
There will be taxes
You may outlive the added cash

Why Let A Life Insurance Policy Lapse?

Unfortunately, most policyholders won’t even have an opportunity to consider selling a policy for cash.  Most policyholders will simply let the insurance lapse for no value or for only the cash value that the policy has accrued.

 

By letting a policy lapse, policyholders are essentially discarding what could be a valuable asset.  Today, policyholders have better options than letting a policy expire or taking the surrender value from the insurance companies.  A life settlement broker can help get the most out of this valuable asset by selling a life insurance policy for cash to a third party.

 

Things like medical bills and hospice care are getting increasingly costly. Policyholders can look to maximize the value of a policy for all types of expenses.  Proper life settlement brokers make the process of selling a life insurance policy easier on the policyholder.

 

"A life settlement, in our view, is a legitimate transaction made in the financial interest of the policyholder.  There can be valid estate considerations or a change in family circumstances that support the need to sell a life insurance policy.  For example, parents who have had life insurance policies for decades may no longer need or desire to leave death benefits to their grown children. It might be better for the parents to have access to a cash settlement for that policy. The most important concern for a consumer in any insurance transaction is that the consumer makes an informed and educated decision.  That decision should be in the best interests of their families and not necessarily in the best interest of the person or firm who is involved in the commercial aspect of a life insurance transaction." -Michael McRaith, Commissioner of Insurance in Illinois

The Process of Selling Your Life Insurance Policy

For starters, a policyholder should get a quote for their policy.  Policyholders can get an instant quote by using a life settlement calculator.  Similarly, get an instant quote over the phone by calling (866) 878-9611

 

Types of Life Insurance You Can Cash In

Policyholders are encouraged to learn exactly which kinds of policies qualify for life settlements.  Below is a list of popular types of life insurance policies that qualify.

 

Sell Your Life Insurance Policy For Cash

Windsor Life Settlements is a group of life settlement brokers who want to help sell your life insurance policy. Life settlements and viatical settlements are the best way to achieve maximum value from your life insurance policy.

Do you have more questions about life settlements?

Visit the Ultimate Guide To Life Settlements for life settlement resources that are updated regularly.  Free phone consultations are available as well by calling (866) 878-9611