Trending News

Options for Selling a Life Insurance Policy

By Eric Hamilton | Update Date: Dec 03, 2019 12:19 PM EST
Options for Selling a Life Insurance Policy

(Photo : Options for Selling a Life Insurance Policy)

Did you know that you can sell your life insurance policy and acquire cash quickly? This is possible in a variety of ways, which can give you access to greater capital than the amount put into the insurance policy.

A policyholder can sell their insurance policy and its associated benefits to a third-party buyer. The buyer then agrees to offer cash in exchange for that policy, at a fair-value price. The transaction is only completed after both parties are satisfied with the exchange, and the policy is a valid one against the name of the seller.

The payout is generally done within a few weeks and is directly deposited into your account. It's a great way to acquire liquidity in the short-term while paying off medical bills or funding a great travel expedition. You can even fund key aging in place remodeling expenses if you're handicapped and need assistance. You can do anything you want with the cash received, as a third-party organization acquires your policy from you.

Selling your life insurance policy also helps to cement your family's financial stability. It's designed to provide quick access to cash so that you can take care of your obligations. It's also beneficial to opt for selling your policy if you have loans or capital expenses that need to be taken care of. It's a positive investment to engage with if you need cash fast.

It's also beneficial to sell off your insurance plan if you can't meet monthly premium requirements. If you don't have access to liquidity, then the monthly expenses can stack up over time. It's beneficial to sell off your policy so that you're able to cut down on your monthly outstanding expenses. It can become a part of your financial restricting process if you've been unable to handle capital over the years.

Viatical Settlement

A viatical settlement is a preferred option among seniors that are facing serious or terminal illnesses. They can work with a top settlement partner, such as American Life Fund, that can help them gain access to the capital they deserve.

These firms also work through complex financial protocols, prior to engaging with viators. The payout is less than the death benefit, but more than the cash surrender value of the policy. It can help individuals receive better healthcare and access to procedures that they may need immediately.

Through the process of due diligence and extensive research, viatical settlement firms can help relieve policyholders of their financial burden. They can also help fund medical expenses in the short-term, thereby extending the lifespan of the individual. They're the preferred partners of many Americans, working to benefit terminally ill patients.

Senior settlements

Senior settlements work similarly to viatical settlements and can provide access to cash to individuals with valid policies. They're reserved for people above the age of 70 and can leverage the cash acquired for a range of medical procedures. They can even use the cash to fund projects or enjoy a better quality of living experience. 

The main difference between viatical and senior settlements is the current status of the policyholder. Viatical sentiments are generally reserved for patients that have a two-year life expectancy because of a terminal illness. The National Association of Insurance Commissioners mandates that individuals with chronic illnesses with an existing policy may be applicable for a viatical settlement.

It's important to work with a trusted partner in the space of insurance selling so that you're able to get clarity on your payout and the conditions of your policy sale. You should also make sure that you have the right paperwork and that you qualify for selling the policy at this stage.

© 2023 Counsel & Heal All rights reserved. Do not reproduce without permission.
* This is a contributed article and this content does not necessarily represent the views of counselheal.com

Join the Conversation

Real Time Analytics