Why would I want to sell my life insurance?
There are many reasons why someone may want to explore the possibility of selling a life insurance policy. The best way to think of it is to understand that life insurance is your own personal property, just like a house.
For example, many Americans find themselves in the position of simplifying their lives once their kids are grown and they enter their retirement years. One way to do that is to downsize from a large house with several bedrooms to a smaller home that is easier to maintain. They make that move by selling the large family house and using the money from that sale to fund the next chapter of life in retirement.
The same principle holds true with your life insurance policy. Perhaps you purchased the policy at an earlier time in your life, but now those circumstances have changed. You bought and paid for it, so you can sell it if you want.
Based on our conversations with thousands of Americans, we’ve heard lots of reasons why people have chosen to sell their life insurance policies.
Here are a few of the most common ones:
Your family doesn’t need the protection anymore
- If your kids are now grown with families of their own, you might not need the income protection anymore.
You can’t afford the premiums
- Life insurance premiums may be competing in your budget with other important personal expenses, such as prescription medications or even grocery bills.
You’re dealing with health issues
- Depending on your family’s financial situation, you may prefer to sell your life insurance policy rather than continue to pay the costly premiums with money that could be directed to your health care bills.
You sold your business
- If you sold a business, you may no longer need to have a life insurance policy in place as protection for your partners or investors – and if the business was paying the premiums on that policy, you may no longer be able to pay for it either.
Your term life insurance policy is about to expire
- Maybe you’ve been making premium payments on a term policy that will be expiring soon, unless you convert it to a new policy; these sorts of policies can be very valuable to sell.
You want more money for retirement
- An unneeded life insurance policy may be able to be sold for immediate cash, producing some retirement funds for you to take that dream vacation or purchase that perfect house.
It’s Your Right to Know …
Until recently, a life insurance policy was only considered to be a valuable asset after you passed away.
Now, as an important asset that can be sold like anything else you own, that same life insurance policy can bring you needed cash right now.
Do I qualify for a life settlement?
To qualify for a life settlement, you’ll need to meet a few criteria.