Life insurance policies, often overlooked as valuable assets, can provide a significant financial resource when circumstances call for it. Abacus Life, a leading buyer of life insurance policies, understands that your life insurance policy is a versatile financial tool that can be leveraged to secure your financial future. If you’re contemplating selling your life insurance policy, here are five essential tips to consider:
Understand the Financial Benefits
In 1911, the United States Supreme Court ruled that life insurance policies are personal property. This groundbreaking decision granted policyholders the right to consider various options for utilizing their policy as a financial asset. Common scenarios that prompt policyholders to explore selling their policies include:
Affordability Concerns: Rising premiums due to market changes or poor policy performance can strain your budget. Unexpected financial challenges like mounting medical bills, legal issues, assisted living costs, or tax problems may also lead to difficulty in premium payments. In such cases, surrendering or lapsing the policy can result in the loss of all premium investments. Selling your policy through a life settlement can often yield a cash amount significantly higher than the policy’s surrender value.
Changed Life Circumstances: As life unfolds, your insurance needs may change. Life events such as divorce, retirement, the elimination of an estate tax burden, or beneficiaries no longer requiring policy benefits may influence your decision to sell your policy.
Timing Is Key
Deciding when to sell your policy requires careful consideration and discussions with family and financial advisors. Specific standards, both in terms of the policy and the insured’s qualifications, must be met to proceed with a life settlement. To assess whether this is the right choice for you, speak to our live representatives at (800) 561-4148.
Evaluate Your Financial Goals
When you’re contemplating selling your life insurance policy, it’s crucial to have a clear understanding of your financial objectives. Assess how the funds from the life settlement can align with your goals, whether it’s securing your retirement, addressing medical expenses, or pursuing new investment opportunities. Planning and prioritizing your financial needs will guide your decision-making process.
Explore Policy Conversion Options
When assessing your life insurance policy’s potential, don’t overlook the option of policy conversion. This feature allows you to transform your existing policy into a new one, which might better align with your current financial goals. It’s a way to make the most of your policy without necessarily opting for a life settlement. Consider how policy conversion can work in your favor.
Partner with Abacus Life
As a leading buyer of life insurance policies, Abacus Life is dedicated to ensuring you receive the maximum value from your policy. We provide a seamless and efficient experience, guiding you through every step of the process. To begin your life settlement journey, the first step is qualification.
Find out if you qualify to sell your life insurance policy by using our simple online calculator or speaking with a settlement specialist at 1-800-561-4148. We are eager to assist you in making the most of your life insurance policy.