Unlike other insurance policies, life insurance is of little use while the policyholder is still living. Some may consider it to be an unnecessary expense for their financial situation, especially if the value of the policy is not as great as it once seemed. Other individuals find themselves overwhelmed with rising premium payments and are looking for alternative outlets. Thankfully, there are options to consider.
The life settlement industry offers a lucrative route for those looking for a way out of their life insurance. A life settlement, by definition, is the financial transaction of an existing life insurance policy to a licensed life settlement buyer, like Abacus Life, for more than its cash surrender value, but less than its death benefit. Your life insurance is considered your personal property, like your house or car, therefore you can sell it just like any other asset. A common misconception is that insurance policies belong to the insurance company, however, that is not the case; they belong to the insured. Knowing and utilizing the true value of your policy today can provide you many financial solutions, rather than until after you pass away.
Therefore, to answer the aforementioned question—yes, you absolutely can sell your life insurance policy.
Whatever the reason may be, whether the premiums become too expensive, money is needed to cover health related costs, other investment opportunities arise, or the beneficiaries no longer require the insurance payout, a settlement can provide a solution that offers a much higher payout than letting the policy surrender.
The process of selling life insurance to Abacus Life is a very painless and simplified process. In order to get started, there are a few qualifying factors to take into consideration. A few to keep in mind include:
1) The insured must own a policy with a $100,000 or more in death benefit. Anything less than $100,000 usually does not qualify, unless there are considerable health impairments.
2) Generally, the insured must be at least 70 years of age.
3) A decline in health from the time the policy was originally issued may help better your chances to qualify, but it is not necessary.
It is highly important to note that each life settlement case is distinctive, so these factors should only be seen as general guidelines. If you are curious to see if you could potentially qualify for a life settlement, reach out to an Abacus representative and we would be happy to talk through the qualifiers with you. Each case is unique, so your chance of qualification could be higher than you anticipated.
If an insured has a terminal illness, they could qualify for a viatical settlement. This type of settlement is designed specially for someone who is terminally or chronically ill, where they can can sell their life insurance policy at a discount from its face value for ready cash. In exchange for the cash, the seller of the life insurance policy relinquishes the right to leave the policy’s death benefit to a beneficiary of their choice—Abacus Life. Usually, the insured uses this payout to cover their medical or treatment costs, however, they can utilize the payout in any way they desire.
Abacus Life has formed a highly specialized team that works each day to help clients see their living benefit, and can work with you to find the most suitable settlement option for you and your personal situation. Selling your life insurance can open up the doors to financial freedom. Reach out to a member of our team directly at (800) 561-4148 to begin the process, and utilize our specialized Abacus Life Settlement Calculator to get an instant policy quote today.