When to consider selling your policy

Determining if this is the right choice for you should be carefully discussed with family and financial advisors. There are certain standards that the policy and the insured must meet in order to qualify.

In 1911, the United States government ruled that life insurance policies are personal property. This outcome opened up the possibility for policies to be bought, sold, and traded, just like any other high-value asset. In times of financial hardship, a person can now choose to liquidate their policy and turn it into cash.

This lump sum could then be used to:

  • Pay for assisted living
  • Fund cancer treatment
  • Pay medical bills
  • Pay premiums on another existing life insurance policy
  • Fund a business
  • Pay off tax liability/debt
  • Purchase an investment
  • Fund the purchase of a lump sum income generating annuity

Funds for medical expenses

We will walk you through the numbers behind the numbers so you have the information you need to make an informed decision. Read more about using a payout to pay for your medical expenses.

Your lifestyle needs have changed

As the insured moves through the various stages of life, they may find that they no longer have a need for a life insurance policy.  As long as they qualify, a life settlement could be a valid option.

Here some examples of lifestyle changes that could encourage a sale of a policy:

  • Divorce
  • Retirement
  • There is no longer an estate tax burden
  • The beneficiaries no longer need the proceeds

The Big Picture

There are a lot of different scenarios where this option can help someone turn their insurance policy into a living benefit. Take a look at our case studies to see how the choice to sell can be a profitable way to alleviate costly premiums on a no longer needed policy.

Abacus Life is dedicated to making sure you receive the most from your policy and your entire experience is fast and seamless. We will work with you every step of the way to ensure you feel comfortable with the process.

Please contact us with any questions. 1-800-561-4148