In 1911, the United States Supreme Court established life insurance policies as personal property. Since then, it has been established law that your life insurance policy is just like any other asset, and you have the choice to consider how best to use it for your financial future. Some of the most common reasons you may consider selling all or a portion of your policy include:
Selling Your Life Insurance
As one of the nation’s most experienced and respected life insurance purchasers, we are here to personally assist you every step of the way. Our goal is to inform you of your options, and help you choose the right option for you and your family - whatever that may be.
Our team of experts work every day with people just like you to help them create a financially comfortable future. Reach out to us at 800-561-4148 to get started today!
Why would I sell my life insurance policy?
1. You can no longer afford premiums
Depending on the terms of your policy, changes in the insurance market and poor policy performance could drive up the price of the premiums you pay. Or, you may have experienced an unexpected financial issue, like increased medical bills, legal issues, assisted living costs or tax issues, that is now stretching your budget thin. Any number of factors often force people to stop paying their premiums and surrender a policy or simply let it lapse. In fact, the majority of all life insurance policies lapse, and all the funds invested through premiums are simply kept by the insurance company. The financially smarter option is often to sell all, or part, of your policy for a cash amount that is far higher than the surrender value.
2. Funds are needed to pay for medical care or some other expense.
Faced with financial changes or hardships, selling your policy to recoup the equity you have built over the years is a viable option to fund a large expense. A few examples of this could include paying for assisted living, cancer treatments, medical bills, or premiums on another existing policy. Whatever you may need a lump sum of cash to fund, it is up to you how you spend your cash payment. There are no obligations or qualifications to how the payout is spent. How can a life settlement help you, you may ask? The opportunities are endless.
3. You want to re-invest the equity you’ve built to take advantage of a better opportunity.
You may want to recapture the dollars you have paid over the years into your life insurance policy and invest it in a new avenue. This could include investing in a new business, purchasing a new home, paying off a debt or tax liability, purchasing an income-generating annuity, or taking advantage of another opportunity where the equity built in your policy could better serve you.
4. Your life circumstances have changed
As we move through the various stages of life, many individuals find they simply no longer need a life insurance policy. Life changes, like divorce, retirement, the absence of an estate tax burden, or your beneficiaries no longer needing the policy benefits.
To learn more about if this is the right option for you, use our confidential Online Options Tool or call us at (800) 561-4148 to speak to a live representative.