Did you know that you may be able to sell your life insurance policy for cash?
Every year, 4.5% of life insurance policyholders stop paying their life insurance and lapse their policy. This means that out of the $20 trillion of in-force life insurance, roughly $900 Billion lapses annually.
If you are a policy owner and the insured is over the age of 65 with a insurance amount of over $100,000, don’t unknowingly throw away an asset you could sell and get money for. There are companies that will buy in-force life insurance policies. This is known as a “life settlement.”
The life insurance policy types most likely to be offered a life settlement are those insuring the life of individuals over the age of 65 with a benefit of over $100,000.
For life insurance policy owners who no longer want, need or can’t afford a universal life, whole life or even a term life insurance policy that can be converted to a universal or whole life policy, a life settlement could be a profitable option.
By selling their life insurance policy, policyholders can receive more than they’d get by surrendering the policy to their insurer or lapsing it all together. For example, it they have a death benefit of $1 million, they might have $100,000 cash surrender value but manage to get $250,000 from a third-party investor. This is money that you can use any way you’d like. The life settlement company assumes all future premium payments and would collects the $1 million benefit at your death.
BuyLifeInsurance.Miami and Decision Tree Financial can help you discover if selling you life insurance policy to a life settlement company is right for you.
If you would like to discuss selling your life insurance policy for cash, please contact us here.