Sell My Life Insurance Policy
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Most life insurance policies can be sold to a third party, but it only makes sense to consider selling your life insurance if the cash payout is going to be more than the surrender value.
Can I sell my life insurance policy for cash?
If you have a life insurance policy you can sell it for an immediate cash payment – this transaction is formally known as a life settlement.
First, you’ll need to determine whether you are eligible to sell your life insurance policy. Then, you will submit your health records and insurance information to determine the payout. Finally, you’ll sign over the policy to a life settlement provider and receive your money.
People sell their life insurance policies for a variety of reasons. The transaction allows them to receive an immediate cash payment and stop paying monthly premiums. If you’re looking for even more detail, please see our post that further explores selling your life insurance.
Am I eligible to sell my life insurance policy?
The easiest way to check your eligibility is using our life settlement calculator. These are some of the most important factors:
Age/Health: Most people that ultimately sell their policies are 65+ years old or have a serious medical condition.
Policy Type: Universal, whole, and convertible term policies are all great candidates for a life settlement.
Policy Size: The existing policy should have at least $100,000 of face value.
Check out this post by the Life Insurance Settlement Association (LISA) for more information on whether you are eligible to sell your life insurance policy.
Should I sell my life insurance policy?
Here are some of the most common reasons that lead people to consider selling their life insurance:
You can no longer afford the premiums. Selling your life insurance is a great way to avoid letting your policy lapse if you can no longer afford the premiums. Letting your policy lapse can lead to little or no payout depending on the policy type.
You no longer need to protect against income loss. Another reason to sell your life insurance is that you no longer have a spouse or children that would be dependent on the claim in the case of your death.
Your term policy is approaching it’s expiration date. Term policies typically expire with no cash value and expensive replacement costs. You may be able to convert your policy into permanent life insurance and then sell your new policy for cash.
You are looking to supplement your retirement income. Selling your life insurance policy allows you to supplement your retirement income so that you can stop penny pinching and really enjoy yourself.
You are looking to cover unexpected expenses. Finally you can sell your life insurance to help you pay for any unexpected expenses you are facing which may include medical bills or long term care.
How to get started with selling your life insurance policy
There are a number of different types of companies that can help you sell your life insurance policy. Today, the most popular approach includes your life insurance agent, a life settlement broker, and a life settlement provider.
At Mason Finance we believe this heavily intermediated process is both complicated and far too expensive. Broker and agent commissions together can be up to 30% of the total payout.
The other option is to sell your life insurance policy directly to a life settlement provider- the only type of company that can buy life insurance policies.
While this option can be more cost effective, as there are not brokerage commissions, the trade-off is that you will be managing the paperwork and settlement process.
Our life settlement offering was built to make selling your life insurance easy and to help you keep more of the payout. Our process is almost entirely online, dramatically reducing paperwork, and we purchase policies directly, eliminating expensive agent and broker commissions. Get started with an estimate below!