What’s the latest in life insurance news?
It might just be the fact that you don’t necessarily need it.
According to reputable sources like the financial advisors at Forbes or Investopedia, a life insurance policy is more tangible than you may have previously imagined.
Similar to your home, your car, or your possessions, you can sell your life insurance policy, too—for cold-hard cash. If you can no longer afford to pay for life insurance, you don’t want it, or you’re in a bind and need cash, selling your policy is the option you didn’t know you had.
We make this complex topic seem simple. Keep reading!
Life Insurance vs. Life Settlement
If you’ve landed here today, you know what life insurance is—so what’s a life settlement?
A life settlement is what it’s called when you sell your life insurance policy. You might consider selling your policy rather than letting it lapse or taking out a loan to sustain it.
If you do the former, you’ll receive no payout. If you do the latter, you’ll be putting a Band-Aid on the problem rather than solving it. Surrendering the policy might result in a small payout, but a life settlement tends to be the better choice.
Are You a Candidate for Selling?
If you’ve responded “yes” to any of the situations described thus far, you might be a candidate for a life settlement.
Other qualifications for selling your life insurance policy include:
- Being 65 years of age or older
- Your health status has changed since starting your policy
- Your policy is valued at $100,000 or more
To see if you qualify, it’s best to ask a third party—you may be able to sell your policy even as a healthy senior. Another option is to sell a fraction of your policy rather than the whole thing. That would allow you to leave behind some death benefit.
How to Sell Your Life Insurance Policy
You’ve decided you want to sell your life insurance. Now what?
As mentioned, a third party typically buys life insurance—that could be an investor or a financial broker.
You might work directly with a buyer or with a company that acts as a middle man, but doing the former means fewer fees to pay on your end.
Stay Informed With the Latest Life Insurance News
Is selling your life insurance policy right for you?
If you need an escape hatch for an emergency, can’t afford a policy anymore, or just want to spend the cash during your retirement, you’re a candidate for a life settlement. Selling to a third party is a quick and easy way to get money when you need it. If you think it’s the best move, talk to a financial professional today.
From life insurance news to investing, loans, and more, our site is the place to go for all things finance. Be sure to come back whenever you have questions!
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