Sell My Life Insurance
Individuals who are considering selling their life insurance policies have options available besides allowing their policies to lapse due to non-payment. Most seniors often asked the question, how to sell my life insurance?
Should I Sell My Life Insurance?
There are likely many reasons why you purchased your life insurance policy. The number one reason was probably to provide a lump sum of money for your surviving loved ones after you die.
But you also might have purchased a policy to allow executors of your estate to pay off your debts when you pass away. Finally, you might have purchased a policy so that you could assign your business partner or your successor as a benefactor who receives benefits.
No matter what your reasons were for purchasing a life insurance policy, you might currently find yourself wishing that you could get out from under it. Perhaps you can’t afford the monthly premiums anymore. But even if you can afford the premiums, maybe paying those premiums just doesn’t make financial sense anymore.
It’s common for financial goals to change through the years. Why should you continue to pay for a financial product that you no longer need, especially if the product is becoming cost-prohibitive?
If you find yourself considering change, and if you want to stop paying for your insurance policy, you have a few options. One of the popular options many are taking advantage of is the fixed amount settlement option.
Options for Ending Your Insurance Policy
Let’s look at your options for ending your current life insurance policy. First, you have the option of refusing to pay for your policy premiums. While you’re never forced to pay your monthly premiums, failure to pay them will cause your policy to lapse. This means that you’ll forfeit your death benefit and your policy’s cash value. All of the money that you’ve invested into the policy will disappear.
The second option is surrendering your policy in exchange for its current cash value. The benefit of this option is that you’ll get to receive a bit of cash. But it might not be as much as you expected, and if you’ve taken out a loan against the cash value, you’ll only receive back what you’ve repaid.
The third option might offer you a better compromise. It involves selling your policy to a settlement company. The benefit here is that you’ll receive a lump-sum payment that’s greater than the cash value, although it will be less than the face value (the death benefit).
If you’ve asked yourself, “Should I sell my life insurance?”, then getting more information from a settlement company might be an avenue to pursue.