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Not every policy can be sold. It depends on a few circumstances, as well as the policy itself.
By using our quiz you can find out if your policy qualifies – as well as the value you could potentially sell it for.
If your policy is eligible, you may get paid 25% to 50% or more of your policy face amount (the amount that would be paid during the death of the insured).
For example, if your life insurance covers you for $200,000, you could get paid $50,000 to $100,000 for selling it.
If you sell your life insurance policy, you give up the beneficiary rights. You will get paid immediately, but any money that would normally be paid when you die is forfeited.
We believe that owning life insurance is responsible; however, your life can change and so can your life insurance needs.
There may come a time when you no longer need your life insurance policy, such as when your kids are grown or you have outlived your spouse.
Being able to sell your policy in those instances – rather than cancelling it – is definitely a better financial decision.
Selling your life insurance doesn’t always make sense, and in some cases, you can’t even if you wanted to.
If the reasons why you purchased your life insurance are still in place, such as growing children, then you’re much better off keeping your policy in place.
If selling a policy does make sense, you must still meet certain requirements in order to qualify. Your age, health, and what type of policy does have a direct impact and may prevent you from being able to sell your policy.
True Blue is here to help you get insured. But when that insurance loses it’s usefulness to you, we can help you turn it into cash. We’ll help you find out if your policy Qualifies, and we’ll make sure you get the most cash if you decide to sell.
Can I Sell My Life Insurance Policy?
Yes. A life insurance policy is an important financial asset. The policy represents a claim to a series of potential future cash flows. Because the policy itself can be objectively categorized as an asset, this means that it necessarily ought to have some sort of monetary value.
Could You Potentially Sell Your Life Insurance Policy In Order To Receive Cash Today?
Sometimes you can sell your life insurance policy, and sometimes you cannot—whether or not you can depends entirely upon your personal situation and the specific characteristics of the policy itself. Furthermore, in the instances that you can sell your policy, the amount of cash you will receive in return depends entirely upon what the market is willing to pay for it (which certainly changes over time).
How Do I Know If My Life Insurance Policy Is One That Could Be Sold?
There are a few distinct variables that will directly impact your ability to sell your life insurance policy. Typically, you need to be at least 65 years old and also have a policy that is expected to last longer than you are expected to live. Though predicting the exact date you are going to pass away is obviously something that is beyond both your and your insurance company’s ability to do, this prediction is generally determined by your current health and the average life expectancy for your given demographic.
What Influences The Value Of My Life Insurance Policy?
There are many factors that influence the current exchange value of your life insurance policy. For example: total amount you are covered for, the amount (if any) of equity you have already accumulated, and the amount of premiums you still have due to pay. If the premiums due are relatively low and the coverage is relatively high (typically $100,000 or above), then your policy may be a very attractive asset to certain investors.
Why Would I Want To Sell My Life Insurance Policy?
The most obvious reason you would want to sell your life insurance policy is that you no longer need the coverage and you would prefer to get cash today. If you have outlived your spouse, your children are grown and financially independent, or you no longer have any financial dependents, then it might make much more sense to exchange your policy for cash instead of continuing to pay for unnecessary coverage.
When Should I Consider Selling My Life Insurance Policy?
Begin by asking yourself a few important questions:
How Much Is My Life Insurance Policy Worth?
The current cash value of your life insurance policy is going to be influenced by a number of different factors, so there is no permanent answer to what such a value may be. However, there are a few usually guidelines that might help you be able to get a better idea.
Typically, you can expect to receive about 20%-25% of your policy benefit up front, in cash. This means that if you have a policy benefit that is worth $200,000, then you will be able to ‘cash out’ for somewhere in the neighborhood of $40,000-$50,000.
What Is The Best Life Insurance Policy To Sell?
The Life Insurance Settlement Agency (LISA) recognizes that institutions typically prefer to buy universal life insurance policies with benefits over $100,000 from people who are over the age of 65. However, because there are people outside of these circumstances who are still looking to sell their life insurance policies, there are an ample number exceptions to these general rules of thumb.