If you are a senior or have a life-threatening illness, it can produce a lot of anxiety to think through aspects like finances. However, there could be some pressing financial needs that cannot wait, such as medical bills or living expenses. Life insurance settlements or viatical settlements can give you cash for your policy so that you can use the funds to take care of bills that need attention. When you sell your life insurance policy, you typically will be selling to a private entity or investor, who will then own the policy themselves. They will pay your premiums and will then receive the payout when you pass. Selling your policy can give you needed financial freedom, but as with all important decisions, there are some things to research beforehand.
When to consider selling a life insurance policy
The people who are most eligible to sell a life insurance policy are those who are facing a life-threatening illness or those who are elderly and no longer need the policy for its original purpose. If you are a senior-aged individual, you may want to consider selling your policy if you can no longer afford the premiums or if you find that you no longer need the life insurance policy. If you have a life-threatening illness, you may want to sell your policy to help fund medical bills, alternative treatments, or pay living expenses. In either case, most companies require you to have a life policy of $100,000 or more.
What to consider before you sell
When you initially purchased a life insurance policy, you made a large financial investment. One of the biggest things to consider before you sell is whether you still need your life insurance. If you can still pay the premiums on your life insurance and will leave behind beneficiaries who may need the money, it would behoove you to keep the policy. Of course, one key note to consider when selling your life insurance policy is whether the seller you are conducting business with is reputable and trustworthy. Luckily, there are reputable settlement companies out there, and they can work with you to discuss your options. One such company is American Life Fund, which offer resources to help you throughout the process, including an instant quote on your policy’s worth. For more information on how you can get immediate cash for your policy through American Life Fund, visit americanlifefund.com.
How much can you make from selling your life insurance policy?
The short answer to how much you can make from selling your policy is, “it depends.” The long answer is that your payout is different based on the death benefit, your life expectancy, and the policy’s premiums. If your life expectancy is longer, it means a potential buyer would have to pay more premiums before receiving your policy’s benefit. However, if you have 24 months to live or less, your policy may be worth much more. When you sell your life insurance policy, you can expect to make more than what you would receive if you surrendered the policy, but less than the amount of your death benefit. No matter what options you choose financially, make sure you are working with a team or company you trust and that you do your own independent research on your options.