Life insurance exists primarily to give you peace of mind that your family will be safe. But as the circumstances of life change, you may find yourself wondering how to get rid of an insurance policy that you don’t really need or that has premiums you don’t want to pay any more. If you’d rather spend your money making memories on a History Has a Name adventure than on a monthly bill on an insurance policy, you’re likely wondering if you can sell your policy once and for all. Here is a breakdown of what you need to know.
Can I just surrender policy to the insurance company?
You can surrender your policy to the insurance company, but you’re not going to get anything like what’s it worth. Instead, you’ll get what’s known as the cash surrender value. The cash surrender value is determined according to the premiums you’ve paid.
Whenever you pay a premium, some of it goes towards your eventual death benefit while the rest goes into an investment account. The more premiums you’ve paid, and the longer they’ve been invested, the greater the cash value of your premium will be. Yet, however great that cash value is, there is a way to get more.
Can I sell my insurance policy for cash?
With a company like Sell My Life Insurance Policy, you can get more for your life insurance policy than the cash surrender value. Instead of reaching out directly to just one company that buys policies, you can compare offers and get the best deal for your policy.
Once you’ve come to an agreement with a company that wants to buy your policy, you get paid in one lump sum. This money is then yours to use to pay off debts, check some things off your bucket list, or even buy your dream home.
Is it complicated to sell a life insurance policy?
If you attempt to sell the policy on your own, the process can get a bit complicated. You’ll want to compare companies and quotes and do a fair amount of research to find out if you’re getting a fair settlement. If you work through an intermediary, though, much of the confusion goes away.
The intermediary company helps you understand if you’re eligible to sell your policy, then it sends you information to multiple companies. This means you get several offers and can tell quickly who is offering you the best deal.
How do I know if my policy is eligible to sell?
There are a few requirements you have to meet in order to be eligible to sell your life insurance policy. For one thing, you can only make a life settlement if you’re at least 70 years of age. You also need to have a policy worth $100,000 or more.
It’s also important to consider how many payments you’ve made. If your life insurance policy is fairly new, you may not be able to get it sold. Last, if you have a terminal illness, there are different rules that apply.
What can I do with my policy if I have a terminal illness?
No matter what your age, if you are terminally ill, you can sell your life insurance policy in what’s known as a viatical settlement. A viatical settlement lets you sell your policy quickly for a tax-free settlement.
In order to qualify for a viatical settlement, your doctors must affirm that your life expectancy is two years or less. You can use the money to put your family in a better position, pay medical expenses, or just to live life to the fullest right up until the end.
Whatever reason you have for selling your insurance policy, your policy is an investment you’ve been paying into for years. If you need money, this could be the best option for you and your future.