The Truth About Selling Your Life Insurance

Have you been entertaining the idea of selling your life insurance? Generally, people cash in their life insurance policy because they can no longer afford their monthly premiums. Another common reason is that they have no dependents. Some policyholders even sell their life insurance with the aim of financing an emergency. Regardless of why you want to sell it, it would be great if you know the following truths about selling your life insurance policy.

  • Most times, life insurance companies would allow you to sell your life insurance if you are 70 years or above with a policy value worth more than $100, 000.
  • You can sell your life insurance on your own or hire a life settlement broker to sell it for you.
  • Most life settlement brokers will try to use some high-pressure tactics to force you to sell your life insurance at a ridiculous price.
  • You are better off selling your life insurance to reputable life settlement providers or hiring a trustworthy life insurance agent to sell it for you.
  • If you are above 70 years, it is better to sell your life insurance if and only if you are sure you don’t need another policy – which usually comes with high premiums.
  • You can decide to borrow money from your cash-account if you don’t want to sell your policy.
  • Your payouts will be taxed if you eventually sell your life insurance policy.
  • Your personal health information could be publicized during the application process.
  • You can sell your life insurance policy only before you are predicted to die.
  • You are in a better position to cash in on your policy if you have a buyer who can not only afford the payouts but also continue to pay the premiums till you are no more.
  • The lower your life expectancy and the premium, the more life settlement providers would be motivated to buy your life insurance at a fair price.