Sell Your Life Insurance Policy For Cash.
"There are institutions that will BUY YOUR INSURANCE POLICY from you. These transactions are called Life Settlements and they have made insurance policies, even some term policies, more of an asset like they've never been before."
A life settlement is the sale of an existing life insurance policy to a third party for more than its cash surrender value but less than its net death benefit.
Convertible
term insurance can also be sold which would enable the policyowner
to get money for the policy as opposed to just canceling or lapsing policy
and getting nothing back.
Historically, if an owner of a life insurance policy found that the policy was no longer needed due to changed needs or circumstances, the owner could cancel the policy and receive the policy’s cash surrender value as a lump sum or cancel/lapse a term policy and get absolutely nothing back.
There are now institutions (banks, insurance co's, mutual funds) that will competitively bid on the purchase of an existing policy taking into account the insured’s current age, state of health, etc.
In other words, if the policyowner qualifies, he may be able to "sell" his/her policy for more than the cash value if there is any.
This is a complete win for term insurance policy holders that no longer need or want the coverage. This market has created a potential value to term policies that didn't exist prior.
The institution that becomes the new owner of the life insurance policy, pays future premiums, and collects the death benefit when the insured dies.
What are some of the reasons you may consider the sale of your policy?
- The business or personal life insurance policy is no longer needed or wanted
- To pay for healthcare costs
- Premium payments have become unaffordable
- Considering lapse or surrender of the policy
- Change in estate planning needs
General criteria to qualify for a life settlement:
- Insured is age 65 or older
- Policy face amount of $250,000 or greater
- Life insurance policy must be over 2 years old and/or out of contestable period.
How much money will I get if I sell my life insurance policy?
The value of a life insurance policy is determined by a number of factors, including, but not limited to, the age and medical condition of the insured, type of insurance policy, rating of the issuing insurance company and amount of premium payments to keep the life insurance policy in force.
How we can help you sell your life insurance policy?
We can shop your case with all of the licensed life settlement providers to get offers and then negotiate to get you the best offer possible. We'll handle all of the paperwork to make the process as simple as possible.
You SHOULD NOT consider selling your policy if your beneficiaries are going to need the insurance upon your death unless there is no way you can afford to continue the coverage.
Please call or email today of you're interested in getting more info.
Gordon E. Conwell Associates, Inc.
6001 West Valley Green Road, Flourtown, PA 19031
Phone: 1-800-380-3533
Fax: 215-836-0828
email: gconwell[at]netaxs.com