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How To Sell Life Insurance For Cash
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The main reason why people purchase a life insurance policy is to protect their loved ones from financial burden should they pass. However, studies and research have shown that about forty percent of life insurance policyholders end up selling their policy.
The main reason why people purchase a life insurance policy is to protect their loved ones from financial burden should they pass. However, studies and research have shown that about forty percent of life insurance policyholders end up selling their policy.
Types Of Life Insurance
There are mainly two types of life insurance and they include; term and whole life or permanent insurance.
Term life insurance: as the name implies is the type of life insurance policy that is valid only for a specific period. That is you will have to pass within the specified period else your policy will be invalid.
Whole or permanent life insurance, as the name implies is the type of insurance that is not specific to a death period. It can however last for hundreds of years as long as you take that long to pass. People mostly purchase term life insurance because of its affordability when compared to the whole life or permanent life insurance.
The death benefits that come from your life insurance would be rewarded to whoever you choose as the beneficiary (usually your loved ones). As said earlier, these death benefits are meant to alleviate the financial burdens of one’s family in their absence.
Why Do People Sell Their Their Insurance Policy For Cash
With the prospective death benefits of life insurance, you must be wondering “why sell your insurance policy for cash when you still have families?” life insurance policyholders sell their life insurance policy for various reasons but the main reasons include:
– Term life insurance policy is almost due
– To settle unexpected expenses
● Term life insurance is almost due
Generally, term life insurance policy is the type of life insurance mostly purchased. Since it is valid for only a specific period you are expected to pass. The policy would be invalid If you do not pass within this period, except you choose to convert it to a permanent life insurance policy. This conversion comes with a very premium charge.
● To settle unexpected expenses
No one can predict what the future holds especially when it comes to expense. Most requisite expenses for seniors, such as health and medical care expenses are now on the rise and are financially burdensome to people. Hence, they sell their life insurance policy to maintain financial buoyancy.
How To Sell Life Insurance
The selling of your life insurance policy for cash involves two basic methods.
– Selling it directly to a life insurance company
– Selling to a life settlement broker
A life settlement broker is a hub that will link you to multiple life insurance providers ready to purchase your life insurance policy. This service however is not free; hence you will have to offer them a specific percentage from the sale.
Life settlement broker or company usually consider a few factors that determine how qualified you are for their services. These factors include how large your death benefit is (must be above $100,000) and your age (must be sixty-five and above).
Once you qualify for the requirements of a life settlement broker or company, you will need to go through the last process. In this process, you will be required to provide detailed pieces of information about health via a questionnaire.
The amount of money you will make from selling your life insurance policy is not in a fixed range. You will be aware of the cost only after you have gone through a variety of evaluations. Although there is no standard estimate for your life insurance policy, studies have shown that you will receive about four times more than the cash you will get if you surrendered your policy.
