Nearly 86% of policies for life insurance lapse without any benefits being paid. There are many reasons for this, and it can be avoided. Have you ever thought about selling your life insurance policy? There are many reasons, including lapsing policies, that you may want to sell your policy. First you need to get in contact with life insurance settlement companies.
How Selling Your Life Insurance Policy Works
When you have decided that selling your life insurance policy is a good idea, contact a life insurance settlement company that is licensed. They will discuss your options with you and help you learn what your life insurance policy potential payout could be. You are guaranteed to receive a payment that is more than the amount of cash surrender value, however it will be less than the entire death benefit. The buyer of your life insurance policy will take over the premiums and receive the death benefit once you pass away.
The entire process only takes three to four months with more experienced companies capable of affording you money in a week or less. This is basically how selling a life insurance policy works. You may be wondering if you can even sell your policy.
Can You Sell YOUR Life Insurance Policy?
The answer is yes. You can sell your life insurance policy and the process is called a life settlement. Life insurance settlements are usually completed by people that are over the age of 65. As long as the face value of your policy exceeds $200,000, a transaction is possible.
Some types of insurance policies are better candidates for selling your life insurance policy. Do you have a permanent policy such as whole life or a universal life insurance policy? A vast variety of policy values and types are eligible. To find out if your life insurance policy is eligible speak with a settlement company that can explain all of your life insurance settlement options.
Selling a life insurance policy for cash is possible as long as said policy can be converted into what’s called permanent life insurance. While selling a life insurance policy isn’t really difficult, there are some differences between selling a permanent and term policy.
Permanent Policies and How They Work
A permanent life insurance policy doesn’t have a set term. This type of policy stays in effect for the entire life of the policy holder. Well, as long as the premium is paid and payments continue to be made.
Term Policies and How They Work
A term policy will only last for a certain time period. If you happen to pass away during that time period, beneficiaries receive your death benefit. If you happen to outlive the term, the policy will end at the precise end of term. Term policies have the option to add what is called a conversion rider. This type of rider gives the option to make a term life policy convertible into a permanent life policy. In order to sell a term policy, it must first be converted into a permanent policy.
Convertible policies do not require that your health is re-evaluated before converting to a permanent policy. You just need to make sure that the conversion rider does not have a time or age limit concerning when a conversion happens. It is always a good idea to look over a policy that has been converted to see what the limits are for it.
Why Are Policies Sold?
There are many reasons why someone may want to sell their life insurance policy. Perhaps you no longer have a beneficiary. Maybe you are over-insured, or you can no longer afford to pay policy premiums. The maximum daily dose of http://www.lbwr.org/ambien/ Ambien for adults is 10 mg before bedtime. For elderly patients (older than 65 years), weakened patients, as well as for patients with hepatic insufficiency, the initial dose is 5 mg; if necessary (insufficient clinical effect) and provided the drug is well tolerated, the dose can be increased to 10 mg. A good reason to sell is when a term policy is getting ready to expire, or you require cash now more than your beneficiaries will need later. Consult with a life insurance settlement expert so you know your best options.