Got a life insurance policy? Don’t surprise yourself if I tell you that your policy can earn you a whole lot more on selling than you ever thought. Yes, provided you sell your life insurance policy for cash at the right time, you can make a great deal of cash.
The entire life insurance business in the United States alone is worth more than 3.4 billion. Hence, without a doubt, you can get a piece of this billion-dollar empire provided you play your cards right.
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Planning to sell your life insurance policy for cash starts at a very early period. It goes as far as to pack to the purchase of your life insurance, your premiums paid, and its overall value. So, settlement companies look at various factors before handing over a cheque to you. Furthermore, selling your policy proves to be much more valuable than just letting go of it. However, if you let your policy go, stop making premium payments, soon, you’ll have lost all your death and cash benefits. Rather than that, if you can’t pay the premiums anymore, sell your policy.
You have got to be eligible to sell your life insurance policy for cash
As noted earlier, the process of building a life insurance policy portfolio that’s eligible for a grand sale starts at the very beginning. Here are a couple of factors that make your chances to sell your life insurance policy for cash higher.
- You should own a life insurance policy that’s permanent. Majorly, universal and whole life insurance preferred the most by life settlement agencies.
- The value of your policy should mount up to $100,000.
- Your age should not be less than 65 years.
What is the amount can you recover when you sell your life insurance policy for cash
The amount received by an individual for their policy can vary depending on several factors including the age of the policy, the premium amount, policy record, and portfolio among others. The more boxes you tick, the better your cash benefit.
Another factor that affects highly is your life expectancy. If you have an underlying disease or condition that gives you only a certain time frame to live, your chances to receive greater cash benefits increases.
Selling your life insurance policy for cash can prove to be one of the best solutions than loans, mortgages, or any other kind of financial burden. If you are at the right age and have no instant money, you can also take advantage of your life insurance policy by selling it.
Now, what’s good always has a little downside. The same is with selling your life insurance policy. Here are some pointers to look out for when selling your life insurance policy.
- Your cash received will always be less than your cash and death benefit of the insurance.
- Using a broker can cost up to 30% of your total cash received.
- The money you receive will be taxes.
- No death benefit allowed to your beneficiary.