If you hold a life insurance policy you no longer need, selling it may bring in cash. A policy will have the most appeal to buyers if it was bought when you were much healthier than you are now. Then the premiums will be lower, in relation to the death benefit, than a policy bought from someone whose health has not deteriorated.
The policies most attractive policies to potential buyers are:
* Universal life. These are permanent life insurance policies, meant to remain in force for the life of the insured individual. With "universal" life, there is some flexibility in paying premiums.
* Convertible term. These are inexpensive policies covering a certain time period. They can be converted to permanent life insurance, without requiring the insured individual to take a medical exam.
If you put your insurance policy up for sale, request that an unrelated party hold a prospective buyer’s funds in escrow. Then your insurance policy can be placed in escrow and the policy can be exchanged for the purchaser’s cash.