Selling your life insurance policy to a third-party is known as a “life settlement.” You get cash and the buyer collects the death benefit, at your death.
Does it make sense to sell? Only if you have absolutely no need to keep your life insurance. If you have no desire to leave money to loved ones or charities, and your heirs won’t need insurance proceeds to pay for post-death expenses such as estate taxes, selling an old policy might be a source of ready cash,
If you’re in that category, shop around. The amounts companies are willing to pay vary considerably and you can actually get a bidding war going between firms that buy policies. Enter “life settlements” on an Internet search engine to find potential buyers. If you start a bidding war, you can maximize the amount you’ll receive for selling your policy.
P>Ideally, you’ll sell to someone who’ll bundle several policies for sale to a group of investors. That way, no one will have a huge interest in your death–and know where to find you.
Selling your life insurance policy to a third-party is known as a “life settlement.” You get cash and the buyer collects the death benefit, at your death.
Does it make sense to sell? Only if you have absolutely no need to keep your life insurance. If you have no desire to leave money to loved ones or charities, and your heirs won’t need insurance proceeds to pay for post-death expenses such as estate taxes, selling an old policy might be a source of ready cash,
If you’re in that category, shop around. The amounts companies are willing to pay vary considerably and you can actually get a bidding war going between firms that buy policies. Enter “life settlements” on an Internet search engine to find potential buyers. If you start a bidding war, you can maximize the amount you’ll receive for selling your policy.
Ideally, you’ll sell to someone who’ll bundle several policies for sale to a group of investors. That way, no one will have a huge interest in your death–and know where to find you.
