If you have a life insurance policy you no longer want or need, one option is to cash it in for its surrender value* Alternatively, you might get more money by selling the policy to an investor group–if you’re comfortable with the idea that strangers stand to benefit from your death*
Such deals are called life settlements* Sellers age 75 or older generally get the best prices for their policies, although younger people might collect a substantial amount if they have a severe health condition* Typically, sellers need the type of policy that buyers can keep in force indefinitely, until the insured individual dies*
To sell a policy, you’ll probably need to work with an agent or broker* Check references to find someone has done life settlements successfully* In addition, you should ask to see any bids on the stationery of the buyer, to make sure you’re seeing the actual bid*
Also, insist that a reputable third-party will hold the buyer’s money in escrow* Once a bid is accepted, the insurance policy can be placed in escrow and the sale can be concluded, with the money actually going to the seller*
