A life settlement consists of selling a life insurance policy to a company or agency other than your original insurance provider. When you sell your life insurance package, you usually receive more money than you would if you canceled or surrendered your policy. However, you also typically receive less than the policy’s agreed death benefit amount. Regardless life settlements are something to look into if you are interested in selling unwanted life insurance.
How Settlements and Selling Life Insurance Works
Life settlements are an option if you are interested in selling your life insurance policy. The best way to go about doing so is to shop your policy by talking to a life-settlement broker or provider in order to find out what it’s worth. You will need to have copies of your insurance policy and medical records prior to beginning your discussions.
Once you meet with a life-settlement broker, they will make you an offer based on certain criteria. Age, health, premiums, type of insurance package, and death benefits are all things they will take into consideration before making you an offer. If you chose to accept the offer, you will receive the agreed upon amount from your life-settlement broker and they will assume the responsibility of the policy. The new provider will be accountable for paying all premiums and eventually will receive the benefits upon death.
It’s smart to take all things into consideration before deciding to sell your life insurance policy. One aspect to be cautious of is the possibility of incurring tax penalties when selling a life insurance policy. Furthermore, one of the most challenging aspects of selling a life insurance policy is making sure you are getting a fair price for your policy. Be smart, as most of the life-settlement industry works off commission from policies. Make sure to only use sites and agencies that you trust, as you don’t want your personal healthcare information shared during application processes.
Another consideration when selling life insurance is that it might be harder to get another life insurance policy later in life. Every person has a maximum amount for which they can be insured for. Selling your life insurance policy might make it more expensive to purchase a policy later in life as your age and health changes. Be sure selling your policy is the right choice for you and your future.
There’re many things to consider when thinking about life settlements and selling your life insurance policy. Let Americans for Life help you with this decision and find you the best options for your needs. Visit our website today and let us help you find the right life settlement for your needs www.americansforlife.com.