How to Cash In On a Life Insurance Policy |
Posted: December 9, 2020 |
Life insurance policies are there to help people’s families when they pass away. You may have invested in a policy to ensure that your spouse or children are protected. But if your life circumstances change, it may be possible for you to sell your policy to get access to money that you could use immediately. Below is an outline of the process you can use to cash in on your life insurance policy. Assess the Market It is important to understand how much money you may be able to get for your policy. Look on various websites to get a sense of the amounts that people are willing to pay for specific policies. When you are looking at those details, compare the death benefit of the policies with the age of the policyholder and the money they were offered. That should help you understand how much you could get if you put your policy on the market. Find a Broker Engaging in a life settlement is not easy, and the process is a lot simpler to get through if you are getting help from a broker. A life settlement broker can help you find a third party buyer who is willing to purchase your policy, and then help you engage in the sale legally. Brokers may take a slight cut of the final amount you get, but it is worthwhile as it makes the selling process a lot more straightforward and stress-free. Decide When to Sell When you are entering a life settlement, you should understand that your age and health play a part in how much money you will get for your policy. If you are in your 60s or early 70s, healthy, and do not have any preexisting health conditions, then you will get relatively low offers. Those who are older or less healthy will be getting better offers. If you are seeing offers for your policy that are a little low, it may be better for you to wait a few years before you decide to sell your policy. Unless you need access to the money right away as an emergency, it is better to find the funds through some other means, such as a second mortgage. The above process is one that will help you understand how much money you can get for your policy, get feelers for what offers are out there, and then determine whether it is the right time to sell.
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