Term Life Insurance Articles
Certain Life Insurance Policies Being Sold As Life Settlements
2009-10-10
If you are like many older Americans struggling in the sagging economy, you should know that your home is not the only asset you can turn into cash; you may be able to sell your universal life insurance, term life insurance or whole life insurance policy. Some people with life insurance are being given the option to sell their policy as a "life settlement." Few people know that the proceeds of such a settlement can be much more than the cash surrender value of the policy. In addition to this option, the accelerated death benefit is also being offered on certain, more expensive policies. This benefit lets a policyholder collect a portion of the death payout when diagnosed with a terminal illness and needing funds to pay for care.
The idea of selling life insurance policies began in the 80s. A person facing a terminal illness could sell his or her policy to another person and use the payout to fund for medical treatments. The trend of selling universal life insurance, term life insurance or whole life insurance policies continues today, paying between 15 and 25 percent of the death benefit. Senior citizens with health problems may get even more. Those on the market to purchase the universal life insurance, term life insurance or whole life insurance policy, are looking for a policy that has been in place for at least two years. In exchange for an upfront payment, the buyer takes on the premiums and becomes the beneficiary of your life insurance policy.
In order to sell a policy, there must be an expectation that the policyholder will pass in the near future. The shorter the life expectancy, the greater the potential selling price of your insurance. While not a pleasant thought, the proceeds can be very helpful to those over 70 who are struggling just to survive or pay medical bills. Selling the policy can also be a useful solution for anyone who can no longer make his or her policy payments. Rather than allowing the policy to lapse, selling it allows the policyholder to benefit from at least a portion of the proceeds he or she has paid into the policy, rather than losing everything.
However, this process isn't just done over the phone, or taken lightly. If you are looking to sell any form of life insurance policy, whether it is a term life insurance policy or a whole life insurance policy, contact a broker through your financial adviser, lawyer or accountant. They will be able to talk you through the process and get you the price you deserve for the type of policy you're selling.
Free Insurance Quotes
If you are like many older Americans struggling in the sagging economy, you should know that your home is not the only asset you can turn into cash; you may be able to sell your universal life insurance, term life insurance or whole life insurance policy. Some people with life insurance are being given the option to sell their policy as a "life settlement." Few people know that the proceeds of such a settlement can be much more than the cash surrender value of the policy. In addition to this option, the accelerated death benefit is also being offered on certain, more expensive policies. This benefit lets a policyholder collect a portion of the death payout when diagnosed with a terminal illness and needing funds to pay for care.
The idea of selling life insurance policies began in the 80s. A person facing a terminal illness could sell his or her policy to another person and use the payout to fund for medical treatments. The trend of selling universal life insurance, term life insurance or whole life insurance policies continues today, paying between 15 and 25 percent of the death benefit. Senior citizens with health problems may get even more. Those on the market to purchase the universal life insurance, term life insurance or whole life insurance policy, are looking for a policy that has been in place for at least two years. In exchange for an upfront payment, the buyer takes on the premiums and becomes the beneficiary of your life insurance policy.
In order to sell a policy, there must be an expectation that the policyholder will pass in the near future. The shorter the life expectancy, the greater the potential selling price of your insurance. While not a pleasant thought, the proceeds can be very helpful to those over 70 who are struggling just to survive or pay medical bills. Selling the policy can also be a useful solution for anyone who can no longer make his or her policy payments. Rather than allowing the policy to lapse, selling it allows the policyholder to benefit from at least a portion of the proceeds he or she has paid into the policy, rather than losing everything.
However, this process isn't just done over the phone, or taken lightly. If you are looking to sell any form of life insurance policy, whether it is a term life insurance policy or a whole life insurance policy, contact a broker through your financial adviser, lawyer or accountant. They will be able to talk you through the process and get you the price you deserve for the type of policy you're selling.
