The life insurance policy provides financial death benefit through an agreement between a policyholder and an insurance company that financially helps the family of the policyholder after his or her death. But in certain instances, you might feel that you no longer need a life insurance policy. This might trigger a question – can you sell your life insurance policy? The answer is ‘yes’. You can sell your policy through a process known as life settlement. To sell your policy you can directly visit the company that will purchase your policy known as a life settlement provider or else you can hire a life settlement broker who will contact various providers on your behalf that will help you to get the best value for your policy.
How can you sell your life insurance policy –
The selling of life insurance policy includes some process that has been explained briefly as follows –
• After you are qualified for selling your life insurance policy, get in-depth health information about the insured.
• Get a copy of the policy contract and premium illustration from the insurance company and keep it with you. These documents are the details of the specifications of your policy.
• Calculate proper value and death benefits for the insured.
• When the life settlement provider approves further proceedings and makes an offer after verifying all the information, you will need to choose the cash receiving mode. Either you can take full cash at once or you can choose to receive a small amount and keep the rest of the policy’s benefit for the future with no obligations of premium.
• In the next step, you will have to handover all the documents of the policy to the insured and as long as the insurance company verifies your transfer of ownership, your payment will be kept on hold.
How much cash can you get from selling your life insurance policy –
The amount of cash you will get from a life insurance settlement depends on the specifications of the policy and it varies greatly. You have to go through a proper evaluation process to get more or less exact valuation for your policy. In general,the policy owner gets more cash in life settlement compare to the case where they simply surrender their policy. But there are some factors that affect the value of your policy and we have described some of those factors below –
• Life span – The health condition, age, and longevity of an insured have a great impact on the policy value. The greater the insured’s life span, the lower will be the policy cost.
• Age factor – Apart from health conditions, the age of an insured also acts as a great factor that affects the value of a policy. An older insured will get more payout than a younger insured with the same health condition and same policy.
• Policy premium – The premium payment will impact the value of your policy. The higher the premium expenses the lower will be the value of the policy as the provider will fail to provide you high pay for the policy if the policy’s premium payment founds to be high.