Can I Sell My Life Insurance Policy for Cash? Three Key Factors to Consider
- June 1, 2020
- Posted by: Hidden Gem Life Solutions
- Category: Blog
Aging Americans often consider the cost/benefit ratio of life insurance. Is the payout at the end of your life worth the monthly premiums? Are you better served by having access to that money now? What about receiving a lump sum now, rather than the result of your life insurance policy later?
If you are considering selling your life insurance policy, here are three key factors to consider:
- Is your policy large enough to sell? Policies worth at least $100,000 are the recommended minimum for making a lump-sum deal. Life settlement brokers tend to offer anywhere between 10 and 30 percent of your insurance payout. Consider the possible results for your policy within that range, and decide whether trading your death benefit for that sum is worth it to you.
- Are your premiums a problem now? If medical bills or other financial burdens make life insurance payments an ongoing issue, consulting a life settlement broker is a good idea. Letting your life insurance plan expire through non-payment or taking an early surrender value from your provider are often lesser options than selling your plan outright.
- Do you have an upcoming large one-time expense that is more pressing than taking advantage of your health insurance payout? Sometimes, timing is everything.A singular expense for you or a loved one in the short-term might matter far more now than a death benefit later. For example: Catching up on a large debt in one go, putting a down payment on a home for a loved one, or a major vacation while you’re healthy enough for it.
Life settlements aren’t for everyone. Our settlement brokers at Hidden Gem Life Solutions help clients come up with a fair plan appropriate to their needs. If you would like to learn more about selling your life insurance policy for cash, contact us at Hidden Gem Life Solutions for a consultation.