Today’s blog post on The Girl with the Muji Hat is about selling life insurance policies as part of a sponsored post with Mason Finance.
Recently, a family member had a problem with his life insurance. To simply put it, he no longer wanted to continue paying for his policy so he thought of withdrawing it. As expected, fees were imposed upon him and although he got his deducted money back he got all stressed out with the whole process and the waiting.
I wish I knew it’s possible to sell my life insurance. It may have been the best option for my family then.
So how do we really sell a life insurance policy? And where do we sell it?
|if you think of selling your life insurance policy
Ever heard of life settlement? The Life Insurance Settlement Association defines life settlement as “the sale of a life insurance policy to a third party for a value in excess of the policy’s cash surrender value, but less than its face value, or death benefit”.
In a life insurance settlement transaction, you as a policyholder sells your insurance policy or in other words transfers ownership of your insurance policy to a life settlement provider. That means as a former policyholder, you no longer are responsible for paying the policy premiums and you will “receive a cash payment that’s larger than the surrender value of the policy. The life settlement provider is now responsible for all expenses and benefits related to the policy”. (Mason Finance)
Should you sell your life insurance?
- If you find yourself in any of these situations or having any of these thoughts, you might consider selling your life insurance:
- 1. You can no longer afford to pay the premiums.
Selling your life insurance is a great way to avoid letting your policy lapse if you can no longer afford the premiums. If you let your policy lapse, you might end up with little to no payout depending on the type of your policy.
2. You no longer need your life insurance policy.
Another reason to sell your life insurance is that you no longer need it. Life insurance is important to many families because it eases any burdens (ie debts, funeral expenses) in the case of your passing. But if you no longer have family that would be dependent on the claim in the case of your death, you might as well sell your life insurance policy.
3. Your term policy is expiring.
When term policies expire, they hold no cash value and often have expensive replacement costs. The smart way to deal with it is to convert it into permanent life insurance and then sell the new policy for cash.
4. You want to supplement your retirement income.
A life insurance settlement can actually supplement your retirement income so that you won’t find yourself deprived of funds and really enjoy your retirement days to the fullest.
5. You are looking to cover unexpected expenses.
If you are facing unexpected expenses such as medical bills or long term care, selling your life insurance can help you pay for them.
Where to sell your life insurance policy?
Once you made up your mind about selling your life insurance policy, the next question you might ask is where to sell it. There are many investment companies or life settlement providerswho are willing to appraise the value of your policy. You can get your estimate anytime.
You can sell your life insurance in any case you no longer need or want it. There are life settlement companies ready to solicit bids for your policy. Whichever you choose, make sure you talk to an expert and understand the terms so that you can make the best deal out of selling your life insurance.