You bought your life insurance policy for a reason, and it will come in handy someday. But if you can’t afford to continue paying your premiums, then it is useless to you.
If you are stuck in this situation, it can be tough. While you really need your insurance policy, and should have coverage, sometimes the only think you can do to get the most money back is to sell your insurance policy.
While there are laws in certain states regulating this process, it can be done legally and in a professional and ethical manner to help you get some money in return for your policy.
Now if this sounds like something you may be interested in doing, or want to keep in mind, we have outlined how to sell your life insurance policy:
How Does It Work?
So you’ve had your policy for years, and you’ve been consistently paying your premium, but it is becoming harder so you choose to sell your policy. You’ll have to work to find someone who chooses to purchase it, and they will give you cash for your policy. In return, they will take over your policy, and pay the premiums, and they will collect the death benefit upon your death.
What Are The Steps I Need To Take?
Upon deciding to sell your policy, you are going to have to first speak with your agent to decide your first step. The company may have certain guidelines when it comes to selling your policy, so you want to make sure you follow the rules, or else you could find yourself in a messy legal dilemma.
Afterwards, your agent will likely suggest that you get your insurance appraised, in order to determine the value at which you will be able to sell it at. This will determine how much someone will pay you, so you want to get the highest price you can, yet still find it to be affordable enough that someone will consider purchasing and finds it to be useful to them.
After finding the value, your next step will be to find a buyer who will purchase your insurance. Often times, this is the trickiest part, and can be stressful if you are in a time crunch. It can help if you have a broker, or another third party agent to help you find someone in a timely manner. However, this is not a guaranteed thing, and can be extremely stressful if you are in dire need of getting out of your policy right away.
What If I Can’t Find A Buyer?
If you cannot find a buyer, and you are desperate to get out of your policy and get some cash immediately, you do still have some options.
If you are willing to cut your earning off your policy, you can choose to sell your life insurance policy to a settlement company. These companies work to liquidate your policies to get you some cash, but typically will take a large percentage of your money in return. This is unfortunate and not suggested due to the money you’ve put in and the funds you will be losing, but it can a good last resort option if you must get out of your policy immediately.
Things You Should Know Before You Sell
If you are still convinced that selling your policy is the right thing to do, then make sure you go into the process prepared with a realistic mindset. First off, you need to be aware that you will not receive the face value of your policy. It is simply too good to be true, so lower your expectations a bit. You will lose some money, so only try to sell your policy if you are desperate for the cash now, or in the near future.
Also, in order to get a good sum of cash for your policy, you’re going to want to compare offers, and work to negotiate, which can take time. If this is something you need to do, give yourself a little leeway to talk to more people and take the time to get the best price for your life insurance policy.
You should only sell your life insurance policy if you absolutely need to. If you’re low on cash and it is your last resort, sell your life insurance policy for some quick cash, and keep our advice in mind.