The concept and materials of a life insurance policy has been around for a very long time. In fact, back in 1911, in the United States, the Supreme Court declared that life insurance policies are personal property. Needless to say, your life insurance policies belong to you! By definition, a life insurance policy is a contractual agreement with a life insurance company. Essentially, an exchange occurs with this agreement. If you own a life insurance policy, you will have to pay premiums each month. In doing so, once you pass way, the life insurance company will provide your family with a lump sum of cash as a reimbursement. This way, your family will always be taken care of. However, lately, individuals have been questioning if a life insurance policy is actually necessary. After all, around 86% of life insurance policies end up lapsing without any benefits. Therefore, settling your life insurance policy would be the ideal choice. If you have a life insurance policy, but are considering selling your life insurance policy, here is what you should know.
Life Insurance Settlement Company
A life insurance settlement company will assist you if you would like to sell your life insurance policy. Essentially, you’re selling your life insurance policy for cash. Life insurance settlements are quite simple to undergo, and a life insurance settlement company will be satisfied as will you. After all, when you first purchased your life insurance, you were quite young. Life is constantly changing, so eventually it will be time to decide if you can benefit from a life insurance policy. Most of the time, you, as well as the life insurance settlement company, will benefit from a sale.
Selling Life Insurance Policy For Cash: The Process
The first portion of the process is finding a life insurance settlement company. There are many companies that accept and help with selling life insurance. You’ll want to find the ideal life insurance settlement company for your life situation and the policy you have. Once you do, the life insurance settlement company will claim your life insurance policy as their own. They will discuss the proper price, and take the life policy off your hands. You’ll get cash, and it could possibly be a lot! In addition, it is important to note that a life insurance settlement company will have to check up on you from time to time. This may include phone calls, emails, and checking your medical progress. This is because once you pass away, the life insurance settlement company will receive the death benefits that was previously entitled to your family.
Selling Life Insurance Policy: When And Why You Should Sell
If you’re considering selling your life insurance policy to a life insurance settlement company, you’re most likely wondering when and why you should sell. There are a few instances when you should do so:
Payments: When you purchase a life insurance policy, you will have monthly premiums you will have to make. If you realize that you can no longer afford these premiums, it is time to consider selling your life insurance.
Who Benefits?: Many individuals think about their families instead of themselves when they choose a life insurance policy. This is understandable because a lot of individuals get their life insurance policy at a slightly young age. Let’s just say, you will not be purchasing a life insurance policy in your 70s or 80s. Therefore, things change. If you realize that your family is set financially and will not benefit from your life insurance policy, you should sell it.
Overinsured: If you have a life insurance policy and so does your spouse, this may be reason to sell your life insurance policy. Some individuals become overinsured where one insurance policy is only needed. In addition, if you have too many life insurance policies compared to the individuals who will receive your benefits, you’ll want to sell one of the policies.
Beneficiaries: As previously mentioned, a life insurance policy is all about who benefits from it. However, if you no longer have beneficiaries, perhaps they passed away before you, you should sell your life insurance policy to a life insurance settlement company.