Yes, you can sell your life insurance policy! 2.5 million seniors a year will lapse or surrender their life insurance policies…walking away with little or nothing. Why? Because they no longer want the policy, no longer need their policy, and don’t know they can sell their policy for cash. All types of policies can be sold, including term policies…yes, even term policies.
Selling a policy is done through a life insurance settlement, which simply put, is the sale of a life insurance policy to a third party (usually an investor group. The benefit is that clients receive a lump sum payment that is 3 – 5 times greater, on average, than the surrender value of the policy.
So, now, why would anyone sell their policy? People purchase life insurance for many reasons – to pay off a house, pay estate taxes, give a spouse or loved one an income – if something should happen to them. And, sometimes, the reason a policy was purchased 5, 10, 20 or even 30 years ago, is no longer a concern. A client may have retired and their home is now paid off, the kids are now out on their own, a term policy is nearing the end of the term, a business has been sold – making the policy unnecessary. Premiums can also become too expensive to maintain the policy. Whatever the reason, the policy is no longer needed or wanted.
But, is it legal? Yes! Surprising to most people, it has been legal in the United States since a 1911 U.S. Supreme Court decision called Grisgby v. Russell. But, not much happened until the 1980’s. Today, the life insurance settlement market is highly regulated by Departments of Insurance across the country.
Once a client receives their settlement money, they can do anything with it they like: save for retirement, donate to charity, pay for home care or assisted living, take that dream trip….anything! 90% of surveyed seniors who have let their life insurance policy lapse would have considered selling it had they known a life insurance settlement existed. We can help. If you no longer need, no longer want, or can no longer afford your policy, consider a life insurance settlement. We can help.