TrustLife⁺
Sell Your Life Insurance Policy

Estimate the cash value of your life insurance policy in seconds!

A life settlement can be a boon to your financial situation while you are still around to enjoy it. Here’s what you need to know about your life settlement options before moving forward.

How Selling Your Life Insurance Works

When you sign up for a life insurance policy, you agree to make premium payments in exchange for a benefit paid out to your dependents upon your death. If you decide that you’d like to sell your life insurance policy, the process is called a life settlement. If you are selling your life insurance, an investor will provide a cash offer for the right to take over your life insurance policy entirely. The cash amount offered will be more than the policyholder’s cash surrender value, which is the amount a policyholder can receive if they cancel the policy.

The cash amount offered by an investor will be less than the full death benefit, which is the sum that a beneficiary would receive upon the policyholder’s death. If you agree to sell your life insurance policy for the cash amount offered, you will transfer the policy’s ownership to the investor. At that point, the investor will take over the premium payments and receive the death benefit when the time comes. As the original policyholder, you will enjoy an influx of cash immediately. But any beneficiaries will miss their opportunity to collect a payout upon the original policyholder’s death.

Learn More

Can I Sell My Life Insurance Policy?

If you want to sell your life insurance policy, you’ll need to take a closer look at the fine print. In general, investors are willing to buy universal and whole life insurance policies.

What if you have a term life insurance policy? If you do, it is still possible to sell it, but first you’ll need to convert your term policy into a permanent policy. Luckily, many term life insurance policies have conversion riders, which allows you to pursue a life settlement with a term life insurance policy by changing your term coverage into permanent coverage.

A conversion rider may eliminate the need to submit to a health evaluation when changing your policy. However, some conversion riders have set time limits or age restrictions that could prohibit you from converting your term policy into a permanent policy.

If you aren’t sure whether or not your term life insurance policy has a conversion rider, take the time to read into the details of your policy, or reach out to your insurance agent to ask any questions you have about your current policy.

Discover your policy value in seconds

Get Your Estimate

Sell My Term Life Insurance Policy for Cash

Yes, you can sell a term life insurance policy for cash as long as the policy is convertible into permanent life insurance.

To understand why it can be difficult to sell a term life policy, it is vital to understand the difference between a term and permanent policy.

A term life policy lasts for a certain period of time. If you pass away within that time period, your beneficiary receives a death benefit. If you outlive the term, the policy ends at the end of the term.

Permanent life insurance does not have a set term, meaning the policy is in effect for the remainder of the policyholder’s life (as long as the policy is paid up or they continue making payments).

When you purchase a term policy, you often have the option to add a conversion rider. A conversion rider makes a term life policy convertible to a permanent life policy.

A term policy has to be converted to a permanent policy to be sold.

The good news is that, if you have a convertible policy, your health will not have to be re-evaluated when you convert to permanent life insurance.

The bad news is that some conversion riders have age or time limits on when a conversion can happen.

You will need to look at your policy or call your insurance agent to find out if your policy is convertible and what limits it has on conversion.

Who Can Sell Their Life Insurance Policy?

When you are considering selling your life insurance policy, it is important to think about who the investors are looking for. As mentioned prior, investors are unlikely to buy term policies without convertible riders, but there’s a few other conditions they may be checking for as well.

In general, you’ll need to be at least 65 years old or have a serious medical condition to qualify for selling your policy. Beyond that, the life insurance policy itself should have a face value of at least $100,000 or more.

It is possible to sell your life insurance policy without meeting the general conditions above, however it isn’t common practice for investors to purchase policies with smaller face values, especially from younger individuals without major health concerns.

In summary, to be eligible to sell your life insurance policy, it is best to be over 65 years of age or have a serious medical condition and own a permanent (or convertible) life insurance policy that has a face value of at least $100,000.

Why Should You Sell Your Life Insurance Policy?

The cash deal of a life settlement can help you to afford the costs of retirement, medical care and other expenses. Here are some of the most popular reasons that policyholders choose to sell their life insurance policy:

Too Much Insurance If you have a high-dollar life insurance policy for yourself or your spouse, you may not need to keep the total value of coverage. Overinsured individuals could consider downsizing their coverage.

Consider whether your beneficiaries will truly need such a high death benefit when you pass. In some cases, the answer is no. With that, you might want to take advantage of the opportunity to access some of your policy’s value now.

Unaffordable Premiums
Are your life insurance policy premiums too high to squeeze into your budget? If so, selling your insurance policy could be the perfect solution.

A life settlement will put cash into your pocket now. Plus, it will eliminate all future premium payments that could put stress on your budget.
No Remaining Beneficiaries
When you originally took out your life insurance policy, you likely did so with your dependents in mind. The goal of taking out the policy was to protect your dependents from financial distress in the event of your untimely passing.

But if your original dependents have since grown up and become financially independent, then you may not need to keep the life insurance policy.

Term Policy Approaching Expiration
If you have a term life insurance policy with a conversion rider, you’ll need to make a decision on whether to keep the policy or let it expire. In some cases, you might decide to convert the term policy into a permanent policy in order to maintain access to life settlement options.

You Need Cash Now More Than Your Beneficiary Needs Cash Later
If your beneficiaries are financially stable and you aren’t, consider selling your policy.
Unanticipated costs crop up as we age. You may need money for long-term care, medical bills, or to bolster your retirement income.
If your needs in life outweigh the death benefit that a non-dependent beneficiary would receive, selling your policy could be the right choice.
Opting to sell your life insurance should be a well thought out move. It is always best to consult with a professional to ensure that you know what your best options are.

What is Your Life Insurance Worth if You Sell?

A major factor in your decision to sell your life insurance or not is the cash you would receive. After all, you don’t want to make the sale unless it is worth your time and effort.

The exact worth of your life insurance will vary widely based on a few key factors:

Death benefit amount. A larger death benefit will lead to a larger cash offer. As an investor, larger death benefits are worth the wait.
Premium costs. After you sell the policy, the investor will be responsible for the future premium payments. With that, premiums that are somewhat affordable and come with a bigger death benefit will be more enticing for investors and bring you a larger cash offer.
Life expectancy. Although this can be a difficult thought for you, investors will consider your life expectancy before making an offer. A shorter life expectancy will lead to a higher cash offer because the investor expects not to pay as much in premiums before collecting the death benefit. Typically, you’ll have to provide medical records to life settlement providers for an estimate of your life expectancy.

If you are considering selling your life insurance policy, take advantage of our free calculator. You can walk through the quick process to find an estimated cash offer for your life settlement. A better idea of the money that could be on the table for you may help you decide whether or not you want to pursue a life settlement opportunity.

Advantages and Disadvantages of Selling Your Life Insurance Policy

Every financial decision has advantages and disadvantages. Selling your life insurance policy is not any different. Let’s explore the pros and cons.

Pros of Selling Your Life Insurance Policy

Cash for your policy. An investor will provide a cash offer to put in your pocket now.
More cash for you. The cash offer is larger than the surrender value, which is the amount you would receive from the insurance company if you just give up your policy.
Budget freedom. Eliminating the policy’s premium from your budget can add more financial flexibility. If you have an expensive policy, this is an especially important point
Cover your costs. A life settlement can ease the expenses of retirement.

Cons of Selling Your Life Insurance Policy

No payout to your beneficiaries. When you pursue a life settlement, the investor will claim the rights to the death benefit. If your beneficiaries are counting on the payout, it could lead to an uncomfortable conversation.
Medicare eligibility concerns. With a large cash influx, you might become ineligible for Medicare coverage. Don’t move forward if this is a major concern for your situation.
Increased tax liabilities. When you accept a cash payment, you may be responsible for increased tax payments. Consider your tax situation before moving forward.

Alternatives to Selling Life Your Insurance

Accelerated death benefit. Many life insurance policies have an accelerated death benefit option, sometimes called a ‘living benefit,’ that pays you a part of your death benefit while you’re still living. Consult with your policy details to find out if this is an option.
Borrow against your policy. You don’t have to sell your policy to access some of the cash value now. It’s possible to borrow against your life insurance. To be clear, this option is a loan, and like all other loans, you’ll have to pay back what you borrow with interest. If you pass away before you repay the loan, the outstanding loan balance will be subtracted from the death benefit.
Surrender your policy. You can surrender your life insurance policy by choosing to stop making premium payments. If you choose to surrender your policy, you’ll be paid a portion of the policy’s cash value. However, this surrender amount is typically lower than the cash offer presented by a life settlement.

Although these alternatives might allow you to see an influx of cash into your finances, keep in mind that a life settlement might be a more lucrative opportunity.

Benefits of Selling Your Life Insurance

If you are thinking about seeking a life settlement, the major benefit to consider is the influx of cash. As you move further into your golden years, unexpected expenses can turn up at any time. Whether you need to pay for long-term care or want to enhance your retirement with enjoyable luxuries, a life settlement can help you fund the expenses in your life.

How Long Will It Take To Receive A Cash Payment?

How quickly you can receive your cash payout from a life settlement could be a big part of your decision-making process. With that, let’s explore the timeline you could expect if you choose to work with uplife FINANCE.

Get an estimate in minutes. The free estimate calculator will give you a ballpark figure of what kind of payout you should expect.
Data gathering. If you decide to move forward, you’ll need to send a variety of information, including an application and medical records to us. Typically, it takes 7 to 14 days to collect all of the information required.
Sign the contract. If you accept the bid, signing the contract will close the deal.

Data analysis. Once you have sent your information, it will take approximately two weeks to process. Since this is the longest stage of the process, patience is key.
Cash offer. You will receive a bid from us if the policy can be purchased.
Payment funding. After you send your signed contract back, it will take between 14 and 20 days to fund the purchase.

As you can see, you will receive your funds relatively quickly. However, it may not be soon enough if you have a pressing expense that needs to be covered in the next week or two.

How to Get a Quote to Sell Your Life Insurance

If you’ve decided that a life settlement is the right option for your situation, then it is time to get a quote. At that point, you can determine if the cash offer is enough for you to continue moving forward.

The easiest place to get a quote is through our free estimate calculator. In a matter of minutes, you’ll have a quote for the cash offer you could receive for your policy. It never hurts to get a quote; you might be surprised by the amount of cash you could receive.

Take the time to get your free life settlement estimate today!

(4 votes, average: 5.00 out of 5)

TrustLife+Sell Your Life Insurance Policy