Your life insurance policy is your property. You’ve worked hard to maintain it, nurture it, and grow into one of your greatest assets. In many respects, owning an insurance policy is like owning a home and, like a home, you can also sell your insurance policy.
Selling life insurance policies can feel like sending your child off to college. Maybe that’s why you’re selling it. Parting with your life insurance policy is a bittersweet moment. However, the choice to sell your life insurance policy could be the best move you’ve ever made. Unless you dressed up as Michael Jackson last Halloween. In that case, you’ve probably got some other great moves.
Benefits of Settlement
There are several reasons that someone might sell their life insurance policy. The funds that you receive from the settlement are yours and you can use them for a variety of purposes. For example, for retirement, long-term care costs, healthcare expenses, college tuition, or any other need you may have.
Utilizing Market Value
The price of your life insurance policy will depend on relative market value. That is why it’s important to receive proper insight and consultation when it is time for you to select a policy. It is also very important to keep a close eye on your premium payments. Any lapse in your current policy could affect its potential market value. Furthermore, policies with added riders and savings components including cash value earn more on the open market than most other policies.
The paramount benefit of policy settlement is avoiding policy lapse or surrender. When you surrender a policy for its cash value, you may not reap all of the benefits that resulted from your timely payment of premium and riders. It is important to have an understanding of how to nurture your policy and groom it for settlement.
Nurture Your Policy
It is evident to insurance agents how well a policy has been maintained when attempting to sell it. Paying your premium on time is one of the key factors in determining the integrity and health of a life insurance policy. Having not borrowed from the cash value is another contributing factor in the overall market value of your life insurance policy. Added riders can be an additional factor when determining market value.
In any case, the face amount of the policy must be at least $100,000. Policies beneath this amount do not meet the requirement necessary to turn a life settlement into a profitable event for any party.
Be Certain That You Qualify
Many factors determine one’s qualifications as it pertains to a life insurance settlement. First, the policy must be worth at least $100,000. In addition, the insured must be 70 years of age or older. Younger policyholders may qualify depending on certain factors. The named insured must be healthy and may be subject to an attending physician’s statement. The health of the insured is a necessity when considering settlement.
Reaching Policy Settlement
Life insurance policy settlements are highly regulated and considered one of the safest and most secure financial transactions in America today. The National Association of Insurance Commissioners (NAIC) highly recommends life settlements as an effective way to finance any costs incurred regarding medical expenses.
Policy settlement is a brilliant alternative to surrendering a policy for its cash value. Life insurance policy settlements pay (on average) four times more than the policy’s cash surrender value. If you are a policyholder who recently incurred monumental costs associated with medical expenses or tuition, then policy settlement may be right for you. Contact Begus Insurance Group today for your consultation. The Begus Insurance Group agents will assess all your doubts.