5 Things You Should Know Before Selling Your Life Insurance Policy
People sell life insurance policies for a variety of reasons. Selling a life insurance policy can be very lucrative in any event. Whether you require immediate funds for a medical or financial emergency, retirement funds, college tuition, or simply don’t need the policy anymore, a settlement can be very beneficial.
Consider the Following
1. Settlement Is Secure
The sale of life insurance policies is considered one of the most secure financial transactions in America today. Life insurance settlements are highly regulated by The National Association of Insurance Commissioners (NAIC). The NAIC highly recommends life settlements as an effective way to finance any costs incurred because of medical and hospital expenses.
All data acquired during the application process and at policy conception is encrypted and stored in the databases and CRMs of the insurer. Only licensed and vetted agents may have access to your personal information. Furthermore, all policyholders and potential policyholders have a right to view their consumer reports. Life insurance settlements are both safe and secure.
2. Taking Advantage of Market Upturns
The price of life insurance policies depends on the market value. It’s important to receive proper advice when it is time for you to select a policy or make any policy changes. In addition, timely payment of policy premiums is a crucial factor in the integrity of any policy. Any policy lapses could affect your policy’s potential market value. Furthermore, policies with added riders or cash value savings components tend to earn more on the open market than term policies or policies without riders.
Policyholders can take full advantage of any upturns in the market. Begus Insurance Group offers critical advice about the current status of the market, which can help if you want to sell life insurance. Having a solid understanding of the status of the market is critical to making the most out of selling your policy.
3. Avoiding Cash Surrender
If your policy is on the brink of lapsing or you are considering cash surrender, speak with a Begus Insurance Group agent today regarding the settlement. When a policyholder surrenders a policy for its cash value, he or she will most likely only receive a quarter of what their policy is truly worth on the market.
4. Understanding Qualification Requirements
There are qualification requirements in place regarding policy settlement that make selling your policy a safe and lucrative process for both you and your agent. The insured must be 70 years of age or older. Policyholders younger than 70 years old may qualify depending on several factors. Your policy’s value must also be at least $100,000. This ensures a lucrative settlement for the policyholder and the agent. When considering settlement, the named insured may be subject to an attending physician’s statement of health. This safeguard helps protect insurers from being taken advantage of.
5. Life Insurance Policy Settlement
Life insurance policy settlements pay four times more on average than the policy’s cash surrender value. If you are a policyholder who recently incurred overwhelming costs, then policy settlement may be your best option.
Selling your life insurance policy is not a decision to take lightly. Our Group Begus Insurance Group agents can help you figure out the best path forward based on your situation. Please Contact Begus Insurance Group today for your free consultation!