Selling Your Life Insurance Policy Does It Make Sense?

You might have bought life insurance to safeguard your family or business and supply monetary security when it was needed most, like lots of Americans have done. However, as situations change, your insurance coverage priorities might have changed with them, which is why selling your life insurance policy can make sense.

There are countless reasons you may wish to sell you life insurance policy. Which one is yours?

There are numerous reasons you may consider selling a life policy:

• The premiums are no longer affordable.
• The need to replace lost income in case of death of the insured no longer exists.
• A term policy may be reaching the end of the coverage period.
• Funds are wanted to improve a retirement lifestyle.
• The need for funds to pay estate taxes no longer applies.
• The need to eliminate future premiums payments but keep some life insurance. 
• There is a need for resources to pay for health expenses and long-term care. 
• A business no longer needs key-man insurance. 
• Premiums of policies owned by trusts continue to rise. 

Maybe selling your Insurance policy isn't the right thing to do:

Selling your life insurance can be the answer but sometimes it is not. In the panic of a financial crisis we sometimes jump to a conclusion without getting all the facts. The following is a list of alternatives to selling your policy, one may be right for you.

The sale of a life policy is not for everyone. There are alternatives other than selling a policy that may be appropriate for a policy owner’s circumstances:

• Keep the policy enforce through a loan or use of the cash surrender value.
• Seek an accelerated death benefit, if available.
• Assign the policy as a gift or charitable contribution.
• Covert a term policy to permanent insurance.
• Reduce the death benefit with a lower face value and lesser premiums.
• Lapse or surrender the policy.

Life insurance is an important asset, but with time you may find that your policy no longer matches your requirements-- your children are grown, you have medical expenses to cover, retirement costs are increasing, or premium payments are just too expensive.

Policy owners often grow out of the usefulness of their life insurance policies. And, traditionally, their only option was to lapse the policy or surrender it to the insurance provider.

But you have a much better choice.

You can sell your life insurance coverage policy. It's called a life settlement. And it supplies you with the chance to sell your policy for money you can utilize any method you desire, and even to keep a portion of your policy's survivor benefit without needing to make any extra premium payments. On average, policy owners can expect to get more than four times the policy's cash surrender value.

 Learn More - What is a Life Settlement? 

How Selling Your Life Insurance Policy Works

You can receive more money from selling your policy than you would if you cancelled or surrendered your policy to the life insurance company. Life settlement proceeds can be used for anything you want, including supplementing retirement income, paying down debt or funding long term care. You can even keep a portion of your life insurance coverage while eliminating premium payments.

The process of selling your life insurance policy is not difficult. It is a 9 step process that is mostly handled by the life insurance settlement broker. Besides an application and some of your medical records there is not much for the applicant to do. The following is a simple list of the process.

This process can cause some anxiety and fear in doing it right. Also what if you are not near a local insurance agent that handles this type of service. What do you do? Many firms like Mason Finance can do this online. There is no excuse anymore to solving your financial needs.

Process For Selling Your Life Insurance policy

1. Realization:

Policy owner realizes that his/her life insurance policy is an asset that may be offered for sale.

2. Contacting a Representative of the Life Insurance Settlement Association:

If a life settlement is determined to be the best option, the policy owner or the advisor get in touches with a member of the Life Insurance Settlement Association who is either a life settlement broker or provider to start the procedure. It's possible to engage in a life settlement through either.





3. Application:

After selecting proper representation to settle a policy, the policy owner should complete an application and provide policy, ownership and insured information providing a list of doctors and/or medical records for underwriting. It is essential that you review all your personal privacy and security rights.

4. Underwriting:

The settlement company submits the medical records for review by an independent life expectancy company. Life expectancy business calculate the probable life span using actuarial and physician experts.

5. Analysis:

Each life settlement provider/buyer calculates the marketplace value for the policy offered for sale. Companies may consider different aspects when valuing a policy, including contract specifics such as premium expense, death benefit and provider ratings, as well as insured details like age and life span underwriting.

6. Preparing an Offer:

The provider/buyer will either decline or prolong an offer to the policy owner or agent. An agent will seek competing offers from other providers/buyers. The policy owner can accept or decline any offer.

7. Purchase and Sale Agreement:

If the policy owner approves a deal, the provider that made the deal will prepare a purchase and purchase contract and other documents formalizing the transaction. The policy owner, insured and beneficiaries then sign this package. The provider will evaluate, complete due diligence and countersign the plan. The money for the settlement sale are then placed in an escrow account.

8. Notification:

The insurance provider is informed of the modification of policy ownership and named beneficiary to the different owner, the provider.

9. Money Transfer:

Upon written confirmation of the change of ownership and beneficiary, the escrow agent releases the settlement payment to the seller of the policy.

The process is simple and painless. It's easily handled by your Settlement specialist. In a very short time you will be in possession of your money.

- Click Here: Selling Your Life Insurance Policy, Does It Make Sense? -

What is a Life Settlement?

A life settlement is the sale of a life insurance policy. A life settlement is the selling of an existing life insurance policy to a third party for more than its cash surrender valuation but less than its net death benefit. In a life settlement deal, the policy's owner transfers ownership of the policy to the buyer in exchange for an immediate cash payment and, in some instances, a curtailed interest in the survivor benefit for the policy's beneficiaries. 

The purchaser of the policy pays all future premium payments and is given the survivor benefit upon the death of the insured (as soon as the policy matures).

What is a Viatical Settlement

A life settlement is dissimilar from a viatical settlement in that the individual insured on the policy has a longer life expectancy. In a viatical settlement, the life expectancy of the insured is 24 months or less.

Many American senior citizens-- generally those 70 years of age or older-- are finding that life insurance policies that once seemed necessary, have become unaffordable or no longer satisfy their needs.

Because of this, most seniors lapse or surrender their policy back to the insurance provider. Policies with more than $100 billion of face value are lapsed by seniors over age 65 each year, mostly because they are unaware an alternative might be offered-- including the sale of the policy.

Who Can Help?

It's usually best to consult with members of the Life Insurance Settlement Association (LISA). Member companies are certified in all areas of the life settlement market; however, to initiate the sales process of your policy you need to work with a licensed life settlement broker or specialist like Mason Finance.

Life settlement brokers provide an essential function of guiding a policy owner through the sales process, including assembling the required information to finish the sale. Additionally, they look for competitive offers for a policy and provide guidance concerning the deal that best meets the needs of the client.

Life settlement companies purchase policies either through a life settlement broker or straight from consumer individuals for either their own account or on behalf of an investment firm. State regulations require that all policies are offered through a licensed life settlement provider.

Law firms, medical underwriters and other intermediaries serve specific requirements associated with the settlement process. LISA members yearly attest to sticking to a Code of Ethics and Standards of Professional Conduct.

Click Here - How Selling Your Life Insurance Policy Works

Things to Keep in Mind About Life Settlements

Senior life settlements are one way for those who are older to meet their financial obligations, and to use the resources at their disposal to help make themselves that much more comfortable later in life. However, in order to get a life settlement, it's important for a senior to know what category he or she fits into, and how likely it is they'll be able to get what they need.

What a Life Settlement Company Looks For

There are certain things that make a senior more likely to get a life settlement than they otherwise might be. For instance, many companies look for seniors that are over the age of 70, and who have roughly a 12 year life expectancy or less. The reason for that is because the company wants to see a return on their investment, and they don't get paid until the individual in question dies and the benefits will be transferred to the company that gave them the life settlement in the first place.

In addition to this though, a settlement company tends to look for seniors that have had their life insurance policies for two years or longer. If someone falls into these important categories, then it's likely that a settlement company will consider that person a "good" investment, if talking about someone's death can ever be considered good.

Checking The Terms

People turn to settlement companies for a variety of different reasons. Whether they have outlived their beneficiaries, they can't keep up on the payments for the policy, or another reason entirely, the idea of a lump sum that's more than what they're paying but less than the death benefit appeals to them. However, it's important that these persons look very carefully at what a settlement company is offering before they sign on the dotted line. Once the signature's there, there is no going back afterward.

Those getting the settlement need to see precisely what the company is offering, and what strings are attached to it. Different companies have different policies, and it's the duty of the person getting the settlement to read the fine print and make sure they're all right with it. This includes the amount of the settlement, as well as whether it's in a lump sum or paid out over time. It also includes the terms of the agreement, including dates, times and amounts. All of that is important, and once someone signs the contract, they are binding. It's better to carefully consider something and decide it's not right then to rush right in and realize that at a later date.

Check out your options. Talk to a reputable life settlement company and find out everything you need to know about your options. You are under no obligation to go with them, but their friendly customer consultant can help.

Seniors Take Care Of Debts With Life Settlements

Seniors that are looking for ways to become financially free in 2013 have been given the option to erase outstanding debts by using Life Settlements. Without financial debt, seniors can enjoy the more interesting things in life. 

It’s finding ways to achieve a debt-free life that can be tough, especially considering the situations facing retired seniors. These settlements provide a way to eliminate debt, buy a vacation property or help someone else out, by providing a way to secure funds quickly.

Retired seniors often have limited income to spend on luxuries. Many times, the monthly bills can exceed a fixed income household’s budget. Needing help paying off medical bills is common in 2013 for seniors with limited incomes. 

Those not able to keep up with the growing cost of hospital and doctors’ visits are now using settlement alternatives to pay off healthcare providers. Many are selling off their life insurance policies because the premiums have become too expensive to afford.




Some seniors have figured out a way to create dividends above cash value from investments they have already made in life insurance. Some financial advisors are showing retirees how to use their current life insurance policies to make their debts disappear. 

By selling their life insurance policies, policyholders can receive lump-sum payouts of up to 60 percent of the policy value. These payouts are being used to create a new and more enjoyable financial situation. 

These types of financial strategies are easier to execute than obtaining the traditional loans that some might choose. These types of financial strategies are easier to execute than obtaining the traditional loans that some might choose. Other non-traditional options are title loans, which could also be helpful.

Seniors who may have felt as if they had lost control of their finances have found another alternative to debt-free living. They have gained a secure financial foothold on their future and possibly contributed to the futures of others. 

Being able to help their children, revive a business that needs a boost or move into the lakefront cabin, can be made easy when considering cash settlements against their life insurance policy. Anyone considering this type of settlement should consult with an advisor for details.