We won’t keep you waiting on the edge of your seat for too long here. For many policyowners, the answer to that question is a solid “yes.”
If you have an active, yet unwanted or unneeded life insurance policy, you may very well be eligible to sell it for cash. So, if you’ve been thinking about surrendering your policy back to your carrier just to get it out of your hair, don’t surrender your life insurance policy before you consider all of your options. You may be eligible for a cash payout that would far exceed any amount that you would save by discontinuing payment on your premiums.
You probably have some questions at this point, so let’s just run over the ones we get asked the most frequently. If you have additional questions, please reach out to our team at ALIR Settlements. We would be more than happy to walk you through the entire process!
So, I Can Sell My Life Insurance Policy?
Put simply, yes, it is possible to sell a life insurance policy for cash. The process of doing so is called a life settlement. Every year, more and more policy owners are realizing that their life insurance is actually a valuable asset. Consider this for a moment: Many seniors with active policies have been investing in them for decades. While these policies are active, they have real market value. During the Life Settlement process, you will sell your policy to a third-party buyer for a cash payout, which will be more than the policy’s cash surrender value, but less than the total value of the policy. The entire process can take as little as 30 days to complete, but generally it takes somewhere between 30-90 days.
Who Qualifies for a Life Settlement?
There are quite a few factors that contribute to whether or not one qualifies for a life settlement. Usually, the individual must be over the age of 70, although that isn’t a hard and fast rule. If a person younger than 70 has certain medical conditions, they may also qualify. The type of life insurance also matters—Universal, Survivorship Universal Life, Whole Life, and Convertible Term Life insurance policies are among those that qualify. We also consider the death benefit amount, the carrier, the type of ownership, the date that the policy was issued, and the illustrated premiums of the policy. Clearly there is a lot to review when determining whether or not a potential client qualifies for a life settlement, which can all be discussed when you book a consultation with us.
How Much Is My Life Insurance Policy Worth?
As previously mentioned, the Life Settlement process typically takes somewhere around 30-90 days, so it’s understandable that one would want to know approximately how much they can expect to receive for their policy before they invest their time and energy. Unfortunately, there are no standardized amounts that we can provide. The cash value depends on a number of factors, many of which will be discussed during an in-depth interview and an evaluation of the policy holder’s medical records.
Once the needed information is obtained, steps can be taken to generate an accurate price.
To give you an extremely general idea, the range we’re looking at is anywhere from 10% to 80% of the policy’s value, depending on the health and circumstances of the policyowner. As you can see, with a range that wide, providing an estimate without taking the proper measures could be grossly misleading and irresponsible on our end.
But rest assured, if you’re interested in exploring the option of a life settlement, ALIR Settlements will go about things the right way, and we will equip you with all the information that you’ll need to make the best decision for you and your loved ones.
Okay, I’m Interested…How Does This Work?
You’re already on the right track. We always recommend that our clients—including potential ones—do their research. This way, by the time you contact us for a consultation, you’ll have all sorts of great questions. We want you to feel confident and empowered by the decisions that you’re making about your financial future, and that begins with knowledge. Whatever you need from us to feel comfortable at every step of the process, just say the word.
When you contact us, the first thing we’ll do is make sure that you meet the minimum qualifying factors for a life settlement. Here are a few things that we’ll be looking out for:
1. You’re the holder of a policy with a death benefit of more $100,000 or more
2. You are over the age of 70
3. You are facing a decline in health
Please keep in mind that if you don’t meet all of these qualifying factors, that doesn’t necessarily mean that you absolutely will not be able to sell your life insurance policy for cash. We are experienced professionals in this industry, and we have seen very unique cases where we were able to find a way for a person to qualify for a life settlement for reasons that weren’t blatantly obvious. So, if none of the above sounds like you, we would still like to encourage you to contact us anyway.
The next step is where our team at ALIR Settlements really stands apart from the rest. If your policy does qualify for a life settlement, we will go to work to find you the best possible offer for your insurance policy. You may hear very well-meaning people say things like, “You should wait sell your policy, because it’s a buyer’s market right now.” But if your current circumstances require the need for extra cash to make your golden years more comfortable, then don’t let opinions like that scare you from exploring the option of a life settlement, especially if you’re considering working with us. With our years of knowledge and experience behind you, you won’t need to worry at all about whether it’s a buyer’s market or a seller’s market. We’ll only bring in the kind of offers that deserve your time and consideration.
If you have any questions about how to turn your life insurance policy into cash, ALIR Settlements is here for you. Please feel free to contact us at any time.
Sources:
https://www.forbes.com/advisor/life-insurance/tap-cash-value/
https://www.bankrate.com/insurance/life-insurance/selling-your-life-insurance/