Life Insurance Costing Too Much? What are Your Options?
Life insurance policies are designed to remain in effect for decades. The policies are meant to provide you with peace of mind and your loved ones with financial security. But what happens when your financial situation changes and you no longer can afford to keep making the life insurance premium payments? The simplest solution (but not the best) is to simply stop paying the premiums and let the policy lapse. A better idea would be to sell the policy to a third party for cash!
Your Life Insurance Policy is an Asset
Many people don’t realize that their life insurance policy is an asset and like any asset you own you have a right to assign ownership and sell the policy to a third party for cash.The sale of a life insurance policy is called a “life settlement”. Generally, life settlements and the sales of life insurance policies are limited to individuals who are 65 years of age or older and for universal life, whole life or term policies that provide the ability to convert the term policy to a universal life policy.
What is the Value of Your Policy
The value of a life insurance policy is dependent on various factors such as age and health condition of the policy holder. Typically, when a life insurance policy is sold the value is usually a multiple more of the cash surrender value but less than the death benefit. So if you can no longer afford a life insurance policy or determine you no longer want or need the policy, you should explore whether a life settlement and sale of the policy might be right for you.