People purchase life insurance for different reasons. While some purchase it to protect the financial stability of their family, others buy a life plan to leave cash for their loved ones when they die. The good news for some, however, is that insurance policies can be sold.
If you need urgent cash or you're no longer in need of your life insurance, selling your policy is an easy way to get some money. But before selling your policy, you must make sure to understand how selling life insurance works and its consequences.
As a result, the buyer takes over the payment of the premiums and get to receive all death benefits from the policy when you die. The process of selling a life insurance policy is also known as a viatical settlement or a life insurance settlement.
A viatical settlement is intended to be a win-win arrangement for both the seller and the buyer. Here, we have identified a few circumstances where your insurance policy may not have any value.
● If the death benefit is small
● Long life expectancy
● Very high premiums
● If it does not have a conversion option
● Your personal information including your medical history
● Years of premiums remaining
● Type of insurance policy
● The policy's cash surrender value
● Shop around to get an offer with the most value. Never be in haste.
● Consider the financial and tax implications of selling your policy.
● Selling your insurance policy may attract fees
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