Home | About | Contact
Divider Auto Loans Divider Mortgage Loans Divider Debt Consolidation Divider Credit Cards Divider Credit Repair Divider Car Insurance Divider Health Insurance Divider Life Insurance

Before You Sell Your Policy, Read This

Before You Sell Your Policy, Read This

Do you have a life insurance policy but would prefer to have the cash to help your beneficiaries in the here and now? If so, you can sell your plan for its cash value. Before you do, though, you should find out more about the process to make a more informed decision. Selling a life insurance policy is a big decision, and you want to make sure you do it right. In this post, we’ll give you more information about the sale of life insurance policies and how to go about it.

About the Cash Value

The sale of life insurance policies originally came about because terminally ill people were looking for ways to cover the mounting costs of care. Terminal illness usually wreaks havoc on one’s finances, and a life insurance policy can offer a quick source of cash. The percentage the policyholders received for the sale depended on how long they had left to live. Of course, the amount they receive is less than the value of the plan, but they get the money while they are still alive. It’s a way to alleviate current financial woes while still providing for loved ones after death.

Is Selling the Best Option?

You need to consider if you will be shortchanging yourself by selling your life insurance policy before you go through with it. What could happen is you sell your coverage, run out of money after five years, but you live for ten. Selling your life insurance policy is not a decision you want to rush into, as you need to remember that you will ultimately have more money if you wait. Before you sell it, consider if cashing in on the policy will still leave your loved ones with enough money to preserve their standard of living and keep them out of debt.

Shop around for Bids

If you decide to sell your plan, make sure you get a number of competitive bids. You want to get the most money possible because it is an irreversible decision. Make sure the winning bidder is someone you can trust. Before you accept an offer, make sure you are not settling for less than you should just because you are hurting for cash. Again, you don’t want to sell yourself short for a temporary gain.

Don’t Forget about Your Beneficiaries

Don’t forget that the sale affects your loved ones who will be left behind. Your best option may be to keep your coverage and let your beneficiaries receive its full value when you die. If you shop around for competitive bids and believe that the amount you will receive for your policy is sufficient to still provide for them after you’re gone, then selling may not be a bad idea. However, if the bids don’t come close to what your plan is worth, you might want to hold off on selling for your loved ones’ sake.

Select Insurance Type:
Enter Zip Code:

You may also be interested in