April 01, 2022
Are you aware that your life insurance policy is an asset you can sell for cash?
If you no longer need your life insurance policy or it has become too expensive, you have more options than just stopping premium payments and having your policy lapse without value or surrendering it to the insurance company for its cash value.
Instead, you can sell your life insurance policy to a third party for a generous cash payout – it’s called a “life settlement,” and it may better suit your current and future financial needs.
Below, we’ll answer three critical questions about life settlements and selling your life insurance policy for cash:
If you have any questions, such as can you sell your life insurance policy for cash, you can contact us, and one of our life settlement specialists will be happy to help you.
A life settlement is the sale of a life insurance policy to a third party for its market value.
In a life settlement transaction, the policyowner sells their policy to a third party and, in turn, receives a lump sum cash payment. The third-party buyer assumes responsibility for future premium payments and ownership of the death benefit. In some instances, you may be able to retain a portion of the death benefit.
Once the sale is complete, the cash payment you receive is yours to spend as you wish. Many people decide to use it toward healthcare costs or retirement expenses, but you can choose to put it into savings or pay for future travels, or anything else you want.
Most people who qualify for life settlements are over age 65 and have a policy with a face value of at least $100,000. You can find more specifics on the eligibility requirements on our life settlements page. Most policies that qualify are whole or universal life policies, but there are instances in which term life insurance policies may also qualify.
If you have been diagnosed with a chronic or terminal illness, you may also be eligible for a viatical settlement. Viatical settlements have stricter eligibility requirements but can quickly generate financial resources for medical and other expenses during challenging times.
There are many advantages to life settlements, especially if you’re one of nearly half of all Americans concerned about running out of money in retirement. There are also some potential drawbacks to selling a life insurance policy.
Let’s look at some of the pros and cons:
The first step in selling your life insurance policy is identifying the right people to work with. You need experienced professionals you can trust to keep your best interests at the forefront.
Life settlement providers must be properly licensed and knowledgeable about the necessary regulations and requirements.
Some questions to get you started in selecting the right partner might include:
At Lighthouse Life, we strive to exceed all industry standards by being completely transparent with all fees and requirements.
We’re here to advocate for you and help you arrive at the best decision, even if that means a life settlement isn’t the right move for you.
We’ll help you through the entire process, including assistance with forms and approvals. Most policyowners working with Lighthouse Life receive funds from their life settlement in about 45 days.
Ready to sell your life insurance policy through a life settlement?
If you haven’t already, get started by filling out our eligibility form and see what kind of life settlement you could receive from Lighthouse Life. If you have any questions, our life settlement experts will be happy to speak with you and provide answers.