October 28, 2018
Can I Sell My Term Life Insurance Policy For Cash?
Many policyholders ask if their term life insurance policy is a fit for a life settlement, even though there is no cash value. While that is true that term policies do not accrue a cash surrender value nor payout dividends (in most cases), there can still be a hidden value to the policy by utilizing a life settlement.
Only a shocking low 1-2% of all in-force term life insurance policies ever actually payout, and put another way over $55 BILLION in term coverage is lapsed every year.
All too often, a policy holder reassesses their financial situation and, once the kids are grown and the mortgage is paid off, the impending premium increases just don’t make sense any more. Ask the insurance company what you can do, and they will likely offer to payback any unused premium if you’re lucky (through a cash surrender) and try to sell you a smaller term policy – if you are still insurable. They certainly will not share that you may find a better deal in a life settlement!
When you do look into a life settlement for your term coverage, it does help if the policy still has a conversion option to a permanent life insurance policy. But even when that is no longer an option, some term policies can still be converted to a cash benefit with a life settlement. A first step a policy holder can take is to explore our Life Settlement Calculator to see if a life settlement may be an option for them. This is just a rough estimate, so it is a good idea to speak with one of our representatives to discuss the specifics of your case as each policy is so unique.
If the estimate fits your needs, our staff of experts will assist in gathering all of the information to fully evaluate your policy. Our team can make all necessary information requests (some recent medical records and policy verification information) on your behalf. Contact us today!