The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Information on this website may not be current. This website may contain links to other third-party websites. Such links are only for the convenience of the reader, user or browser; we do not recommend or endorse the contents of any third-party sites. Readers of this website should contact their attorney, accountant or credit counselor to obtain advice with respect to their particular situation. No reader, user, or browser of this site should act or not act on the basis of information on this site. Always seek personal legal, financial or credit advice for your relevant jurisdiction. Only your individual attorney or advisor can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, contributors, contributing firms, or their respective employers.
Credit.com receives compensation for the financial products and services advertised on this site if our users apply for and sign up for any of them. Compensation is not a factor in the substantive evaluation of any product.
This post originally appeared on Money Talks News.
If you have a life insurance policy you no longer want or can’t afford, stopping payments or simply cashing it in aren’t your only options – or your best ones.
Many people have sold their policies in a life settlement sale and come out the other side with cash in hand — but it isn’t easy. In the video below, Money Talks News founder Stacy Johnson explains how life settlements work. Check it out and read on for more.
You can convert your life insurance policy into cash now, but the process is complicated. First, you’ll need to have your life insurance policy appraised to determine the selling value. Then, you’ll need to find a buyer. Once you have a buyer in place, you’ll receive a cash settlement and the buyer will pay any premiums and collect the benefit when you die.
Finding a buyer on your own can be complicated, if not impossible, which is why many people choose to either sell their policy to a settlement company or to a third party through a life settlement broker. If you sell to a settlement company, you’ll receive a percentage of your policy’s value in cash. If you use a broker, you may also pay a commission to the broker. However, a broker may be able to find a better deal than you would on your own.
There are a few things you should consider before selling your policy. For example:
Selling isn’t all bad, especially if you no longer want the policy or you can’t afford the premiums. If you do decide to sell, take these steps to make sure you get the most money.
The bottom line: If you don’t want your life insurance policy, it’s worth a call to find out what you could get, but be cautious about going through with it. Make sure you’re getting the best possible deal before you sign off.
More From Money Talks News:
Image: Fuse
March 11, 2021
Personal Finance
March 1, 2021
Personal Finance
February 18, 2021
Personal Finance