Selling your life settlements has been trending for the last few years, and for those who are unaware, selling of your life insurance policy for cash and giving up the policy benefits to the buyer is what life settlement is. Usually, people sell their life insurance policy for various reasons like when they can’t afford to pay the premium, or don’t need the policy anymore, need to clear debts, have some urgent need of cash, etc.
Your policy is evaluated and your medical records are analyzed. Since selling the policy is not everyone’s cup of tea, it is a complex procedure involving financial and legal proceedings. Not only this, but it takes some effort to find a buyer and you may have to consult a professional, competent and licensed life settlement consultant or broker. He can guide you with the procedure and regulations involved in the process of selling your life insurance policy.
To sell the life insurance policy, you need to follow certain procedures and whether you are qualified or not to sell the policy depends on certain factors. We are listing below some of the factors or your knowledge and benefit so that you can assess where you stand.
- Type of policy: The first and foremost criteria is the kind of policy you own. The policies that fall under the criteria where you qualify to sell your life insurance policy are Universal Life Policy, Whole Life Policy, Term Policy, Convertible Term Policy, Joint Policy, and Second-to-Die life insurance policy. The policies where you don’t qualify for a settlement are Standard Term Policies and Premium Financed Policies.
- Age of the policy: If you plan to sell your life insurance policy, the life settlement company checks for the age of policy that you are willing to sell. Every state declares a minimum number of years i.e since how long you’ve owned the policy. This might be overlooked in cases, like divorce, the death of a spouse, etc. However, this also depends on the state you live in. In certain states, the minimum number of years you own the policy can be overlooked in case of death of spouse or divorce. The things work fine if the policy is 2 years or more.
- Value of the policy: The value of the policy is the most concerned thing to life settlement companies, buyers or life policy brokers and they quite open with that. There is a specific structure that is designed by companies or professionals who deal with policies. A good policy amount that is easily qualified for with value of $100,000 or more depending on other factors too. The bigger is the value of the policy the better are the chances of its quick sale.
- Age of the policyholder: 65 years plus people quickly qualifies for the life settlements because the older is the person the more valuable is the life settlement. Since an old person has a low life expectancy and the buyer gets the benefits when the older policyholder dies. The combination of the age and the medical records gives an estimate of the life expectancy of the seller.
If you are looking to sell your life insurance policy and need professional and expert advice then you must consult an experienced advisor so that you can get maximum return. A seasoned professional can get a higher value life settlement value for your life insurance policy.