Life insurance is personal property. It is owned by you, not the insurance carrier. People are often surprised to learn that they can sell their policy to a license institutional life insurance buyer.
People have been selling their life insurance for over 20 years. Selling your life insurance is a regulated, viable financial option.
What are some of the reasons people sell their life insurance?
- The policy is simply no longer needed.
- Policy Premiums have become too expensive.
- The policy has not performed well and is losing money.
- Funds are needed for independent or assisted living.
- Grandparents want to give the money to their beneficiaries while they are still alive.
- There are a million reasons people decide they would rather have money in exchange for their life insurance rather than having to pay expensive and costly premiums.
Who qualifies to sell their life insurance?
Generally, most types of life insurance policies with an insured(s) over 70 may qualify.
- Term Life
- Universal Life
- Survivorship Universal Life
- Guaranteed Universal Life
Just the Facts:
- The recent COVID-19 pandemic hit retirement accounts hard and caused millions to lose their jobs. Many of these workers are seniors who have had to continue working due to the senior retirement gap. Life settlements can be a source of urgently needed funds.
- Less than 1% of the population is aware they can sell their policy.
- Per Conning over 200 Billion in life insurance covering seniors lapses that could have been sold each year.
- Selling your policy pays policyholders on average 6 time your cash surrender value.
- 43 states and Puerto Rico have life settlement laws that provide substantial consumer protections in the sale of a life insurance policy.
- Nine states require carriers to disclose that there are alternatives to the lapse or surrender of a life insurance policy when a policy is in jeopardy of lapsing, which includes the life settlement option.
- The estate tax exemption increased to $5.5 million. In 2018, it skyrocketed to $11.18 million for singles and $22.4 million for married couples. This means policyowners who bought life insurance to pay estate taxes might no longer need the policies because they no longer have an estate tax issue.
- Because interest rates remain at historic lows, carriers are unable to make money the way they sued to from investments. To make up for it, many carriers have increased their cost of insurance (COI) charges to customers. An option for policyowners to avoid increased COI charges in their premiums is to sell their policies.
- Baby boomers holding large amounts of life insurance: About 60% of Americans were covered by some type of life insurance in 2018. The value of total life insurance coverage in the U.S. was roughly $19.6 trillion at the end of 2018
"I sold my life insurance because I simply no longer needed it."
Dwayne
"I sold my life insurance because I needed money to pay for medical bills."
John
"I sold the policy I own on my parents because the premiums went up."
Jane
"I sold my life insurance to pay for my assisted living facility."
Margaret
Cashinvalue.com is a marketing company, not a provider or broker and does not represent sellers. Cashvalue.com will refer qualified sellers to the appropriate licensed buyer.