Selling a Life Insurance Policy: Steps to Take and What to Expect

You can sell your life insurance coverage for a settlement. Life Settlement and Viatical Settlement are the major means to offer life insurance. These two alternatives have considerable overlap, but we’ll explain the important distinctions below. Marcan Insurance can help you navigate this issue well.

Policy Sales Methods 

If one needs money for retirement, a financial emergency, or doesn’t want to pay the payments, they may sell their life insurance policy. 

Life and viatical settlements include selling your insurance policy to a third party for cash. The buyer then pays policy premiums. They receive the policy’s death benefit after your death. 

Life Settlements 

Life settlements are for healthy seniors who want to sell their life insurance policy. Life settlement eligibility includes policy age, policy minimum, etc. 

Life settlement payouts are usually higher than policy cash surrender values but lower than death benefits. Your broker and buyer choose the figures. As income, life settlements are taxable. As you’ll see, viatical settlements are different. 

Viatical Settlement: Selling Your Policy 

Viatical settlements, unlike life settlements, are for life insurance policyholders with life-threatening illnesses, decreased life expectancy, or chronic health conditions. Life settlements include extra qualifying restrictions. 

You can spend the cash award tax-free and unregulated, unlike life settlements. Who doesn’t want financial freedom? 

A viatical settlement broker can help you complete out a simple application with your medical documents, diagnosis, and stage of disease if you qualify. Your application can be handled in a few business days, and you can agree on a total cash settlement in writing. 

Can I Sell Life Insurance? 

Abrahms may help you sell your life insurance policy if you have a disease that is life-threatening. 

If you’ve had your life insurance policy for two years and it’s worth at least $100,000, you may be eligible to cash it in for a hefty viatical payment. 

How to go about Selling My Policy

Life settlement businesses like Abrahms acquire life insurance policies from viators (sellers). After contacting a life settlement business to sell your insurance, you’ll verify, examine, and sign the papers. 

You will get a lump-sum cash settlement as the viator (seller) of your policy. You may spend your tax-free, unregulated payment anyway you like! You can spend the money however you like! 

After the viator (seller) dies, your life insurance broker will pay the monthly premiums and get the death benefit. 

How much can I get for my life insurance policy?

Most viatical settlements pay 50-70% of the policy’s face value, depending on the policy and its size. A review will need to be done to give you a closer estimation.

Can I Spend It? 

Viatical settlements provide you financial independence that may be critical for you at this time.

You may spend your lump-sum viatical settlement reward, whichever you like after selling your life insurance policy! You may use your money for medical bills, dream trips, early retirement, and more! You get to decide.

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