Can I Cash in on a Life Insurance Policy?

When people decide to purchase life insurance, they usually do so as a way to financially protect themselves and their loved ones. Whether the life insurance policy is designed for veterans and service members, or federal employees and non-federal employees, life insurance benefits are paid in a lump sum to the beneficiaries of a policy owner upon their death. Just as life insurance policies can be bought, some policies can be cashed in and sold to a third party.

Some policy owners may choose to cash in their life insurance policy if they have another life insurance policy, if they feel that their policy is no longer needed, or if they simply cannot afford to keep making payments on their policy, among other reasons.

Cashing in on a life insurance policy is an important decision that would affect a policy owner’s finances. Researching how to cash in and sell a life insurance policy and determining whether a policy is even eligible to be sold can be overwhelming. For this reason, a policy owner who is asking the question, “How should I go about selling my life insurance policy?” should consider using a professional service. 

By consulting a professional service dedicated to handling life insurance matters, a policy owner can find out whether their policy is eligible to be sold, and they can find out what parties they can sell their life insurance policy to. Life insurance policies can be sold to parties that are related and unrelated to the policy owner.

Life insurance policies can be sold to life insurance settlement companies, companies that make offers on and buy policies. A life settlement is the approved sale of a life insurance policy, from the policy owner to a third party, a life settlement provider, for a lump sum cash payment. The life settlement company that buys the policy assumes the responsibility of paying the premiums on the policy, and receives the payout of the policy from the life insurance company upon the death of the policy owner.

Life insurance settlement companies consider many factors when making offers on life insurance policies. Determining factors include the age and overall health of a policy owner, the cost of the premiums of the insured’s life insurance policy, and how much the policy is worth during the policy owner’s lifetime and at the time of death. For this reason, the amount of money one settlement company offers a policy owner may differ from the amount another settlement company offers.

Policy owners should seek assistance from a professional service, because doing so removes the stress of having to search for life insurance settlement companies themselves, and allows policy owners to make informed decisions. Professionals can connect policy owners to legitimate settlement companies, which eliminates the possibility of policy owners being cheated. Using professional services reassures policy owners that their life insurance policies are sold for what they’re worth.

No two life insurance policies are exactly the same, even if they’re offered by the same life insurance company, because they are designed to cater to policy owners’ individual, unique health and financial circumstances. Policy owners should be aware of their health and medical history, the kind of insurance policy they have, and the premiums that would have to be paid. The process of cashing in an insurance policy can be made easier and immediate with the help and advice of professionals who have policy owners’ best financial interests at heart.