Selling your life insurance policy
Selling your life insurance policy
There are several situations in which selling your life policy is a good idea. Sometimes the simple elimination of the premium cost can dramatically improve monthly net income. However, its cash value may disqualify you for Medicaid or the death benefits may be of less value to the family at present than cash availability. Often the cash value offered to the policyholder is not the best deal for the insured-owner. The insurance professional help needed here is from one who is committed to getting you the best price for the policy.
Selling your life insurance policy is an oddity in the insurance industry. Many professionals take a dim view of the practice and, perhaps rightly, believe that it violates several core values that they hold in their working life. It may seem improper to own a policy on a life in which the owner has no insurable interest, and equally improper to regard a valuable contract acquired for specific reasons as a commodity with an independent cash value.
Getting started
Begin with some basic online education about this interesting niche sector of the insurance industry to discover why it has developed; the issuing companies have traditionally offered very low surrender values while encouraging policy holders to preservethe coverage if possible.Then continue your familiarity with life settlements in discussion with some working professionals in this practice.
Some Insights
There are two levels of marketing in this secondary insurance market: retail, and wholesale. In the retail section, buyers contact the policy owners directly, negotiate a price, and later usually re-sell the policies to brokers who work in the wholesale sector. These brokers can also represent owners directly, and their efforts will generally produce more dollars for the owners. They are usually available, not in public promotions, but via insurance professionals who are familiar with just how this practice actually works. This is why your best pathway lies through online research and then on to working insurance professionals in this space. They are not always easy to find.