BackWhat's the Market Value of an Unwanted Life Insurance Policy?
Article submitted by James H. Lance of Life Settlement Consultants.
For more information, he can be reached at 1-888-417-1772 or by e-mail: sellyourlifepolicy@earthlink.net.
You know why you initially bought your life insurance policy. As time passed, the need was well served, but now the policy may no longer be wanted or needed. Maybe it's under-performing or too expensive.
Let's assume you're retired and debt free... have sold your business interests and... want to travel and enjoy life to its fullest. When changing circumstances cause you to evaluate your assets, you'll want to make practical, unemotional financial decisions (to sell or not sell).
If you have an unwanted life insurance policy, you should ask, "What is it worth?" Your insurance agent can advise you about its insurance company cash surrender value and accelerated living benefits.
However, before dropping a life policy or returning it to your insurer for its cash surrender value, be sure you determine whether it might have a greater 'hidden' value in the multi-billion dollar secondary market for life insurance policies. This would be like selling the house you bought new to a buyer other than the company that originally built it.
If your policy qualifies, you may turn it into a lump sum of cash greater than its cash surrender value. In what's labeled a "Life Settlement" you sell your life insurance policy to a third party institutional buyer that pays all future premiums and ultimately collects the death benefit.
Stripping away emotions associated with selling one's life insurance policy and looking at the transaction in dollars and cents, it really comes down to this ... in a life settlement you'd get more cash for your unwanted policy than you'd get from your insurance company, or you wouldn't do it.
Knowing you may have questions, a 5-minute recorded message that should answer most of your questions is available at 205-969-8909.