Sell My Life Insurance Policy
An improved financial situation might compel you to sell your life insurance policy. Such a decision must be carefully thought out.
Thinking Through the Process of Selling an Insurance Policy
Circumstances in life do change. At one point, purchasing a life insurance policy seemed like a good idea. In fact, taking out a life insurance policy was more than just a good idea. The eventual settlement from the policy would be earmarked to cover costs and expenses surviving beneficiaries might find affordable. Common expenses include:
• Mortgage payments on a home
• Operational costs of running a business
• College tuition for surviving children
All the costs related to these three things may still be in place after your passing. What might change, however, would be the need for a life insurance policy to pay for them.
A Change in Financial Circumstances
A great many things can lead to a change in someone’s financial situation. For example, a business that previously turned a $70,000 per year profit could experience a huge uptick in business. A small cement masonry business, for instance, may conceivably sign long-term contracts with several corporations and see profits jump to $200,000 per year. Additionally, the value of a home might grow far beyond even the most optimistic expectations. A spouse previously dependent on another spouse may launch a new and successful career. When a financial situation improves so dramatically, asking “How can I sell my life insurance policy?” makes sense.
Rushing into selling the life insurance policy, however, wouldn’t make sense.
Buying and Selling Life Insurance Policies
The average policyholder doubtfully has a buyer available to take the life insurance policy off his/her hands at a nice premium price. The policyholder must go to a broker who specializes in policy sales. The broker shops the policy to investors looking to earn a profit on their purchase of the policy. Do not look at this transaction as something that must be rushed. Discuss the most realistic and attainable price with the broker. This way, the transaction works to your benefit as well as that of the investor.
Seriously Think About the Financial Landscape
Once the life insurance policy has been sold, it is gone. The payoff from the sale becomes the compensation for the original investment in premiums. If you truly no longer need to carry the life insurance policy, asking “Should I sell my life insurance policy?” might be wise. Seriously think through your financial situation, though. In many cases, selling your policy can be a sound decision that reduces your financial burden