Picture it: you’re back in your early thirties and your second child is just a few months old. You decide that it is now time to make a huge investment in your life insurance. Although you may be still young, it is never too early to begin planning for the future. Should something happen to you, you would want your significant other and your children to be covered.
However, now that you have all grown and your children have already established their own families, incomes, and homes, you may be finding that a life insurance policy of that caliber is no longer necessary. Instead of putting that money toward an added monthly bill, you’d instead like to spend it at the country club in Basking Ridge, NJ.
Before you get ahead of yourself, though, you need to make sure you have the necessary information and resources to make the best decision for you and your family. The following is a breakdown of everything you should know if you are interested in selling your life insurance policy.
The process
To be able to sell your life insurance policy, it must be of at least a $100,000 payout value. But, if you meet prerequisite requirements, you’ll be happy to know you have options. In order to sell you life insurance policy for cold, hard cash, you must go through a process called a life settlement.
Essentially, you will need to look for a third-party company or buyer that will not only pay you, but they will also take on the responsibility of paying your monthly dues to your insurance company. Upon your passing, the life settlement company will then receive your initial life insurance payout. However, you will not receive the full payout amount, as they have taken on your monthly payments.
There is an online form where you can enter your information, including the amount of your life insurance policy, your existing diagnosis (if you have one), your age, and your gender. Depending on your answers, there may be more questions asked to gather the necessary information.
An option for those with illness
Alternatively, there is another option. As opposed to a life settlement wherein one of the top requirements is that the seller does not have a terminal illness, a viatical settlement is specifically for those who are suffering a terminal disease. Even though there are fewer stipulations for selling your life insurance policy through a viatical settlement, the minimum age and policy value are still applicable.
If you’re still hesitant overselling the life insurance policy that could guarantee temporary financial comfort to your loved ones, keep in mind that if everything goes smoothly, you could have money in your hand in a matter of weeks. Still on the fence? Consider the possibility of taking advantage of selling your life insurance policy now. Not only would your monthly bills lower, but you could use that well-deserved money to help and spend time with your loved ones while you’re still here to enjoy it alongside them. Maybe even put some of that money toward a family vacation before you join a retirement community in Woodstown, NJ.
Once you’ve decided on selling your policy and finding a reliable way to obtain the price, you can focus on all the ways you can best spend it. Whether you’re planning to get a headstart on your grandchildren’s college funds, paying off remaining debts, or spending your retirement in style, you are armed with the knowledge you need and prepared to get the money you deserve.