FAQ's for Selling a Life Insurance Policy

More and more life insurance policy holders are hearing about the concept of being able to sell their existing policy for a cash payout.  While there are plenty of opportunities available, there are still some aspects that everyone should be aware of; check out these common questions to get answers!

I'm 42 and in great health; will someone purchase my policy?

The standard answer to that question would be no.  The types of life insurance policies that are purchased are generally from those who have a serious illness.  The other group that would be considered are from senior citizens that are around 75 to 80 years of age and over.

How long does my policy have to be in effect?

A life insurance policy needs to be at least two years or older in order to be considered for purchase. 

What is the best way to sell?

There are different companies around that will purchase life insurance policies via intermediaries and other methods; however the most efficient and effective way to sell is with a company that deals directly with the customer. 

If I have further questions, whom should I speak with beforehand?

It is recommended to seek a reputable life settlement funder, or a broker if preferred, or speak to their insurance agent. Speak with your tax professional before proceeding may also be helpful, since by law, the companies that purchase life insurance policies do not have the ability to legally advise of anything within the process. 

If you are one of the thousands of individuals asking "Can I sell my life insurance policy?", hopefully these FAQ's helped you understand the process a little better.  If you are in need of cash, and have an unwanted life insurance policy, consider selling today.