Can I Sell My Life Insurance Policy? The Surprising Answer

When you bought life insurance, chances are good that you expected it to be many long years before your policy became relevant. Most people buy life insurance when they are healthy and have little expectation of dying. The payout of the policy then becomes a "dormant" asset, a chunk of money that may eventually be accessible to your family, and which you are paying for every month, but which you cannot do anything with. For most people, this is not an issue and it's something they don't think about—you'd probably never wonder whether it's possible to sell your policy.

However, if you find out you have a life-threatening illness, you may suddenly view your life insurance very differently. Suddenly, insurance money that no one can touch until after you are gone may not seem like such a reassuring thought. With major terminal illnesses come medical bills, often massive ones that could put you and your family deep in debt. During these times, you may also be asked to make difficult decisions—potentially even denied treatment that you cannot pay for. These costs can dwarf the funeral expenses and other costs you expected your life insurance to pay for.

It's at this time that people begin to seriously ask "can I sell my life insurance policy?"

Many people are surprised to find that the answer is yes. There are specialized insurance trading companies that can purchase a life insurance policy from you. This is not the same thing as canceling a policy or asking for an early payout; instead, it is known as a viatical settlement.

When you sell your insurance policy, you will be paid a lump sum equal to a fixed portion of the eventual policy value. This money is yours immediately to use as you see fit: it can help offset medical bills, or it can help you transform the quality of your care and day-to-day life. It may even be used to achieve a longstanding life dream. There are no limits or restrictions on how you use the profit from your sale. The company that purchases your insurance policy will take over paying the premiums, and will become the policy beneficiary.

Obviously, this represents a trade-off. When you sell your policy your relatives will no longer receive money to help with expenses after you pass. On the other hand, if a life threatening illness has made expenses today much greater than expenses tomorrow, it's often worth it. Contact us at Asset Funding Corporation today and see if you qualify!