Understanding Life Insurance: Reasons to Sell Your Policy

It's understandable that individuals, married couples and parents get life insurance for themselves and their children as protection from the unexpected and the eventual. However, sudden life changes and events can make many people realize that life insurance is an unnecessary expense.

When this occurs, one question many ask is, "Can I sell my life insurance policy?" The answer is yes. A life insurance policy is a personal property, just like your home, car or stocks. You have the option to sell your policy, just like you can sell other personal items.

To help you better understand life insurance policies and the reasons why people sell theirs, we've provided some insightful information on the subject.

Understanding the reasons for having a life insurance policy

As mentioned above, many purchase life insurance to protect themselves and their family.

In the unfortunate event that you pass away, your life insurance policy will help your loved ones pay any remaining expenses, such as mortgage payments and bills, as well as the funeral expenses. Your spouse and children will also receive financial support for future living.

In addition to protecting your personal interests, a life insurance policy can also be used to help your business. If you die and were integral to the operation of the business (owner, for instance), your life insurance policy could protect it from financial loss, liability, or instability.

If you were to develop a serious illness unexpectedly, a life insurance loan could also provide you with financial support (you can borrow the cash value that you've accrued over the years); however, these loans are considered too risky by most and often land people in debt sooner or later.

Why people decide to sell their life insurance policy

The reasons for dismissing a life insurance policy vary based upon each individual's needs and circumstances. Usually, a person will decide that the policy is unnecessary to their current situation and lifestyle. Below are a few possible reasons for selling your life insurance policy:

• Your financial situation has changed and the policy is no longer affordable
• You are ill. Selling the policy provides necessary funds to cover financial expense
• You need cash to afford an alternative means of healthcare

Determining how much your policy is worth

One common question people ask when considering selling their life insurance policy is, "How much is my policy worth?" Most companies send an annual statement to their customers, but you can also find out by contacting the company to request the exact cash value of your policy. Or, you can fill out our no-obligation evaluation, to find out how much your policy is worth.

How to go about selling your life insurance policy safely and effectively

Because selling a life insurance policy is a major financial move, it's in your best interest to seek an expert to help you. Asset Funding Corp helps you sell your life insurance policy quickly and conveniently. We provide you with an application form to fill out (no fees apply) and once we receive it, we gather the medical and insurance information, and offer the highest settlement payoff. If you accept the offer, we buy the insurance policy and you receive the funds. We also don't require a minimum policy value amount in order for you to qualify.