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!

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. 

Living with Cancer: Beyond the Diagnosis

A cancer diagnosis can be bad news, but nowadays, it's not necessarily a death sentence. With modern medicine constantly advancing, cancer survival rates continue to improve. That being said, there are certain truths that emerge from a cancer diagnosis, from the physical to the financial.

The Treatments can take their Toll

It's almost a cliché at this point, but they say that the treatment of cancer can almost be as bad as the cancer itself. That's because certain treatments can be painful and traumatic in their own right. Nausea, diarrhea, constipation, sores, pain, and fatigue are all possible side effects to chemotherapy, for instance. These side effects can be intense and can actually scare off some patients. Though this treatment is a mountain to climb, chemotherapy still remains one of the most effective methods of treating a wide variety of cancers.  

The Procedures can be Expensive

Cancer treatments are pretty advanced and, if surgery is required, can be pretty invasive. On top of this, they may span months or even years, while the patient continues to rack up debt. Before long, surviving the bills is almost as difficult as surviving the diagnosis and treatment. 

Affording care is not a hopeless endeavor, however. Financial help for cancer patients is available in several forms. Charity and non-profit organizations are there to help certain causes. If that's not an option, there are opportunities for people with life-threatening illnesses to sell off their life insurance policies for lump sums. 

Remission is Not Necessarily the End

While "remission" is a word that every cancer patient hopes to hear (and sooner rather than later), it doesn't necessarily mean that they're completely out of the woods. Remission simply means that the cancer symptoms have ceased. Doctors are usually hesitant to label cancer "cured," as it's nearly impossible to predict whether the disease will return. But with each passing year that a person stays in remission, there is hope -- as it continues, the chance of relapse decreases. The key to cancer survival after a remission diagnosis is regular checkups to monitor progress. 

A cancer diagnosis is the first step in a long journey. For those about to embark on it, it's best to familiarize themselves with what lies ahead so that they are prepared mentally, physically, and financially. 

How to Sell a Life Insurance Policy

At some point in time or another, many people are approached about purchasing life insurance policies. Most opt to get them because they want to make sure that their families remain financially stable after their death. However, if life hits you with a life-threatening illness, selling your insurance policy may be all that stands between you and crippling debt or worse.

After all, when you face an illness, there are many factors to consider. Ask yourself the following questions:

• Will you need extensive treatment to combat the disease? 
• Will you require any expensive medications? 
• Will you need a wheelchair, a handicap-friendly vehicle or any other equipment?

• How much will your insurance pay for? 
• Will you be able to work with the illness?
• If not, will this affect your ability to handle normal expenses (e.g. groceries, car payments, mortgage payments, etc.)?

If the answers to these questions have you in a panic, you should consider the possibility of selling your insurance policy. Here are a few of the steps that you will need to take in order to do so.

Have the policy appraised.  This will tell you the value of the policy and what it will sell for. While some people will claim that you aren't getting your money's worth by selling ahead of time, the reality is that you are surrendering the policy for a much higher rate than the cash value that you would receive from the insurance company. If you have an illness that entails a lot of expenses, chances are you would run out of money and let the policy lapse anyway. At least this way you get a significant amount of money for it.

Locate a buyer.  Once you know the value of the policy, it’s time to find a buyer. This is the person (or company) that will take over the monthly premiums of the policy and become the benefactor when you, the original owner, pass. It is important to note that when you sell your policy you are not cancelling it -- you are simply switching who owns the policy and who will be responsible for maintaining the payments. 

Talk to someone.  Since selling a life insurance policy is a huge financial decision, it is important for you to talk to a financial advisor or other expert about it. An expert will help you determine whether this is the right course of action for you, so that you can confidently say, “I am going to sell my life insurance policy.” Also, it is important to talk to your family about the decision and so that they understand why you are selling your policy and what it means for them. Your family will undoubtedly be supportive of any decision that helps you get treatment and live a comfortable life. 

Strapped for Cash for Your Treatments? Get Help

If you have a life-threatening illness, the last few years can't have been easy for you. Even though the media is claiming that the economy is slowly bouncing back from the recession, many people aren't out of the woods yet -- and if you are suffering from a serious illness, you're probably one of them. If you've finally reached that place where you're not sure how you will pay for your next treatment or mortgage bill, don't despair! Here are a few ways that you can get the funding you need.

• Viatical Settlement – People with an active life insurance policy may have the option of selling it for cash so they can fund everything from their cancer treatments to their trips to the grocery store. The way that this settlement works is that the holder sells their policy to a third party in exchange for cash. The third party then becomes the new owner of the policy and takes over paying the monthly premiums. The great thing about this option is that people are able to get the much-needed cash in their hands quickly.

• Sell the Home – If a person owns a home, it may be time to find out how much equity they have in it. If they’ve been in the home for a decent amount of time, selling it at a fair price will probably bring a large amount of money their way. Real estate experts say that the homes that sell the quickest are the ones that are priced to move. Once the home is sold, it’s smart to move in with friends or family until everything is settled.

• Garage Sale – Yard sales are an effective way of earning money quick. Once people realize the severity of their financial situations, they are more willing to part with their personal possessions. They can also ask family members and friends if they have any items to donate to the sale so that it generates more of a profit. If enough people were willing to donate, the sale could be turned into a neighborhood-wide event. 

When people have life-threatening illnesses, they have to be willing to think outside of the box to make ends meet. Selling one's home, having a garage sale or opting for a viatical settlement are just some of the ways that people can ensure that they have the funds they need for care and day-to-day expenses. 

Benefits of Selling a Life Insurance Policy

Too often, the average American family is left with very few options when it comes to paying for health care. The average family now requires two means of income to survive, according to the latest statistics. The "middle class" is now the equivalent of what the poorer classes were back in the 1970's, and with new taxes looming in the future, one may seriously question whether they will be able to meet the majority of their bills.

What methods do we have at our disposal, especially if we are faced with medical bills stemming from a critical illness? For one thing, if faced with a serious illness, you probably have already experienced the high costs associated with battling the injury, taking the medication and so forth. Take a look at some of the benefits of selling your life insurance policy.

Instant Cash
Selling a life insurance policy generally grants the seller a cash buyout, leaving one with an ample some of money to utilize as they see fit. If struggling for survival while dealing with a disease or serious illness, and you are missing many days of work wondering how you will pay the bills, it is an excellent source of income.  

Providing for Family
In the event of a serious illness, one would always want to ascertain that they family would be taken care of if the worst-case scenario would happen; selling a life insurance policy provides just that, allowing for a cash buyout. Peace of mind is the most important thing when faced with this type of situation, so it is a great route to consider.

Get Rid of Debt
Debt is a serious issue that plagues our society; what better way to ensure your family's future than by using cash to pay off whatever debt is over your head? Getting-debt free should be a priority. If you have ever asked yourself "Should I sell my life insurance policy?", the answer should be clear, especially if you are in need of cash.