How to Sell Your Life Insurance Policy for the Money Now
While the main purpose of life insurance is to take care of your family after you die, there are times when you need to access the money in the policy while you are still alive. You might need the proceeds to pay bills, reduce debt or settle other financial problems. Some life insurance policies allow you to cash out the policy. However, if you call your company and learn your policy does not allow this, you can still get the money out by selling your policy to a life settlement company.
Other People Are Reading
Instructions
-
-
1
Contact several life settlement companies to discuss selling your policy to them. Life settlement arrangements are designed for people who have life insurance but need the money now. You sell the policy to them, and they pay you a portion of the death benefit.
-
2
Study the material the settlement companies send you. Read the fine print on each agreement and make sure you understand the payment terms. Some life settlement companies will pay the money in a lump sum, while others will pay it in installments over a set period of time.
-
-
3
Select your company and complete the application for the life settlement arrangement you want. Make sure the information you provide is complete and accurate. You might need to check your life insurance policy for certain information, such as the effective date and the policy number.
-
4
Send the completed application to the life settlement company, along with your life insurance policy. Be sure to keep copies of all paperwork for your records.
-
1
References
- Photo Credit business image by peter Hires Images from Fotolia.com
