Can You Sell Your Life Insurance Policy If You Are Under 65?
If you are the owner of a life insurance policy, you may be able to sell it for cash on the secondary market, regardless of your age. However, the policy must have a death benefit, which is the amount paid to your beneficiaries when you die. The death benefit amount can vary depending on your policy type, age, medical records, and lifestyle.
| Policy Type | Can it be sold? |
|---|---|
| Whole life insurance policies | Yes |
| Term life insurance policies | Yes, if convertible to permanent life insurance policy |
| Universal life, indexed universal life, and variable universal life policies | Yes |
| Group life insurance and government-issued and employer-provided life insurance | No |
There are numerous reasons why someone would sell their life insurance policy. The most common reason is that they need money for an unexpected expense, such as medical bills, foreclosure or job loss. Another reason is that they no longer need the coverage because they have other assets to cover their expenses or have retired.
The process of selling a life policy is fairly simple and is called a life settlement or viatical settlement. You must find a buyer or broker interested in purchasing your policy. You can do this through online marketplaces or by contacting life settlement companies directly. Once you have found a buyer, you will need to complete some paperwork and sign over the ownership of your policy. The buyer will then make a lump sum payment to you as specified in the contract and continue to pay the future premium payments to the insurance company.
It is important to do your research when choosing a buyer for your policy. You should look for a reputable buyer with a good track record, and ensure that they are willing to pay a fair price for your policy. You should also be aware of the fees that buyers may charge and the tax implications of selling your policy.
While selling your life insurance policy can be a way to get extra cash, it does have some downsides. The main disadvantage is that you will no longer have coverage, and if you die after selling your policy, your beneficiaries will not receive any money from the policy. Additionally, some policies have a clause that prevents you from selling the policy, so be sure to read the terms and conditions carefully before selling.
In conclusion, you can sell your life insurance policy even if you are under 65. However, you must meet the requirements to sell your policy, and it is important to do your research before selling to ensure that you get a fair price for your policy and are aware of any fees or tax implications.
