How Much Can You Get For Selling A Term Life Insurance Policy?
If you are considering selling your life insurance policy, there are a few things you need to know. While selling your policy can provide you with some extra cash, it is important to weigh the pros and cons before making a decision. In this article, we will discuss what you need to know about selling your term life insurance policy.
Factors That Determine How Much You Can Get For Selling Your Policy
| Factor | Impact |
|---|---|
| Age | The older you are, the higher the offer will be |
| Health | If you have a health condition that reduces your life expectancy, the offer will be higher |
| Death Benefit | The higher the death benefit, the higher the offer will be |
| Premiums | The lower the premiums, the higher the offer will be |
The average life settlement is 20% of the policy’s face value, according to the Life Insurance Settlement Association (LISA). However, the exact amount you can receive for your policy will depend on various factors, including your age, health, premiums, and the type of policy you have.
Alternatives to Selling Your Policy
Before deciding to sell your policy, it is important to consider the alternatives. Depending on the type of policy you have and your financial goals, better options may be available. Some potential alternatives include:
- Converting your term life insurance to a whole life policy
- Adjusting the death benefit
- Withdrawing from the cash value
- Taking out a loan
We recommend speaking to a financial advisor or estate planning attorney before selling your policy.
Conclusion
Selling your term life insurance policy can provide you with some extra cash, but it is important to carefully weigh the pros and cons before making a decision. Consider the alternatives and gather offers from at least three companies before selling your policy. And remember, the amount you can receive for your policy will depend on various factors, including your age, health, premiums, and the type of policy you have.
