Getting The Most Cash For Your Life Insurance Policy
What happens when life insurance premiums become too expensive, or when a person determines that life insurance is no longer necessary, and wishes to be free of the additional monthly expense? Too often, people let their insurance policies lapse, losing years of monthly premium payments that they have paid. But don’t worry, there are ways to get the most cash for your life insurance policy.
Most people don’t realize that you can sell your life insurance policy in a Life Settlement and get more cash for your life insurance policy than the surrender value. This may also be known as reverse life insurance.
Is Selling Your Life Insurance Safe?
This is a common question. There is a lot of fear-mongering about the topic of reverse life insurance and getting cash for your life insurance policy. Much of this is perpetuated by the insurance companies themselves. It is not in their best interests to encourage or promote their clients utilizing a life settlement broker, and so they may caution policyholders against fraud or scams.
Don’t be intimidated by warnings about fraud, especially from your life insurance company. Insurance companies would much rather you surrender your policy to them for cash value than getting cash for your life insurance policy with a Life Settlement.
While it is true that seniors are often targets of scams, particularly in the areas of financial management or at the hands of unscrupulous in home care services, reverse life insurance is a legitimate practice and as long as you choose a licensed, reputable life settlement broker or a licensed life settlement provider in your state, there should be no problems.
While there has been some controversy about the life settlement industry, it has largely been around the investment end of life settlements, not the selling end. As the policyholder, your part in the transaction is a one-time only deal.
The reality is that if you choose to sell your life insurance to help offset the costs of homecare or medical expenses, you are well within your rights to do so. All you need to do is make sure you get the best price for your policy. It does boil down to selling your policy to the highest bidder, and although that sounds a bit harsh, there is a lot of competition. This competition can be used to your advantage to help you get the highest price.
Choosing The Right Life Settlement Broker
The best practice is to shop around. Talk to more than one life settlement broker, preferably several. Because of the competition, offers may vary. Let them know you are shopping around, and that you are informed. Be sure that you are contacting licensed, reputable brokers or providers.