Can I Sell My Universal Life Insurance policy?
When considering long-term and aging care needs, one of the first places to look is at any life insurance policies the individual may hold. While you may be interested in selling your life insurance policy, there may be questions about whether or not a universal life insurance policy will qualify for a life settlement. Here’s what you need to know:
What is universal life insurance?
A universal life insurance policy gives policyholders options on how much of a premium they should pay, what their death benefit should be and more. A portion of the money you pay in premiums is credited to a cash value account which is tax deferred. The death benefit of the policy can also be changed based on your preferences. To access the money in the policy, you can obtain a loan through the cash value of the policy.
Selling your life insurance policy in a Life Settlement – Do universal life insurance policies qualify?
Yes, you can sell a universal life insurance policy as a life settlement. Policies over $100,000 may qualify for those who need the funds. In this instance, qualified policy owners always receive more than what they would have originally if they cashed in the policy through the insurance company.
Why would you consider selling your life insurance policy?
Most people sell their universal life policies to receive larger amounts of cash that is needed for other expenses. Another reason would be if there was no longer a need for the coverage. Being able to pay medical and long-term care expenses can provide a peace of mind while alleviating paying premiums that could potentially become a financial burden.
This is a viable option to consider when estate planning for the future. For more information on a life settlement and how a universal life insurance policy can be applied, contact Reverse Life Insurance today!