Selling your life insurance policy, also known as a life settlement, can be a viable option for policyholders who no longer wish to or are unable to continue paying premiums. If you are considering selling your policy, here are a few things you should know.
First, it is important to understand that not all life insurance policies are eligible for a life settlement. In general, policies with a face value of at least $100,000 and owned by individuals over the age of 65 are more likely to qualify. It is also important to note that the policy must be in good standing, meaning that premiums have been paid and the policy has not lapsed.
When selling a life insurance policy, it is important to be aware of any taxes or fees that may be associated with the sale. In most cases, the proceeds from a life settlement are considered taxable income.
Before selling your policy, it is advisable to consult with a financial advisor or a life settlement company. These professionals can help you determine the value of your policy and assist you with the entire process.
There are a few potential benefits to selling your life insurance policy to a company like Abacus Life:
Immediate cash payment: If you sell your policy to Abacus Life, you may receive a lump sum payment that you can use for any purpose you choose. This can be especially useful if you need cash to cover unexpected expenses or if you want to invest in something else.
Relief from premium payments: If you sell your policy to Abacus Life, you will no longer be responsible for paying premiums. This can be a relief if you are struggling to make premium payments or if you no longer need the policy for its intended purpose.
Ability to sell a policy you no longer need: If your circumstances have changed and you no longer need the life insurance policy, selling it to Abacus Life can be a way to get some value out of it rather than letting it go to waste.
Overall, selling a life insurance policy can be a good option for policyholders who no longer need or can afford their coverage. It is important to do your research and consult with Abacus Life to ensure that you are making the best decision for your financial situation.
There are a few factors that will determine whether you qualify to sell your life insurance policy to a company like Abacus Life:
The type of policy you have: Not all types of life insurance policies can be sold. Abacus Life typically purchases policies that are term life insurance, universal life insurance, or whole life insurance.
The condition of the policy: In order to sell your policy, it must be in good standing, with premiums paid up-to-date and no outstanding loans or liens against it.
Your age and health: Abacus Life may ask some medical questions as part of the process of purchasing your policy. Your information is protected by HIPAA privacy laws.
The value of the policy: The value of your life insurance policy will be based on a number of factors, including your age, the type of policy you have, and the death benefit amount. If the policy has a low value, you may not be able to sell it.
To find out if you qualify to sell your policy, you can contact Abacus Life and ask them to review your policy. They will be able to tell you if your policy is eligible and give you an estimate of how much it is worth. You can also use their online Policy Valuation calculator to give you a free estimate. Click here to learn more about Life Settlements.