Monday, 16 February 2015

No Longer Need Your Life Insurance?

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No Longer Need Your Life Insurance?


Turn Unneeded Life Insurance Policies into Cash

In these difficult financial times you may be looking for ways to cut back on expenses. Letting your life insurance policy lapse or surrendering it for the cash value may seem like a good idea. But did you know your life insurance policy is an asset that you can actually sell?

Until recently, the only options for liquidating an underperforming or unneeded policy was to let it lapse, sell it back to the original insurer for its current net cash surrender value, or to exercise a non-forfeiture option. In a life settlement, the sale price is less than the policy's face value, but is higher than the policy’s net cash surrender value. The price can range as low as 3% to as high as 30%of the face value of the policy (death benefit), but usually averages to about15% of your policy's face value. 

The value in the life settlement transaction is determined by a number of factors including: your age and medical condition, the type of insurance, the amount of premium payments, and the status of loans on the policy.

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