There is a very active buy and transfer market for people looking to sell a term life insurance policy that is convertible. This is where a policyholder looks to sell their term or other insurance for a set cash amount and transfers the life contract to the buyer in exchange.
This is not a new market, but it is a growing one. Specialist agent companies will work with the upper tier of life insurance settlement brokers to provide the selling clients with the education needed so the selling customer understands the process and the highest price for their term policy can be received.
The age of the insured should be 55 and older. An age below that will not attract the best buyers or the top price. This is because (to be blunt) the seller has too many years to live if they are perceived to be too young and thus the buyer of the convertible term will have to wait much longer to collect the face value of the issue. This is why the age of the person selling is an important factor to determine price value.
Face Amount - Death Benefit
The market the top companies look for including the affiliates of American Investment Training is $250k face amount or minimum death benefit of $250,000. If you have a policy that is a little less, we can most likely find an attractive buyer. The death benefit is the amount of cash paid out to the beneficiary upon death of the insured. When selling life insurance, the beneficiary becomes the buyer or choice of the new buyer.
Cash Payout To Sell
Payouts to people looking to sell their term, universal life or other policy in cash can be anywhere from $70,000 to hundreds of thousands of dollars or more. Much of the cash payout amount is based on age, face amount, type of insurance the person is looking to sell and any outstanding loans that are in place against the policy.
Reasons People Sell Life Insurance
There are many reasons why a person would look to sell a term life policy or other insurance contract.
Quality of Life - Having the cash to live a better life now
Premiums too Expensive - Sometimes the premiums become too costly vs. the benefit of the policy itself. Getting the money up front could be a more attractive option for someone looking to sell
Policy no longer Needed - Life insurance like other issues may outlive it's primary usefulness vs. using money now
There are many different types of life contracts that can be used including Convertible Term, Universal Life, Whole Life, Endowment Plans, and more. If you are over the age of 55 have a policy with a face value of $250k or more, you can contact a company for a free analysis and quote on what your issue may be worth. Don't let a policy lapse since you have options to gain cash for it.
Money For Life Insurance to learn much more.
Nick Hunter is the President of American Investment Training. One of his company services is specializing in assisting insurance holders on how to Sell a Life Insurance Policy through the secondary market. His company works with major insurance companies throughout the world.