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Life insurance is crucial for everyone who wants to provide financial independence to their family and dependents in the event of their unfortunate death. However, there may be times when you may not need a policy anymore because your financial status is good or your children are financially independent now. In such circumstances, you might think of canceling your plan. Nevertheless, canceling your policy won’t offer anything in return, so all the premiums you have paid will go down the drain.
This is where you should consider using a life settlement option, which helps you receive a payout even after canceling your policy. Want to learn more about it? Continue reading.
It refers to selling your existing life insurance policy to a third party for a cash value. The original policyholder receives the payment upon the sale, and the buyer will receive the payment after they pass away.
The right candidates for a life settlement are likely to pass away soon and have no dependents. Young and healthy people are mostly denied because buyers won’t be interested in buying policies for those who can still live for many years. If you are old or seriously ill, you will likely receive huge payouts, as it will quickly pay off the buyer.
Besides, it would help if you have the right life insurance policy with comprehensive coverage to remain attractive to the buyers. Also, buyers would often like to purchase policies from reputed insurance companies to ensure they receive the payout once the original policyholder passes away. You will be eligible to sell your policy if you meet all these criteria.
You can either hire brokers or life settlement companies to accelerate the sale. However, evaluate different companies and their price ranges to settle on the most affordable one.
The amount you will receive after the sale depends on your life insurance policy type and your buyer. Generally, your insurance company will not pay you the full payment as quoted, and the amount you receive may be smaller. Therefore, it is crucial to choose the right buyer and provider. Also, make sure you will receive a fair price upon the sale of your policy, especially if you will use the amount to pay off your medical debts, mortgage, or end-of-life care expenses.
At Fuller Insurance Agency, we offer life settlements to help you cash out your life insurance even after cancellation while ensuring peace of mind across your future. Contact our insurance professionals today to determine whether you are eligible for a life settlement or if you have any questions concerning it.
Fill out a form and a team member will reach out within one business day.
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