Selling Insurance Policy Can Give You The Money You Need Now

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Selling Insurance Policy Can Give You The Money
You Need Now
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• Selling insurance policy is becoming a popular
  option for people of or nearing retirement age,
  whose debts and other obligations have all been
  paid off. There are several reasons you might
  want to cash in on your life insurance policy.
  You may want to travel, start a business, or set
  it aside for medical care.
• For retired people who don't want further
  insurance life policy selling may be more
  profitable. But this is a relatively new trade,
  and the industry is not heavily regulated. It's
  important to know how settlements work, what to
  expect, and what to watch out for before selling.

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• How it works
• Most life insurance policies are sold to
  third-party investors. The buyer evaluates the
  policy according to its face value and the
  policyholder's health. Life settlements usually
  set a minimum face value for the policy, which
  may be anywhere from 100,000 to 250,000. People
  selling insurance policy also have to be over 65
  and in good health. Basically, your buyer needs
  assurance that you will live for the next 20 or
  so years. The longer you're likely to live, the
  more your buyer will get from the settlement.

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• After selling insurance policy, your investor
  becomes its beneficiary. They will pay all the
  future premiums and get all the death benefits
  when the holder dies. This also means that they
  take on the risks carried by your policy. Your
  provider might close down, or you may die before
  the projected date. To compensate, they will only
  pay pay a small part of your policy's face value.
  They may also check on you periodically by
  sending you postcards, which you have to send
  back to let them know you're still alive.
• Viatical sales
• Another type of insurance life policy selling is
  called a viatical. These sales are offered to
  policy holders who are terminally ill. Because
  there is assurance of the holder's time of death,
  viaticals are far less risky, and thus worth more
  than senior settlements. A viatical can pay you
  as much as 80 of your policy's face value,
  whereas a senior settlement can get you about
  20.

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• What to consider
• There are also some disadvantages to insurance
  life policy selling as far as the seller is
  concerned. When you need medical care after
  you've sold your policy, you may no longer be
  covered by your insurance company. That's why you
  need to make sure you're in top shape when you
  sell. Your beneficiaries might also lose their
  insurance benefits.
• Settlement fraud is also a major concern for
  people selling insurance policy.
• Scams are fairly common, as the industry is
  fairly new and not yet strictly regulated. One
  such practice is "wet paper," in which the
  investor convinces you to buy a policy only to
  sell it back to them later on. "Cleansheeting" is
  also a common scam where the company alters your
  medical record to make you qualify for a policy.
• Cashing in your Retirement Insurance Policy
  offers a lot of ways to make better use of your
  money. By selling insurance policy, you can get
  rid of monthly premiums, better support your
  dependents, and enjoy your hard-earned
  investments anytime you like.

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