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Why Sell Your Life Insurance While You're in Poor Health?

Selling your life insurance policy to a 3rd party investor when you are in poor health might sound like an odd choice at first, but it might drastically improve the quality of life for people in their final years.  

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Everyone's situation is different, and one might think it's best to hold onto their life insurance policy when they know it's likely going to pay out in the next few years, but when you take a closer look, selling it now can actually be a great option.  

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Did You Know You Could Sell Your Existing Life Insurance Policy to an Investor for a Cash Settlement?

The life settlement market as been around for over 20 years, and is now a multi billion dollar industry made up of a wide range of capital sources that purchase existing life insurance contracts.  A life settlement is the sale of an existing policy to a 3rd party investor, and allows the policy owner to get out of their life insurance contract, avoiding all future premiums and receiving cash now. 

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Life Settlement Option is a broker solution that represents the seller in the life settlement marketplace.  We leverage our relationships with investor groups to create an auction and help you find the highest bidder for your policy.  If you're curious about how much your policy might be worth, fill out the Free Appraisal form and we'll be in touch shortly with feedback and to answer any of your questions.  

Why Sell Your Life Insurance Policy?

Getting back to our main topic, for someone who's been diagnosed with a serious form of cancer or other illness, their treatments and overall comfort level may prevent them from being able to work a high income job anymore.  The mortgage lender or landlord doesn't care if you're sick, they still need their monthly payments, and so do all the utility companies, service providers, insurance, food, gas, and everything else.  How does one afford all this when they can't perform work at a high level anymore? 

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Selling your policy provides you a living benefit with cash now instead of after death, and if you have a serious illness, it may provide you with a significant amount of cash to help pay all these bills.  It can also help you to afford alternative treatments and care that otherwise might not be accessible to you.  

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Not having to stress about money in your final years can dramatically improve them.

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If you suddenly had access to a significant amount of cash, Instead of stressing about work, you can use your remaining time to pursue your own interests and passions.  You could use that money to live out your final years the best you can.  Things like a memorable family vacation might suddenly be in reach.  

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Perhaps instead of leaving a death benefit, you could leave a valuable asset, such as a vacation property.  You and your family can enjoy the property now while in time the property value typically increases.  Your family could rent the property to generate income, and even sell it down the road for a value that might be equal to or greater than your original death benefit.  

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Most of our lives we stress about having enough money no matter what our financial situation is.  Having a significant amount of cash while we're still living can greatly improve our level of comfort.  

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At first glance, selling a life insurance policy when you only have a few years left seems like an odd decision, but when you realize that a settlement allows you the opportunity to improve your final years and even invest the money in a way where you can still enjoy it, suddenly it might sound crazy to hold onto the policy for the rest of your life.  

sell life insurance policy with cancer

To have a case reviewed, our broker can help you prepare your case for market.  Essentially, underwriters will review your medical records, and based on your age and ailments will come up with an approximate life expectancy.  One report could say 5 years, another says 4, and another says 6.  Based on this length of time they can predict how many premiums they're likely going to have to pay, and how long the investment will take to mature.  

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People with 5 years left often receive up to 50% of their death benefit, so a $1MM policy could easily become $500k cash today and you won't have to pay anymore premiums.  And those with only a couple years sometimes receive up to 70% of their death benefit, or $700k on a $1MM policy.  That is a significant amount of cash that can be used to help improve your quality of life, pay for treatments, and/or reinvest the money in a way that works better for you and your family.   

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Appraisals are free, and testing the market for offers is also free.  There is no obligation to accept an offer we receive, so why wait?  Get started by filling out the free appraisal request form, or call us at 213.784.1481.

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