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Sunday, November 17, 2019

Why Should I Sell My Life Insurance Policy?

Posted by admin on November 4, 2019

Does the idea of “how can I sell my life insurance policy“ keeps running in your mind? What is a life settlement? Who can sell? Are you eligible? Why you should sell your life insurance policy. You will find all the answers here below.

Selling your life insurance policy for cash is called life settlement. This involves the following:

1.Legal and financial transactions

2. Life Settlement Company (either a provider or a broker)

3. Legal documents

4. A commission if you go ahead with a broker.

You can think of the life settlement only if your age is above is 65 years, the face value of your policy is more than $100,000 and the policy type should fall amongst Universal Life, Whole Life, Term, Convertible Term, Joint, and Second-to-Die life insurance policies and must be issued by a US-based insurance carrier. If you meet all the above mentioned that you can go ahead a step further.

You can sell your term insurance policy only it is convertible into permanent life insurance. Since term life insurance terminates when the tenure for the policy lapses. The eligibility of life settlement depends on age/health, policy type, and policy size.

Under what conditions you can think to sell your life insurance policy?

1. You No Longer Have a Beneficiary Selling your life insurance policy (https://plsettlements.com ) while having dependents is not a good idea as you may dismiss the importance of the policy and why did you purchase it in the first place. In an incident like death of a spouse, divorce or you don’t have dependents for ones you need the cover; you might decide you sell it off.

2.You are over insured If you already have one or more policy in your name having high dollar policies and you wish to terminate one of them.

3. You cannot afford the policy premiums anymore
Sometimes the premium seems to be expensive depending on your income and you might decide to sell your policy. It is a great way to encase your policy and also avoids any further premium payments. In the given scenario you can consult a life settlement company they will guide you best.

4. Your term policy is about to expire
When a term life policy approaches the defined period you need to make some decisions that can benefit you. You need to act a minimum of six months before your policy expires. Also with the option of conversion rider, you can easily convert your term policy into permanent insurance and sell it.

5. The urgent need for cash
Life puts you in some awkward situations wherein you need cash urgently rather than the beneficiary. It might be the case where your beneficiary has more solid financial conditions than yours. You can then decide to sell your life insurance policy. Aging may bring unanticipated medical bills and long-term care expenses or maybe.

Unanticipated costs crop up as we age. You may need money for long-term care, medical bills, or to bolster your retirement income. Selling your life insurance policy should well planned and well-strategized move, it is not that easy to encash your policy. Many factors are involved during the process.

Before making your mind to sell your policy think of the following factors:-

Do I need the coverage? Finding an answer to this will make difference in your decision, though there are few cases under which you can still can the cover even after selling your policy, but you need to discuss the whole case with transparency with Life Settlement Company.

By what other ways I can pay premiums? When the premiums become difficult to pay in terms of affordability either you can reduce the death benefit or you can take loans against your policy. This way the premium amount reduces and you can pay them relatively with ease.

Through whom should I sell my policy? You can sell your policy to a licensed life settlement provider or a broker having years of experience and must be specialized in the insurance industry. Never make a deal with a broker or buyer who generates any kind of pressure to sell the policy for less. You will always get more amount than the surrender value.

You must know that you will get only 13 – 21 percent of the value of policies.

You will have to pay commission charges to the broker.
Buyers buy only specific types of the policy so in short not every policy can be sold.

Tax implications are involved, so talk to your tax advisor as this will affect your financial status.

How much money can you get?

The amount of money you will get depends on the size of the death benefit, the cost of the premiums, and the life expectancy of the insured. Life settlement providers use some calculative model so decide what they can pay for your life insurance policy that in-force and that will give them a decent ROI.

The best thing is to get multiple offers, either through a broker or several providers. You can find licensed life settlement providers (https://plsettlements.com/what-is-a-life-settlement/ ) and brokers in your area.

5 Tips on How to Lower Life Insurance Premiums

Posted by admin on December 16, 2012

Life insurance premiums can be very costly and unless you’re actively doing things to bring the price down, they are going to stay that way. Unfortunately, life insurance has a lot to do with your physical health and taking action and making changes to your health is not always easy. However, if you’re determined, it is possible. By following these 5 simple tips, you can lower your life insurance premiums considerably.

life-insurance

life-insurance

  • 1 – Lose weight and eat a healthy diet

While the food you eat might not matter so much to a life insurance company, your weight does. By losing weight, you can qualify for cheaper life insurance premiums. Maintaining a healthy weight is a great way to keep your insurance rates low and by eating the right foods, you will maintain those savings. It’s important to exercise regularly and by doing the things that doctors recommend, your insurance rates will drop and your finances will become more manageable as well.

  • 2 – Quit smoking or don’t pick up the habit

While you may feel like smoking is already phasing out, there are a lot of people that still smoke cigarettes. Cigarette smokers are considered high risk for health problems and that can raise your life insurance premiums. In fact, all types of tobacco products are bad for your health. Chew is just as alarming to a life insurance company as cigarettes are, so steer clear of anything that contains tobacco.

  • 3 – Lower your blood pressure

High blood pressure is a common medical problem and if your life insurance company knows about it, your premiums are going to stay high. Try exercising more and eating better foods. Living an active life and focusing on a healthy diet can do wonders for your blood pressure. Of course, if that doesn’t work, consult with your doctor and find out what types of medications are available. Your life insurance premiums will drop considerably if you can get your blood pressure under control.

life insurance

life insurance

  • 4 – Practice safe driving techniques

Do you have accidents or tickets on your driving record? Did you know that auto fatalities are one of the most common types of deaths? By practicing safe driving techniques, you will show the insurance companies that you aren’t an aggressive driver and you are safe behind the wheel. This is very important today because the population is growing and auto accidents are on the rise. More and more people are hit and killed in auto collisions every single year.

  • 5 – Ask about special deals and shop around

Comparison shopping is essential to getting low life insurance premiums. If you think your current company is charging you too much, why not look around for an alternative? There are dozens of life insurance companies out there and if you do some comparison shopping, you could save yourself a lot of money. Be sure to ask about special deals and promotions when you are contacting them about their services. Often times, insurance companies will have discounts available that are only discussed when you make an effort to ask.

Author Bio: Izzy Mackey works for an online car insurance quote company where they provide information about life insurance needs of construction workers and related insurance articles.