Can I Sell My Life Insurance for Cash?

Financial assets are designed to appreciate and gain value. Because a life insurance policy can build cash value or be converted into cash, it is also considered a financial asset when calculating one’s net worth. When utilized wisely, a life insurance policy is an extremely valuable, and often overlooked, financial asset. A recent study shows that 90% of seniors would have considered selling their life insurance policy had they known the option existed.

Common Misconceptions Regarding Life Insurance

There are some common misconceptions regarding the life settlement industry because of its overall lack of awareness to the public. Many individuals believe that only terminally ill insureds qualify for a life settlement. However, there are settlement options for insureds age 70 or above that own policies of $100,000 or more in death benefit. Following that, it is also a common misconception that there is no real added value in choosing a life settlement instead of surrendering their policy back to the insurance company. Abacus Life Settlements, a direct buyer of life insurance, offers approximately 6 times greater the cash surrender value for life insurance policies. A life settlement will always offer more than the cash surrender value but less than the death benefit, providing an immediate lump-sum of cash to insureds for their policies.

Selling your Life Insurance Policy

Selling your life insurance policy to a trusted buyer provides you a large cash payout that can be utilized in any manner. This list showcases the top Life Settlement companies of 2022. Each offer that is generated is based on the insured’s life expectancy, age, health, premium schedule and payments, policy type, length of ownership, and policy size.

3 Types of Settlement Options

There are 3 settlement options to consider when deciding the most suitable option for each case:

• A traditional option allows you to sell your entire life insurance policy for a cash amount above the policy’s surrender value. You have no further obligations or claims to the policy, with all future premiums paid by the buyer.
• The retained benefit option means you would no longer pay any premiums and retain a portion of your benefit. When the policy ends, beneficiaries will receive a guaranteed percentage, but you have no further obligations or payments to make.
• The hybrid option is a combination of two, where you would sell a portion of your life insurance policy. With this option, you receive a cash payment now, your beneficiary gets a guaranteed percentage of the benefit when the policy ends, and you have no further obligation to pay future premiums.

Policy Value Calculator

Abacus Life Settlements offers a free and instant policy value calculator that can help initiate the life settlement conversation by providing some initial insight right at your fingertips. Abacus Life has been a leading buyer of life insurance policies in the U.S. for over 18 years, with over $2.9 billion in policy face value purchased. They take pride in helping thousands of senior clients maximize the value of their life insurance and would love to help you get started on a life settlement.