Although there are a few exceptions for individuals with certain medical conditions, you typically cannot sell your life insurance policy if you are under the age of 65. Which begs the question, at what age can you sell your life insurance policy?
Life settlement companies will be more willing to purchase your policy if you are older than 65—ideal candidates are typically 75 or older. But what other requirements should you be aware of? And what benefits does selling your life insurance offer? We’ll answer these questions and more in the sections below.
Do You Have To Be Sick To Sell Your Life Insurance Policy?
In general, you must have experienced a sudden negative change in health in order to qualify for a life settlement. This is because a life settlement provider is more likely to purchase your policy if they believe they will gain access to your death benefit sooner rather than later. Aside from changes in your health and your age, other requirements to pursue a life settlement include:
- Life Expectancy | You must have a life expectancy of less than 15 years.
- Policy Age | Your policy must be at least two years old.
- Death Benefit Amount | The value of your death benefit must be $100,000 or more.
To determine if you qualify, try our free life settlement calculator.
Is Selling a Term Life Insurance Policy Worth It?
Regardless of the type of life insurance you have, there are many reasons to sell a life insurance policy. Here are just a few of the benefits a settlement can offer.
No More Premiums | You are not responsible for paying hefty premiums anymore, meaning your monthly income will increase. This is especially beneficial for individuals living on a fixed income.
Immediate Gratification | You will receive a one-time lump sum cash payout as soon as your policy is sold. You can use this money however you like.
You Can Keep Some of Your Death Benefit | You can negotiate to retain a set portion of your death benefit. If you have a policy with a death benefit of $150,000 or more, you can choose to sell a portion of it and retain some of your life insurance benefits.
You Will Receive a Large Payout | Life settlements are much more profitable than surrendering your policy back to the insurer or letting your policy lapse.
Life Settlements are Reliable | 401Ks and other retirement savings accounts go up and down, but the value of your life insurance policy is unaffected by market volatility and other external economic factors. This makes life settlements very secure and appealing to older individuals who need to boost their retirement income. You simply sell your policy, and reap the rewards.
Low-Risk, High-Yield Returns | If you do not want or need your life insurance, then you have nothing to lose by selling it to the highest bidder. Because life settlements are such a stable investment for buyers, you will likely have a decent payout regardless of what is currently going on in the economy. Additionally, the life settlement industry continues to grow, which means you will have no trouble finding a buyer for your policy.
How Do I Find Out How Much My Life Insurance Is Worth?
There are various life settlement value calculators online, but they are unlikely to give you a completely accurate number. To truly assess the value of your policy, you should meet with life settlement brokers, like Life Settlement Advisors. With our years of experience and extensive industry knowledge, we can answer all of your questions and ensure you get the best settlement value possible. If you qualify and are ready to pursue a life settlement, get in touch with us to learn more.
