One of the things that has become very popular in recent years is something known as a life settlement. This process is when you sell your life insurance policy in order to get the benefits of the policy before passing away. This has become popular because a lot of older adults don't have anything to worry about with dependents or any other issues, so they'll sell their plans and get the benefit early so that they can use it during their retirement.
So, people start off by wondering, can you sell your life insurance policy? Then, they ask, how old do you need to be in order to sell off your life insurance? Are there requirements that you have to meet in order to qualify for it? In this article, we hope to answer all of those questions for you and more.
First off, you need to find out who is eligible for a life settlement. One of the biggest questions to determine whether you are eligible is your age. If you have no health issues, you have to be at least 70 (male) or 75 (female) in order to be eligible. If you have health issues, those numbers go down a bit; males have to be at least 65, and females have to be at least 68. The reason for the difference is because, statistically, females do live longer than males, and these numbers reflect those important statistics. These numbers, on occasion, will vary; but for the most part, you will find that this is pretty much what companies stick to if they are in the business of buying life insurance policies from individuals.
That being said, you want to rethink your strategy if you are currently suffering from a serious or chronic illness. If the chances are that your life is going to end sooner than you expect it to, it may be in your best interest to keep your life insurance policy. That way, it's there to help your family and loved ones with any of the liabilities that you may have after your passing. Medical bills and other debts can really pile up, and you don't want to leave that with your loved ones - life insurance policies can help lift some of that load for them so that they can mourn instead of freaking out about money and how they are going to take care of the debt.
Almost every type of life insurance policy is eligible for a life settlement. There are some that people have more interest in than others (for example, convertible term life and universal life policies are a lot more appealing to the buyers than other types that are on the market today), but in general, you can usually find a company that can help you sell any life insurance policy that you currently carry - you may just have to wait a little bit of time.
Of course, the amount of your policy is going to matter as well. Even though you can sell policies that are around $100,000, your best luck will happen with policies that are worth at least $250,000. That way, the person who is buying the policy has the highest chance of getting the benefits that they are looking for at what they consider to be a good price. They are more comfortable with the bigger numbers because it's a lot better.
So yes, everyone's case is going to be different when it comes to qualifying for selling your life insurance. You will want to talk to your broker in order to get more information and you will want to talk to your family about whether or not this is the right path for you to take at this time in your life.