Sell Your Term Life Insurance Policy

selling my term life insurance policy

Since term life insurance does not have a cash value that can be surrendered many policy owners simply let their policies lapse when the coverage becomes too expensive, or it is no longer needed. Selling your term policy in a life settlement transaction can unlock value that would otherwise disappear by letting your policy lapse without learning the market value you might be leaving behind.

Most buyers of life insurance in the secondary market only purchase permanent insurance policies such as universal life. However, in many instances owners of term life insurance are still able to sell their policies for a cash settlement or other exchange option. Many term products have a conversion feature where the owner can convert their policy into a permanent product such as universal or whole life.

A significant portion of policies purchased by life settlement investors are term conversions where a newly converted policy becomes the basis for the market value of a transaction. Unfortunately, not all term policies are convertible or have a limited amount of time to exercise a conversion option. In those cases where the term life insurance policy is beyond the level term period and enters an annual renewal mode at increased rates, there still may be value to be had in exploring a sale of the policy. If the renewal rates are low enough and coupled with the health evaluation, a value can still be generated to effect a policy sale.

Since the cash surrender value of term life insurance does not exist, by product design, you can instead sell your term life insurance policy and work with a purchaser to access the hidden value in your life insurance.

Get Your Free Quote and Sell Your Term Life Insurance Policy

What is a Retained Benefit Life Settlement?

Senior Couple Retained Benefit

You likely purchased a life insurance policy to protect or benefit family members. Now you may be facing increasing premiums while at the same time having to manage your retirement.

All too often many seniors lapse or surrender their life insurance as their needs or financial situation changes. Many do not even know all their options after sinking years of premium payments into their policies.

For seniors who may want or need to keep their coverage, there is the Retained Benefit Settlement option that can maximize the current fair value of their policies and provide a lasting benefit.

A Retained Benefit allows the policy owner to keep a lower, but still desired, level of coverage inforce without any future premium payments.

Here is how it works.

After evaluating your policy, we arrive at the secondary market value which is presented as either a cash amount or a retained benefit. The difference between the two is the time value of money.

Instead of discounting the value all the way back to today with a cash settlement, we can offer an amount to be paid in the future that is typically three (3) times larger or more.

For example

A one million dollar policy has a present value of $200,000; this is the cash settlement. In this case, the retained benefit would be $600,000 in coverage maintained. The purchaser will continue to make all the premium payments for the full one million dollar policy eliminating the seller’s premium and providing a lasting benefit.

One of the best parts is, the retained benefit is paid directly to your chosen beneficiaries by the insurance company. The policy seller names one or more irrevocable beneficiaries which are recorded at the carrier level, ensuring the timely payment and protection of the retained coverage.

Get Your Free Quote for your Retained Benefit