A lot of people don’t know that it is not only when you die that you can get the money from a life insurance policy. There is an alternative that allows you to use the value of the life insurance policy and get cash from it. It is possible to get rid of a life insurance policy that you no longer wish to hold and sell it off to another interested person.
Not Everyone Is Eligible
Selling to a third party is certainly better than giving it back to the insurance company. However, each and every person may not be eligible to be a participant in a life insurance settlement. It is most necessary that the other person should be above sixty years of age and should have an anticipated life expectancy of more than two years, and preferably around twenty more years. Also, the life insurance policy should be of at least a hundred thousand dollars in worth before it can be sold off in a life insurance settlement.
Taking part in a life insurance settlement often requires availing of the services of a financial advisor, and in this regard, you can turn to a number of different concerned people. These people are sure to be able to advise you through the life insurance settlement process, and they include attorneys, accountants as well as financial planners.
Anybody thinking of going through a life insurance settlement will need to decide who the life settlement provider will be, and in this regard, some turn to brokers to help them find a decent provider. Such help may be forthcoming, but it will cost you a little extra. Other than that, the life insurance settlement is not complicated, though certain steps need to be followed.
The life insurance settlement process will, of course, begin with the advisor and making of the decision to sell the policy. This will then be followed by getting a cash value placed on the policy and may require submitting medical information as well as undergoing a physical examination. Once everything is in order, you should start to receive offers from the provider and you can then select the best one.
Once decided, you must then fill some forms and the provider will subsequently place a cash payment in escrow, and the forms will be submitted to the insurance company asking for the policy to be placed in the buyer’s name. Once this has been done, the money is released to you, and you can collect on the payment. This is all there is to the life insurance settlement procedure.
