Have you ever wondered if it’s possible to sell your life insurance, and if so, to whom?
If you are 65 or older, you can sell your life insurance policy, granted its face value is more than $100,000.
Often, the types of policies you can sell are universal, whole-life, and convertible-term policies. But note that there are many other types you can sell, too, so be sure to contact a representative from a reliable life settlement buyer to know for sure.
And speaking of buyers, let us look at the three possible buyers you might want to consider when thinking about selling a life insurance policy, then you can click to find out more.
Institutional Investors
As the name suggests, these are large institutions that specialize in buying insurance policies from eligible policyholders. A hedge fund, an asset management company, and any other financial institution that deals in purchasing such policies can be termed an institutional investor.
Institutional investors purchase policies as investments and manage a portfolio of the same in pursuit of returns down the line. These firms typically have the necessary experience evaluating life policy values and can table very competitive rates for your life insurance policy.
Life Settlement Brokers
A life settlement broker or provider is a company that facilitates the life settlement process by acting as an intermediary between you, the policyholder, and the potential buyer. Given that, a life settlement broker can be the in-between when you are looking to sell your life insurance policy to an institutional investor.
These brokers are quite helpful in assessing your policy, negotiating offers, handling paperwork, and taking care of the transactions’ legal matters. If the company has been in business for a long time, you can count on them to match you with the ideal buyers in the market. So, you might want to watch out for that. And reputation, too, of course.
Individual Investors
Sometimes, individual investors might purchase life insurance policies directly from policyholders like yourself. These parties often consider life insurance policies as a unique investment vehicle and can offer you very competitive rates for yours. The downside? Finding an individual investor can be tougher than finding an institutional investor or life settlement provider. Besides, they can be quite challenging to work with compared to the latter two.
For the best experience, be sure to research extensively before settling on a specific individual investor. You can seek feedback from other clients, check reviews online, or take a trip down to them armed with concerns you want to be addressed. Ultimately, you want the reasonable life settlement that you deserve.
Thinking of Selling Life Insurance Policy? Find the Right Buyer for Your Needs
If you are thinking of selling your life insurance policy and it is eligible for a life settlement, you need to find the right buyer. This way, you can guarantee yourself very competitive rates while offloading the burden of paying future premiums on a no longer feasible policy.
Depending on your needs, you can opt to work with a life settlement provider, an individual investor, or the more preferred option, an institutional investor.
