If you are considering selling your life insurance policy, then there are a few things that you need to know. These things will help you to sell your policy under the best means to the best potential buyer. The consideration of these things will help to make it easier for you and your family.
Here is what to consider with a viatical settlement:
Most Only Bought From Terminally Ill: The first thing to understand these settlements is that the majority of them are only bought from the terminally ill. This means they will only be bought if you have a life expectancy of less than four years. You will be selling your rights as well as the obligations under the policy. Recently, life insurance policies can also be sold by the elderly under certain circumstances.
The Buyers: The place that you would go to sell is to a viatical company. This is a company that will pay you a lump sum of cash now in exchange making full value on the insurance policy when you die later.
Amount Paid: The amount paid is usually set between 45 to 85 percent of the value of the settlement. The amount paid will depend on a number of factors based on the individual. The longer someone has to live, the less they can expect to be paid. It will also depend on how much the company will need to pay in order to maintain the premiums for the life insurance policy.
Consider The Survivors: Sometimes a person will sell their policy because they want the survivors to get the money sooner. Other times, the individual wants to have a little fun. Sometimes they cannot afford to pay the premiums so it is better to sell. Whatever the reasons, it is important to consider the survivors, and how it will affect them.
Consider Other Funds: There are times that other options should be considered. Sometimes other funds can help an individual to do what they want instead of having to sell their life insurance policy.
Consider The Taxes: One of the great things about selling one of these life insurance policies when having a life expectancy of less than 24 months or less is that a person does not have to worry about a federal income tax. Those who have longer to live should consider the taxes.
Sometimes selling a life insurance policy might be the best option for you. This depends on your circumstances. Selling a policy rewards you with fast cash, but it is important to consider a few things to make sure it is what you want. Learn the process and make sure you get as much cash for your policy and at the fastest amount of time possible.