Life insurance is a common part of employee benefits packages, and you might choose to invest in it outside of that as well. But a life insurance policy can’t benefit you while you’re still alive. As the years go by, you might also find that it doesn’t have as much use to your beneficiaries as you’d hoped it would. Continuing to pay for a life insurance policy can be especially frustrating when it doesn’t seem to have enough potential benefits. That goes especially for those who are dealing with unexpected financial hardship such as credit card debt or medical bills and can’t afford the extra expense. These are some key tips to keep in mind if you want to know how to sell your existing policy and get yourself back on track.
Learn About the Process
Selling an existing policy isn’t always an easy task. In some cases, the policy might be set up to make selling it as difficult as possible. So, it’s important to learn how the process works so that you can take advantage of the potential benefits. Some of the things you’ll need to know include:
- The amount of coverage in your policy
- Your policy type
- The cash value of your account
It’s also important to note that different states have different regulations and laws regarding how life insurance policies can be sold. If you are interested in selling your life insurance policy, you can see how the process works by reviewing a guide. It talks you through every part of selling your policy using a life settlement.
Consider Independent Advisors
Sometimes you can work with an independent advisor regarding your life insurance policy. There are experts who specifically work on analyzing and appraising these policies. They can give you an independent sense of how much your policy is worth. Another benefit of using an independent advisor is that this person can tell you whether there are features that would make your policy more lucrative. This is ideal if you’re trying to get the maximum possible price out of your existing policy.
Work with a Good Broker
When you’re finding a broker to take care of the transaction, you can interview them. Don’t just ask for a policy quote. There are other questions as well, like how you can improve your pricing and how this will benefit you more than the policy itself. Here are some of the best questions to ask the potential broker you’re working with:
- Can you do anything to improve my offers?
- How do you structure your commissions? How much will you be pocketing from the sale?
- Can I negotiate with your commission price based on the value of my policy?
- Do you have a license to broker this type of transaction in my state?
- Can I get any discounts if I’m paying for my own medical expenses?
You should find out as much as you can about the costs of the transaction to ensure it’s worth it. Brokers might charge commissions ranging from 5 to 50 percent of your policy.
