If you are a senior looking for a way to find some extra cash, you’ll want to learn about selling term life insurance policies. As a senior that has been long-retired, managing money becomes difficult. That’s mostly because most seniors have a finite amount of income to work with by the time they retire.
How term life insurance works
If you purchased a term life insurance policy, odds are you were not expecting to need it for very long. Most people take out a term life insurance policy to ensure that loved ones will be well taken care of after the policyholder’s death. As such, most people only apply for term life insurance if they have reason to believe that they will expire within the duration of coverage.
A term life insurance policy only provides coverage for a specific amount of time, hence the name “term life insurance”. If the policyholder expires within the timeframe of the term specified in the policy, the death benefit will be paid to the beneficiary. However, if the policyholder passes away outside of the timeframe stated in the policy, the death benefit will be not be paid. Once the term is up, the policyholder has the option to either let it lapse, apply for another term or if your policy allows, convert to another type of policy.
Applying for another term has some serious disadvantages. The biggest disadvantage is that the rates can increase significantly with age. Like most insurance products, term life insurance is designed for specific situations.
What to do when your term life insurance policy expires?
Once your term is about to expire in a couple of months. You will have a big decision to make. Do you renew or convert the policy after the term expires and risk paying higher premiums? Or do you let it lapse and leave it be? The 1st option will cost you money. The 2nd option won’t cost you anything but there is no longer a death benefit pay out. There is, however, a 3rd option in which you can make money!
What is the 3rd option you ask? To sell your term life insurance policy to a life settlement provider for cash. If you have paying your premiums and based on age and health, this might be just for you.
Selling a term life insurance policy
If like thousands of other seniors, you have decided that you would like to sell your term life insurance policy to eliminate expensive premiums, or you need to pay off bills, you’re making a smart decision. By choosing to sell your term life insurance policy, you will successfully avert paying any more premiums while simultaneously putting a large sum of money where it belongs, in your pocket!
You can sell almost any term life insurance policy for cash. However, certain factors can affect the value of your policy such as your age, health status, the amount of the term left on your policy or your policy’s conversion privileges.
If your term life insurance policy has a conversion rider, you stand to make a significantly larger amount of money than selling a policy without one. That’s not to say that you can’t make any money by selling a term life insurance policy that doesn’t have a conversion rider. A life settlement provider will guide you through this process and help to provide you with an estimate. You can also visit mrefinance.com/free-life-settlement-calculator for a free estimate of what your policy could be worth in a few minutes.
What is a conversion rider?
So, what is a conversion rider and why does it affect the value of your policy? A conversion rider refers to a provision that allows you to convert your term policy to a permanent or universal life insurance policy. This makes the policy much more valuable because permanent life insurance policies are worth much more than term policies.
Keep in mind, however, there is usually a clause that dictates a future date until you can convert the policy. Most of these provisions allow you to convert the policy sometime before the term expires. There is an age limit of 65-70 years.
Should you sell your term life insurance policy?
Now that you know more about the process of selling a term life insurance policy, you are probably wondering whether it would be a good idea to do so or not. For most seniors, the answer is yes!
Since there are very few drawbacks to selling a term life insurance policy, there’s practically no reason not to sell it! That said, whether you should sell your term life insurance policy or not comes down to your goals and circumstances.
For example, if you are retired and you want to move overseas, buy a vacation house or just need to pay off bills, selling your term life insurance policy can help you find financial freedom. Likewise, if you are strapped for cash and out of ideas, you can use the money from the sale of your insurance policy to get yourself back on your feet.
Selling your term life insurance policy just might be one of the smartest decisions in your life! Just think about what you can do with that kind of money! You could go anywhere and do anything. If you are living in a nursing home or memory care assisted living facility, you will have the security and peace of mind that comes from knowing that you don’t have to worry about how to pay for it.
Ready to sell? MRE Finance is here to help
If you are ready to sell your term life insurance policy, you’ll want to pick up the phone and give the specialists at MRE Finance a call. Our team is standing by to help answer any questions you may have and guide you through the process of selling your term life insurance policy. MRE Finance also has a free life settlement calculator that you can use to find out what your policy could be worth. Click here to get started mrefinance.com/free-life-settlement-calculator.
Go ahead and give us a call at 1-800-521-0770 or visit the free life settlement calculator. The team at MRE Finance is available to provide you with an estimate for free!