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FAQs2022-12-05T11:30:56-05:00
Get an Estimate Value of Your Life Insurance Policy From MRE Finance2022-12-03T15:25:10-05:00

If you need money to cover medical bills, memory care, pay off debt, or just want some extra spending money, selling your life insurance policy for a life settlement or viatical settlement could be the best option for you. MRE Finance can help you on the journey to financial freedom.

MRE Finance can help you receive the best offer for your policy and guide you through the process with ease.

Want to find out the estimate value of your policy within minutes? Try our free estimate calculator!

Free Life Settlement Calculator

MRE Finance specialists are also available by phone and will answer your questions. 1-800-521-0770.

How Does Selling My Life Insurance Policy Save Me Money?2022-12-03T15:23:07-05:00

Selling a life insurance policy for cash, whether through a life settlement or a viatical settlement, can save you money.  You no longer have to pay insurance premiums, thus freeing up monthly funds. You can use the money received from the life settlement for other expenses; supplement your retirement, medical bills, memory care, long term care, pay of debt or anything you choose.

If you are still paying premiums for a life insurance policy that you no longer want or need, you can save money and gain cash for financial stability by selling the policy. The buyer continues to pay the premiums on the policy after receiving ownership.

Can You Cash Out a Life Insurance Policy Before Death?2022-12-03T15:21:51-05:00

The answer is maybe. Cashing out a life Insurance policy before your death will be determined by the type of life insurance policy you have. Cashing out a life insurance policy before death is possible, however, financial advisors agree that this is not the best option for those wanting or needing cash.

  • many term life insurance policies cannot be cashed out because it does not build up any cash value before death
  • some term policies have an option that enables the insured to convert the policy into a form of permanent life insurance. Some of these types of policies are called convertible term life insurance. You may find you have option to add an optional rider for an additional cost
  • whole, variable, universal life policies that accumulate cash value may allow the policyholder to access some of that money while they’re still alive through loans, withdrawals or surrendering
  • review your policy details to determine if cashing out is possible

When you take cash value from life insurance policy, you also reduce the death benefit that your beneficiaries will receive. The cash value is the portion of your premiums that the insurance company has set aside to grow over time. You can access this money through policy loans or by surrendering the policy.

It is recommended to review the pros and cons of cashing out a life policy. You should consider:-

  • the amount of funds you will receive by surrendering, cashing out, or a loan
  • potential taxes you may owe
  • are there any fees and penalties for cashing out?

Cashing out a life insurance policy is different than a life settlement or viatical settlement.

Consider selling your life insurance policy for a cash life settlement.

Am I Eligible for a Life or Viatical Settlement?2022-12-03T15:20:30-05:00

A life settlement is a single transaction, therefore, certain criteria must be met in order to be eligible for a life settlement or viatical settlement.

When you sell your life insurance policy, you will receive a one-time cash payment and you no longer pay the premiums.

The following factors determine the potential value for a life settlement.

  • your age
  • gender
  • state you live in
  • health condition
  • type of insurance policy (Universal, Whole, Convertible term, Variable etc.)
  • the policy pay out amount (death benefit)
  • how much are the premiums
  • your contact information

The Age of the Policyholder

Typically, those who are 70 years of age and older have a higher chance of finding a buyer willing to make an offer to purchase the life insurance policy for a life settlement.

Health Status and Life Expectancy

Your personal health status has an impact on life expectancy which affects the value of the life insurance policy. The longer the expected life span, the lower the policy’s value as the buyer continues to pay the premiums until they collect the death benefit.

The following 4 health categories are those to choose from that best describe your health.

  • Healthy: Active and exercise regularly
  • Minor Conditions: Medical conditions that require management such as diabetes or high blood pressure
  • Serious Conditions: Serious medical conditions such as cancer, Alzheimer’s, heart disease, stroke
  • Terminal Conditions: End-stage of life conditions such as late-stage cancer, congestive heart failure, liver, pulmonary disease
How Does Selling My Life Insurance Policy Work?2022-12-03T15:19:16-05:00

If you are over 70 years of age, you may qualify for a life settlement. A life settlement is a transaction in which you voluntarily sell your life insurance policy to a licensed third-party known as a life settlement provider or buyer. If you are terminally ill, you may choose to sell your policy and this is called a viatical settlement.

The buyer becomes the owner of the life insurance policy and is now responsible for the premiums going forward.

When you own a life insurance policy, you pay premiums for a significant number of years until your passing. In return, the insurance company agrees to issue a payment to the beneficiary or beneficiaries that you have listed on the policy in the event of your death.

Life and viatical settlements are for those that have unwanted or no longer need their life insurance policies.  The settlement allows you to access a cash value now by selling the life insurance policy. The funds you receive from the sale may be used for anything you choose.

Some common reasons to sell your life insurance policy are:

  • medical bills
  • memory care
  • long-term care
  • financially help family
  • pay off debt
  • no more premiums to pay
  • buy a vacation home
  • travel

MRE Finance will review your life insurance policy details and some basic information that you will need to provide. With this information they are able to provide you with a free estimate if you are eligible.

A convenient and easy way to find out the estimate value of your life policy is by using our “free life settlement calculator”.  The free estimate calculator allows you to determine if you’re eligible for a life or viatical settlement and its potential value. Click the button below to get started.

Free Life Settlement Calculator

How Much Could My Life Insurance Policy Be Worth?2022-12-03T15:15:49-05:00

When selling a life insurance policy for a life settlement or viatical settlement, the estimate value of the policy varies by several factors, such as age, policy type, face value etc. The average life settlement payout is 20% of the death benefit and can be higher based on the type of policy, age and medical conditions.

For example, a life settlement with a $500,000 death benefit could potentially be sold for $100,000. The amount you will receive from cashing out your policy is usually calculated as a percentage of the original policy’s value and, there are a number of other factors that affect the amount, including:

  • age
  • health status
  • type of policy
  • policy size (face value)
  • premium amount
  • life insurance issuer
  • state you live in

A viatical settlement are for those who are or chronically ill. (Chronically ill are those that are unable to perform at least two activities of daily living on their own).

A person is considered terminally ill when they have an illness or condition, that

The value of the policy for a viatical settlement is approximately 55% to 80%.

  • A viatical settlement are for those who are terminally ill or chronically ill.
  • Terminally ill means it is reasonably expected that the persons illness to result in death within two years. It indicates a disease that will progress until death with near absolute certainty, regardless of treatment.
  • Chronically ill are those that are unable to perform at least two activities of daily living on their own.
How Can MRE Finance Help You Today?2022-12-03T15:12:37-05:00

Now that you know that you can use the money from a life settlement for anything you choose, it’s time to decide if such an offer would be right for you. MRE Finance are experts in life settlements and help seniors everyday find suitable buyers so they can sell their life insurance policies for cash.

Click the button below for the FREE life settlement estimate calculator and find out what the value of your life insurance policy is.  You can also call MRE Finance at 1-800-521-0770 and have your questions answered.

Free Life Settlement Calculator

Is a Life Settlement for Me?2022-12-03T15:11:28-05:00

A life settlement may be the best decision for you and your family.  This option can help with your financial burdens by providing you with a one-time, lump-sum cash payout.

You are not required to use the funds from a life settlement for medical bills alone. You worked hard to pay premiums over the years and, you now find yourself in a financial situation where you need cash. Owning a life insurance policy that is no longer needed or wanted will allow you the opportunity to embrace financial freedom, help you and your family by selling your life policy.

Can I Help My Loved Ones By Selling a Life Insurance Policy?2022-12-03T15:10:39-05:00

Life settlements are often a good source of cash for helping your loved ones who may need assistance. By selling your life insurance policy, you can use the funds to help pay for you or your loved ones care. You can also help other family matters with childcare costs for grandchildren or helping your kids pay off their own debt.

If you or have a family member needs care and, does not have medical insurance, a life settlement can be a way to receive money to pay for the costs.

Selling your life insurance policy also allows you to use the proceeds to pay for special equipment that you, your spouse or loved ones may need…such as a wheelchair or lift.

Can I Pay Off Any Type of Debt with a Life Settlement Payout?2022-12-03T15:10:02-05:00

You might be surprised by just how much money you can receive from a life settlement. Selling your life insurance policy does not require you to only pay off debt.  You can use the funds received from a life settlement for anything your choose, including paying off debt; credit card bills, car payments, mortgages, student loans, or anything else that you need cash for.

Keep in mind that you may have to pay taxes on the life settlement funds you receive based on the state in which you live in.

To find out if you are eligible to sell your life insurance policy for a life settlement try our free life settlement estimate calculator. You can see estimate of what your policy could be worth within minutes.

Free Life Settlement Calculator

Are There Restrictions of What You Can Use the CASH for, From a Selling a Life Insurance Policy?2022-12-03T15:08:10-05:00

It is possible to use the cash from selling a life insurance policy for anything that you choose.  Many believe that a life settlement can only be used for medical expenses and this is not the case. It is common to use these funds for this purpose, however, the money is yours to do with as you see fit and, it can really help you when you are in a financial need.

There are many different things you can do with the life settlement proceeds. Depending on the amount you receive for your policy and, what your needs are, the money from a life settlement could change your life. The following are just a few examples of this:

  • Pay off medical bills, a life settlement could be a great way to get some cash quickly
  • Make a major purchase such as a new car, house, or even a new boat. That’s the great thing about life settlement offers; you can use the money for absolutely anything!
  • Donate to charities or causes you find important
  • Ensure financial security for your children and grandchildren
  • Help a loved one pay off college tuition.
Do You Have to Use the Cash From the Sale of My Life Insurance Policy Only for Medical Bills?2022-12-03T15:06:46-05:00

The simplest answer is no. You can use the proceeds from a life settlement anyway you choose. While it’s true that many people use their life settlement cash to pay off medical bills, you are never obligated to do so.

Here are some other financial reasons that many people use the funds for, by selling their life insurance policy:-

  • Long-term care
  • Memory care
  • Pay off debt
  • No longer want or need the life policy
  • Taking a dream vacation
  • Supporting family in times of need

If you have a life insurance policy with a high cash value and are in need cash, exploring the benefits of a life settlement might be the right option for you. Understanding what this process involves and, how it could help you is important before making any decisions regarding your policy.

Life settlements are a niche market in the financial world, and an important one for many people who find themselves in financial complications. A life settlement is a transaction where you sell your life insurance policy to a settlement provider/buyer.  The buyer takes over the policy, pays the premiums and, receives the death benefit.

Free Life Settlement Calculator

Do I Have to Use the Payment from the Sale of my Policy Only for Medical Bills?2021-09-24T08:07:08-04:00

The answer is no. Reward yourself! Visit the grandkids, take that once-in-a-lifetime vacation, help your family with college tuition, pay off your mortgage, buy that family vacation home you have always dreamed about. Selling your life insurance policy allows you to enjoy your journey to freedom.

How Much Can I Sell My Life Insurance Policy For?2021-05-12T22:29:12-04:00

A cash payout for a life insurance policy, on average can range from 10% to 25% of the face value of your policy. Depending on various factors, including your age, health status, and policy details the range could be higher or lower.

What is a Viatical Settlement?2021-09-24T08:06:00-04:00

A viatical settlement is a life settlement for those with a terminal or chronic disease. These typically are the highest valued policies – often 2 to 3 times more than a life settlement as the policyholder has a limited life expectancy. Viatical settlements are typically used by individuals who need to pay for medical expenses now, so they choose to forgo the full value of the benefit in the event of their passing and receive a payment now.

What is a Life Settlement?2021-05-06T13:30:39-04:00

A Life settlement refers to the legal transaction between the life insurance policyholder and a third-party buyer known as a Settlement Provider for an upfront payment. Life settlement cash payouts are typically higher than your policy’s cash surrender value but less than the total death benefit of the policy. Some of the reasons why people choose a life settlement include; unaffordable premiums, medical bills, supplementing retirement, emergencies, or if they no longer need the policy for their dependents or other personal reasons. A life settlement is usually a better alternative to lapsing or the surrender of a life insurance policy.

What is the Difference Between Life Settlement Policies and Viatical Settlement Policies?2021-09-24T07:43:16-04:00

Viatical settlements and life settlements are very similar. A viatical settlement a settlement where the insured on the policy is either terminally or chronically ill and a life settlement is when you sell your policy for other personal reasons. Typically, for a life settlement, you must be 70 years or older to qualify and the average age of people who sell policies is 75. Younger policy owners can also qualify, but they often suffer from serious health issues. Viatical settlements in many states require the policy owner to be terminally ill with a life expectancy of fewer than two years or chronically ill and unable to perform at least two “activities of daily living” such as bathing, eating, dressing, or going to the bathroom on their own.

What’s the Difference Between a “Lapsed” Policy and a “Surrendered” Policy?2021-09-24T07:43:01-04:00

Lapse. If you miss or discontinue paying the premiums, the policy coverage will lapse depending on the type of life insurance you have and the policy will no longer pay a death benefit for the insured person. Some studies claim that 80% of life insurance policies lapse in the U.S., which means the coverage runs out and is not available upon your death and therefore no payout is due to you. Surrender. A permanent policy may be surrendered for the accumulated cash surrender value of the policy. Premiums will be paid from the cash value, if any, until exhausted, at which time the policy coverage will terminate or lapse. By surrendering your policy, you’re agreeing to take the cash surrender value that the insurance company has assigned to your policy, and in return, forgoing the death benefit. Whole and universal policies accrue cash value, making them the most likely option for surrender.

Is the Life Settlement Payment Taxable?2021-05-06T13:27:58-04:00

We recommend discussing any potential tax liability with your tax professional.

What Are the Steps to Sell a Life Insurance Policy?2021-05-06T13:27:25-04:00

The buyer/provider will walk you through the process and with the information you provide they are able to determine if you qualify and then make an offer to purchase your life insurance policy.1. Health questionnaire. You’ll need to complete a health questionnaire.2. Authorization. The insured and the policy owner (if different from the insured) will need to provide authorization for the life settlement Provider to contact the insurance company on your behalf and access medical records.3. Insurance Policy Documents. You will need to provide a copy of the life insurance policy. If you don’t have copies available, the life settlement Provider can request these documents from the insurance company with your authorization.4. Evaluation. The life settlement Provider will evaluate all the details of the policy and medical records to help determine value.5. Offer. With all the necessary information, the life settlement provider may proceed with making you a cash offer for the policy.6. Closing. The closing process is the actual transfer of ownership of the policy to the Provider with all the accompanying documentation. During closing, your settlement payment will be placed in escrow until your insurance company has verified the change of ownership. Once verified, the escrow agent releases the funds and you receive your cash payout.

How Long Does It Take To Sell Your Policy?2021-06-07T19:34:06-04:00

Overall the process takes approximately 6-8 weeks for settlement to be finalized with an experienced Provider, but timelines can vary based on who your insurance company is and the Provider receiving the needed documents.

How Does Selling a Life Insurance Policy Work?2021-05-06T13:25:36-04:00

The policy owner transfers ownership of the policy to a licensed buyer known as a Settlement Provider in return for a cash payment greater than the surrender value but less than the total death benefit. The process is easy. You’ll submit an application with basic information about the policy and the insured person to be evaluated by the Provider.

Information you will need to provide is:

  • Your age
  • Health status
  • State you live in
  • Type of life insurance policy you have (whole life, convertible term, or universal life)
  • The cash surrender value (accumulated cash value) of the policy
  • Amount of premium you pay per year

Once qualified, the Provider will request additional information such as the life insurance policy documents and the medical records of the insured. The private information you provide is needed for the Provider to make a decision to purchase the policy.

MRE Finance respects your privacy and only works with licensed and reputable Providers. Selling your policy typically allows you to receive more money than if you surrender or terminate the policy with the insurance company for the cash value. If you stop paying the premiums and lapse the policy you typically will receive nothing. People often pursue a life settlement because they no longer need or can afford their life insurance policy and would rather have cash in their pocket. You can use the money received from a life settlement transaction however you’d like, including paying for long-term care needs, medical bills, or funding your retirement

What Does It Mean to Sell Your Life Insurance Policy?2021-05-06T13:22:27-04:00

Selling a life insurance policy, also known as a life settlement, involves selling the policy to a licensed buyer, known as a Settlement Provider. The Provider becomes the owner of the policy, pays the policyholder a lump sum cash payout, and pays the premiums going forward. The policyholder is no longer responsible for any policy expenses. Selling your policy typically allows you to receive more money than if you surrender or terminate the policy with the insurance company for the cash value. If you stop paying the premiums and lapse the policy you typically will receive nothing. People often pursue a life settlement because they no longer need or can afford their life insurance policy and would rather have cash in their pocket. You can use the money received from a life settlement transaction however you’d like, including paying for long-term care needs, medical bills, or funding your retirement.

Why Selling a Life Insurance Policy is a Good Idea?2021-05-06T13:21:21-04:00

Selling a life insurance policy may be a good option for seniors 70 years or older or for individuals who are chronically or terminally ill. It may also be an option if your life circumstances have changed, your premiums are no longer affordable or you no longer have dependents who will need financial support after your passing. With increased uncertainty about the economy, many seniors are looking into how to sell their life insurance policies. Selling your policy for a lump sum cash payment can help you pay for medical bills, vacations, paying off a mortgage, or supplementing retirement while providing you greater financial security and peace of mind.

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