Do you currently need cash to cover expenses? If you are simply not making enough and are looking for a way to get the money you need, you may have thought about the possibility of selling your life insurance plan. Not only would selling give you an opportunity to get quick cash, but it would also be one less thing you would need to pay for each month. If you obtained a life insurance policy many years ago and continued to make payments on it regularly, you might be able to sell the policy for a lump sum of cash. There are a few different factors that contribute to your ability to sell your life insurance for cash or not, so you should be aware of those factors before you get started with the selling process.
The Size of Your Policy
If you have a small insurance policy of less than $50,000, you might not be able to sell it or get much for it. Most policy buyers are going to want to purchase a policy that is worth $50,000 or more. Some of the buyers who invest in insurance policies only want to purchase the ones that are worth at least $100,000. You are going to need to take the size of your policy into consideration when you are trying to sell the life insurance policy to someone else.
The Cost of the Monthly Payments
Once a buyer invests in your life insurance policy, they will need to continue making monthly payments to keep the policy in good standing. The investor purchases a policy, makes payments each month, and then receives all the money from the policy when you pass away. Because the investor is going to need to make those monthly payments for as long as you live, he or she will likely want to make sure the amount required is completely reasonable. If the monthly premium is too expensive, an investor may turn down the opportunity to buy the life insurance policy from you.
Selling a life insurance policy is something many people choose to do as they get older and need access to more cash. If you have found yourself in a difficult situation and you need money to cover certain expenses, selling your life insurance policy to an investor is a possibility but it all depends on the size of your policy and the cost of those monthly payments. It is best to start consulting with different investors to find out if they are willing to purchase your policy and take it off your hands.