You
may be looking to sell your life insurance policy for a number of reasons. You
may be unable to afford the premium payments, your policy may expire soon,
and/or you may be in need of money for medical expenses or due to retirement.
If
you have a life insurance policy that you no longer want and you are looking to
get money, you may consider selling your policy to a life insurance settlement
company. Since this is not something the average person does frequently, you
may be unsure of what to look for when selecting a settlement company.
Read
on to learn a few of the important factors you will want to consider when
selecting a life insurance settlement company.
The
majority of states currently require life insurance settlement companies or
brokers to be licensed by the state they plan on buying and selling life
insurance policies in. If they are not licensed, they are not legally allowed
to purchase or sell life insurance policies. As such, it is important that you
verify that the life insurance settlement company you work with is licensed in
the state you reside.
In
addition to being licensed, you may want to look for a company that is a member
of the Life Insurance Settlement Association, or LISA. Those who are members of
this organization must take and pass a course on life insurance settlement
regulations, laws, and ethics. When you hire a company that is a member of this
organization, you have peace of mind that the company can legally and ethically
help you.
As
you look to hire a life insurance settlement company, take the time to ask the
company what they will do with your life insurance policy.
Life
insurance settlement companies do one of three things with your policy. They
may hold the policy themselves, they may bundle it up with other policies and
sell it to a group of investors, or they may flip it over to another individual
or company to hold on to. The more people view your policy, the more personal
information about you, including your age, health, and even financial
information, may be released to more people.
When
possible, it is recommended that you find a company that holds the life
insurance policy themselves to limit access to your personal information and
data.
The
final factor you need to consider when you select a life insurance settlement
company is how much money the company will offer you for your policy.
A
settlement company looks at many factors when offering you money for your life
insurance policy. Some of these factors include your age, the cost of your life
insurance premiums, the value of the life insurance policy (both currently and
when you pass away), and your overall health.
There
is not a specific formula to calculate what the settlement amount should be. So
one company may offer you one amount of money based on the various factors they
look at, while another company may offer you more or less. When you select a
life insurance company, get quotes from various companies to find out what they
are willing to offer you.
Are
you looking to sell your life insurance policy and obtain a cash settlement?
Habersham Funding, LLC can buy your policies in most states, with the exception
of Alaska, Florida, and West Virginia. Contact us
today to learn how we can help you and how much we would pay
for your current life insurance policy.
