DON’T SURRENDER YOUR TERM (or Whole ) LIFE POLICY UNTIL YOU READ THIS!
Here are all the things you can do and should consider BEFORE you sell your Term or Whole Life insurance policy
Your Life Insurance policy was purchased as a vehicle to protect your family. If you have Term, you’re probably aware that the cost was a lot less than Whole or other permanent life plans. The issue with Term plans is that they eventually come to an end, and usually have no cash-value. So at the end, you’ve paid a lot into it and, if you haven’t died, get nothing back. With Whole Life, premiums are much higher and can be difficult to keep up later on. Not surprisingly, over 250,000 policies are surrendered yearly, either because policyholders no longer need them, they can’t afford to keep them or because no one ever told them of all their options. See below.
Pros and Cons of Life Settlements
These options have ramifications. Please weigh them carefully and discuss with your family and trusted advisor. *Some plans will allow you to maintain some or all of your beneficiaries. Contact us for more information.
No more premiums to pay, and you get a lump-sum payment which can be up to six figures. All this from a potentially worthless policy you were going to surrender. Cash paid directly to you for any use.
When you do a life settlement, you give up ownership of the policy. You also give up control of your beneficiaries, since the buyer becomes the new beneficiary, and not your family, when you die.