Why would someone who is not terminally or chronically ill want to sell their life insurance policy?
The most common reason someone might sell their life insurance policy is due to the insurance policy lapsing or being surrendered because the insured can no longer pay the premiums. The surrender value is typically 3% to 7% of the face value of a universal life policy compared to the life settlement value of the policy, which can be considerably more. Other reasons someone may want to sell their life insurance policy are: · There is a need for new life insurance, annuities, or long term care · The insured has outlived the beneficiaries · There is no longer a need for the specific coverage · There is an estate planning need that has changed · There is a change in the health status of the insured · There is a retiring key-man or a company/ partnership selling · There is a liquidation of assets due to bankruptcy An insured’s reason to sell their policy varies greatly and this is just to name a few.
