The traditional view of life insurance is that we all need it. In the unexpected case that someone dies prematurely, life insurance helps protect loved ones from the financial burdens of funeral costs, mortgages, etc. Life insurance policies also prevent surviving family members from needing to work extra to support their loved ones.
There are many positives to having whole life insurance policies, cash value growth being one of them, but what happens when the cash is needed or preferred elsewhere? What if the premiums are no longer affordable?
Methods of Accessing Cash
Whole life insurance policies build reserves through excess premiums plus earnings. These deposits are held in a cash-accumulation account within the policy. These policies often offer the opportunity to access cash accumulations within the policy through policy loan withdrawals or surrendering all or part of the policy.
While these methods can have their advantages, they involve accessing part of the cash values and either paying interest on policy loans or giving up death benefits wanted for family needs. Furthermore, premiums will still need to be paid, requiring more negative cash flow. There’s another option: Sell the unwanted portions of the policy, getting all of the cash values, while the buyer pays for future premiums.
You continue to name the beneficiary for the entire death benefit, minus the last available cash values. This allows you to keep needed coverage for your family. These buyer’s needs are typically exactly the opposite of what you’d be accomplishing: they have the cash and want a conservative place to park it and aren’t interested in the coverage afforded your loved ones. You get what you need and they get theirs too! These buyers need special life settlement licenses and are strictly regulated in how they do business, which means you aren’t dealing with just any guy off the street.
Selling Your Life Insurance
Aspen Life Settlements here in the Treasure Valley allows you to sell your whole life insurance policy in exchange for cash, all while being able to retain needed coverage. You can learn all about how the policy works HERE.
While every person has their own needs and goals for their whole life insurance policies, if money gets tight or is preferred elsewhere, selling your whole life insurance policy can definitely be a source of needed cash and improved income.
Learn if selling your policy is the correct decision for you. Learn more HERE.