How Do You Get the Cash Value of Your Life Insurance?

When times are tough, or when people need cash now, they make desperate decisions–like taking their baseball card collection to the pawn shop or canceling their whole life insurance policies. And when people are desperate for money, there are usually people waiting around the corner to take advantage of the situation.

Aspen Life Settlements provides a transparent and trustworthy method of buying your life insurance—while letting you keep the benefits.

Being able to access the cash value of your life insurance policy should make sense, though, right? It’s yours, after all. You’ve been paying into it for years or maybe even decades! The longer you’ve been paying into it, the better chance you have of being able to benefit from it.

The traditional options for accessing your cash value fund are limited. Before Aspen Life Settlements came around, your only options were to cancel or sell your whole life insurance policy. In both instances you would forfeit your death benefit.

Do You Get Money Back If You Cancel Your Insurance Policy?

Whatever your situation, there are typically two reasons for wanting to cancel your whole life insurance policy.

  1. You don’t want to (or cannot) pay the monthly premiums anymore.
  2. You want (or need) access to the cash value of your policy.

By canceling (or “surrendering”) your policy, a combination of things happen.

  • You no longer need to pay the monthly premiums. Yay!
  • Depending on how long you’ve held the policy, you may get full access to your cash value.

Nearly half of all whole life policies are canceled within the first 10 years—so insurance companies do what they can to incentivize keeping your policy alive.

If you haven’t held your policy for very long, there will likely be a (sometimes hefty) fee kept by your insurers from your cash value. And, no matter how long you’ve had the policy, there are fees and charges associated with canceling it.

  • Lastly, you forfeit the death benefit. Meaning that, when you die, the insurance company no longer has an obligation to provide a death benefit to your beneficiaries.

Should I Cancel My Whole Life Insurance Policy?

The industry answer to this question is usually something like “it depends.” It depends on how long you’ve had the policy, and your reasons for canceling.

A smaller demographic of people (generally older whole life insurance policy owners who are expected to live another 5-10 years) may be able to sell their insurance policies to a life settlement group. This type of company will pay cash value for the settlement and take over paying the monthly premiums—intending to make their money off of the death benefit.

But what about people who may not qualify for a life settlement? And is there really no way to keep your death benefit? It’s a pretty significant thing to forfeit, after all.

Well, that’s where Aspen Life Settlements comes in. We will purchase your policy from you, and also allow you to keep your death benefit. We typically pay you the same (and sometimes more) for your policy than if you just surrendered it to the insurance company. And remember, canceling your policy also means surrendering your death benefit—something you don’t have to do with Aspen Life.

Where other life settlement firms tend to only purchase policies from older clients, we’re interested in most whole life insurance policies (regardless of your age or medical condition).

We look to grow our money inside the cash values of your policy, which means that—again, unlike a traditional life settlement firm—we have ZERO investment in your passing. We don’t keep a penny of your death benefit. It goes entirely to your beneficiaries.

We think this is a no-brainer. You get the money you need—in as little as 1 to 2 weeks—AND you get to keep your death benefit.

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