Sometimes you need some extra cash on hand. Fortunately, people with whole life insurance policies have a few more options available to them than they might realize. Depending on their situation, however, taking out a loan against their policy, or waiting until retirement age to supplement their income might not be the solution. In these kinds of situations, often the only option left is selling their policy.
Selling Your Life Insurance Policy for Cash
Unfortunately, the best way to “cash in” the value of your life insurance isn’t as easy as going to your insurer and asking for your money back. Your policy has two main components–the cash value and the death benefit. The cash value is an accumulated portion of your payments over time, plus interest and occasional dividends. Think of it as something like a savings account. The death benefit is what your insurer has promised to pay your beneficiaries upon your passing.
When you approach your insurer to cancel your policy, they often tack on fees and charges that take away from the amount you receive from your cash value, and they no longer have any obligation (or intention) of providing a death benefit to your beneficiaries. Depending on how long you’ve held the policy, there may or may not be much left for you to take home at all.
A small group of those people looking for a better option will be in luck. This group can find a traditional “life settlement” service, who will purchase their policy for a price somewhere less than the value of their death benefit. They sell their life insurance policy for cash, and the payment of their death benefit will go to the life settlement service upon their passing.
Who are the people that make up this eligible group? Generally people with older policies and shorter life expectancies.
What if you’re not in that group? Or what if you are, but want to be able to keep your death benefit? Well, you’re in the right place.
Selling Your Life Insurance Policy for Cash AND THEN Some
Where traditional life settlement services purchase entire policies, and profit from receiving the death benefits of those policies they bought, Aspen Life Settlements takes a different approach.
We purchase policies regardless of your age, medical condition, or life expectancy. We focus our efforts on investing our money in the cash value funds of the policies we purchase–which means we can allow our sellers to keep their death benefits! (Minus any last available cash values.)
So let’s review. You come to us with your whole life insurance policy. We typically pay you the same amount (and sometimes more) for your policy as you’d be able to get from simply canceling it. We take over paying your premiums so you no longer have to. AND, because you maintain your death benefit, your beneficiaries will still be able to receive it!
Cash Value of Whole Life Insurance Calculator
While it’s hard for us to give quotes or calculations without much info, we strongly encourage you to fill out the form below and see how much you can be paid for your policy–all while keeping your death benefit.