One of the benefits of holding whole life insurance is being able to contribute to a cash value as you pay your premiums. Slowly but surely, the amount adds up, collects conservative interest, and grows from occasional dividends.
So, the money is there, but how do you take out the cash value from life insurance?
There are a few different answers. You can take out a loan from the policy, cancel it, “surrender” a portion of it, or sell it.
Should I Take A Loan Out from my Policy?
One option for accessing the cash value in your life insurance is to take out a loan from your insurer.
Technically, the money you receive as the loan doesn’t come out of your cash value, but your cash value backs it.
This means that, should you fail to pay back the loan, your insurer can take the amount of the loan (plus interest) out of your cash value to cover their losses.
It’s a pretty safe bet for them. Either you pay them back or they’ll take what you owe them out of your cash-value account—no need for them to track you down or repossess anything.
Should I Terminate My Whole Life Insurance?
Can I Sell My Life Insurance Policy?
If you’re looking to go the traditional life settlement route, unless you fit a specific set of circumstances, the answer is likely no.
And if you do qualify, the life settlement group is essentially purchasing from you the rights to your death benefit. So you might get ahold of the cash you need, but again, at the cost of losing your death benefit.
However, if you’re looking to sell your policy with Aspen Life Settlements, the answer is likely yes.
We are looking to purchase a wide range of policies, regardless of your age or health condition. And the best part? You get to keep your death benefit-at little to no cost to you.
We typically pay you the same amount you would get from your insurer if you canceled the policy, and sometimes even more.
Get in touch today to find out how much your policy could be worth!