How do i sell my whole life insurance policy?

Although buying a whole life insurance policy may have seemed like a good idea when you bought it, at some point you may arrive at a moment when you no longer want or need the policy. Should this happen to you, you have the option of selling your life insurance policy to a secondary market.

Value Your Policy

Determine the value of your life insurance policy. This can be done by checking your most recent policy statement from your insurance company. Simply look into the current death benefit value in the statement. This corresponds to the amount of money that the insurance policy would pay if you died at this moment. This is how much your policy is worth.

Selling Process

The process of selling a life insurance policy is referred to as viatication. Should you want to sell your life insurance policy, you may do so by directly selling it to a viatical investment company or through an agent or broker.

A viatical investment company will find investors who want to buy your life insurance policy. The company will pay you for the policy or connect you with an investor who will pay you for the policy, and when you die the company or investor will receive the insurance benefits.

On the other hand, a broker will take applications from those individuals who wish to sell their insurance policies. The broker will then present the necessary information to several viatical companies. Brokers will do their best to find the highest selling price for the life insurance policy. The more viatical companies involved, the better. When you work through a broker, typically they need to show your insurance policy to at least three companies. The broker will get quotes from these companies for an amount usually between the cash surrender value and the death benefit. You and your broker will take the best offer and transfer the policy into the viatical company or life settlement company's name. You'll need to fill out paperwork and pay a commission, which varies by broker and the amount you can sell the policy for.

How Much Will You Get

The amount you get for selling your policy will depend on how much time you are expected to live. The sooner the viatical company or group of investors will receive your life insurance benefits, the higher the value of your policy.

Source:

Aids.org: Selling Your Life Insurance

American Investment Training: Sell Whole Life Policy

FinancialWeb: Cashing in Your Life Insurance Policy