Insurance

5 Tips to Help You in the Life Insurance Settlement Process

5 Tips to Help You in the Life Insurance Settlement Process

Selling a life insurance policy might sound uncanny, but in certain times, it can provide you with huge financial support. Situations might come when you’ll need some quick extra cash to deal with a difficult moment, and in those moments, you can count on your life insurance policy. Life insurance settlement is the term to define the trading of life insurance policy.

However, moving around the life insurance settlement market might be tricky due to the interplay of several factors. Firstly, this market is still a buyer’s market. That means the cash payout that you will get today might be lower than what it was 3-4 years ago. In certain cases, the life insurance settlement price can drop down to 50%.

Secondly, the SEC (Securities and Exchange Commission) does not regulate different life insurance settlement options or procedures. Rather, it is regulated by states. For which you will find different rules and regulations in different states. It also does not follow any standard policy structure. So, you would not find any parameter to predict how much money you can get by selling your life insurance policy.

Thirdly, each life insurance settlement case is different and unique from each other. So, it’s hardly possible to know the correct amount for your policy.

However, that does not imply that selling a life insurance policy is bad. Rather, you need to be extra careful while selling your life insurance policy. To help you make the right decision regarding the selling of your policy, below we have shorted 5 useful tips.

1. Know the Procedure:

Before you decide to sell your policy, it’s highly important to know the life insurance settlement process well. When you’ll know how all these things work, you’ll realize what to expect and what not to.

2. Hire an Independent Advisor:

Search for an expert who knows the life insurance settlement process in-depth and let the person assess your policy’s value. Independent advisors are very helpful in these cases as they will tell you your policy’s true value and suggest you ways through which you can get the maximum cash payout.

3. Contact with a Trustworthy Broker:

Always talk to multiple brokers and ask them questions before choosing a trustworthy broker. Questions can be like – Do you have a license in your state? What can you do to ensure the highest cash payout for my policy?  How much commission do you take? etc.

4. Accept Multiple Offers:

The life insurance settlement market is highly negotiable. One offer proposed by a company may get doubled or tripled by another company.  So, be patient and look for the best bid.

5. Keep your Paperwork Neat and Clean:

You might lose a good potential buyer if your policy papers are faulty and not properly organized. Buyers will scrutinize your policy papers and medical records to correctly interpret the worth of your policy. Thus, to make your life insurance settlement process a cakewalk, keep your papers ready and organized.

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