As a matter of fact, it is possible to sell your life insurance policy for cash. The concept of selling your life insurance policy is known as a life settlement, this process involves selling your policy for an amount of cash that is less than your death benefit and more than the amount that is in your cash value account. The purchaser will take over the policy and the payment of the premiums till they find a better buyer who is suited for the policy. Keep reading this article to get answers to questions like, “Can I sell my life insurance policy for Cash?” and so on.

It is also advised that before you go ahead and come to a decision to sell your policy read the fine print and make sure that it is eligible for sale as not all policies are allowed to be sold.

Most people who sell their policies are senior citizens because they have retired or are about to retire, they come face to face with reality and the fact that medical and hospital bills are expensive. They may come to a point where their financial savings may not be what it used to and may need help.

When you sell your life insurance policy, you do so by hiring a purchaser through a life settlement company. Make sure that you go to a trusted life settlement company, like Harbor Life Settlement, and not some random agent around the corner. These companies are licensed and will help you with the selling process, and will see to it that you receive a good offer on your policy from a trusted buyer.

Can you sell your policy for cash?

Firstly, it is important to understand that not everyone who possesses a life insurance policy is eligible to sell it. When you sell your life insurance, there are certain criteria that have to be met by investors that want to purchase your policy from the life settlement company.

Who are eligible for a life settlement?

Most people who want to settle their life insurance are in the senior citizen category, and are 60+ years of age or are suffering some kind of illness and need the finances to fund their medical/hospital bills. Their life insurance policy will likely have a face value that is 100,000 dollars or more. A potential investor may want to pay the lump sum amount in exchange for a policy.

The premiums that are ongoing should be low enough that the purchaser can keep the policy until he can find a suitable buyer, which means that policy should be affordable to the settlement agency to buy it from you and to sell it to another buyer.

Why should you sell your policy?

Rising cost:

As you grow older your insurance gets more expensive and it gets harder to keep up with the expense, then the policy owner may have to take a look at their current financial situation and see where they stand and accordingly take the decision to sell their policy. Sometimes, even though insurance is created for the wellbeing and the future security of your growing family, once your kids have grown they may not need that financial security, because they may have grown financially independent. At times like these, you can sell your policy to fund your expenses.

Cost of healthcare and aging:

The rising cost of healthcare and financial crises has put many senior citizens in an uncomfortable position. A life insurance policy can be a safety net for a much needed financial relief for people who need to keep a track of their nest egg as they grow older.

Becoming self-insured:

As a policyholder you may have built up enough wealth, that you may have reached a point of self-insurance, this means that there is no longer a need for an insurance policy to be passed you’re your beneficiaries.

The points that are listed above are some of the reasons you need to consider selling your life insurance policy.


People, especially senior citizens, are increasingly gravitating towards selling their life insurance policy so that they can live out the rest of their golden years in financial peace, without having the constant stress about paying their medical expenses. You should sell your policy if the situation demands it and if you have the option. Always explore various settlement agencies and do a thorough research before settling on a company.


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