Unlock A Hidden Asset

By |2020-07-14T21:33:17+00:00July 14th, 2020|Insurance|

Did you know that you can sell all or a portion of your life insurance policy, even term insurance?

If you are 65 or older and experienced a change in health or the need for your life insurance has gone away, your policy may be a valuable asset.  It can be sold in the same way that you might sell your home, car, or other valuable assets.  In the past, the only option available for the policyholder was to surrender it to the insurance company for the cash surrender value or to let the policy lapse.  A life settlement provides the policyholder another option if you decide you no longer want or need the policy.

You have the option to sell a portion or all of your unwanted, unneeded, unaffordable life insurance policy for a more significant amount. The value when selling the life insurance policy may be much larger than you would receive should you simply surrender it.

Why you may decide to sell your policy.

  • You need funds to pay for medical expenses, long term care, or to supplement your retirement income.

Mr. Johnson, a 74-year old male, had a 20-year $500,000 Term Life Policy that was about to expire.  He was going to let it lapse until he discovered he could sell his policy.   His policy was converted to permanent universal life policy and sold for $75,000, which was used to purchase long-term care insurance coverage.

  • You wish to reduce the amount of insurance you own.
  • Your needs and circumstances have changed. e., Your children are grown, you have increased expenses, etc.

Mr. Brown, a 76-year-old male, was able to maintain a portion of the death benefit of his life insurance policy while eliminating costly premium payments.  He owned a $350,000 universal life insurance policy.  The policy was purchased for the kid’s college fund and to pay off the mortgage on his house in case he died unexpectedly.   Today the kids have graduated from college, and the mortgage has been paid.  He no longer needed the $350,000 in death benefit.  Mrs. Brown wanted to keep some insurance on Mr. Brown.  They sold $300,000 of his $350,000 dollar policy.  Retaining $50,000 for his wife and receiving $45,000 in cash as well.

  • You have too much life insurance; however, you want to retain a portion of your policy.

Mrs. Perkins, a 75-year old widow, had a $750,000 universal life policy.  Because of recent changes, she no longer needed the policy.  She wanted to help fund her three grandchildren’s college tuition.  She discovered that she could sell her life insurance policy.  She sold her policy for $150,000.

  • Your premiums have increased, and the policy has become too expensive to maintain.
  • If your 20-year term is about to expire, and you can no longer afford the premiums to convert to permanent insurance.

Unlock that hidden asset!

 

About the Author:

Joe Marullo
Joe Marullo Insurance & Retirement Services provides services and products which help mature individuals and families keep their savings up with inflation, protect their estate from losses to income taxes, and turn their estate into a guaranteed lifetime income. Website: joemarullo.retirevillage.com

Office: (281) 668-9160 | Joe Marullo Insurance & Retirement Services