Life & Health Insurance/Universal life ins.

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Question
My questions:

•I am eight-one years old and have a Universal Life insurance policy of $100,000.00 with a monthly premium of $295.00 which I no longer can afford. I have an offer to sell it to a life insurance settlement company. What is your advice?

•With this scant bit of information what might I expect to sell it for?

•I understand life insurance is treated as property which I own. Can I sell to whoever I choose?

Thank you
Don

Answer
Let me offer an alternative before I answer your question.

First off, consider lowering the death benefit to a level that satisfies your budget. This should be considered if beneficiaries are not yet deceased. You can contact your life insurance carrier and ask that an offer to reduce the death benefit be presented. If the offer is not to your liking, you are under no obligation to accept.

In response to your question, this would be a last case scenario. You must keep in mind that after selling this policy, you will be unable to secure a life insurance policy. However, if you decide to sell, you have to remember that companies that purchase existing life insurance policies are doing this as an investment and are ONLY interested in profit. Therefore, you likely would sell it for less than the amount you have put in via premium payments. It is up to you whom you sell the policy to, but copious amounts of paperwork will be required to have a contract that benefits both parties. I do not recommend selling a policy unless all beneficiaries are deceased. At that point, the life insurance has no relevance. I would recommend taking out the cash value of the policy, which should be equal to or more than your premiums. Then, you would just be selling the death benefit, and your loss will be much much less.

Hope this helps!

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John Claborn

Expertise

Any question on individual or employee-sponsored health insurance, Term life insurance, or Medicare questions. I cannot answer any question involving investment funded life insurance or any government-sponsored entitlement question that does not involve a private insurance company.

Experience

Our agency has over 35 years of combined experience. I, personally have been in the insurance business for 6 years. I have dealt with every type of client out there, young and old.

Organizations
Texas Association of Health Underwriters Lubbock Association of Health Underwriters - Media/Communications Chair Young Professionals of Greater Lubbock Premier Networkers of Greater Lubbock (President)

Education/Credentials
Bachelor of Arts in Economics from Texas Tech University. Associates of Arts in Business Administration from Frank Phillips College.

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