How Much Do You Get When You Sell Your Life Insurance Policy?

Nearing the end of your life is never easy. You may feel stress about your family relations, your legacy, your medical treatment, or have some lingering financial worries that are making this stage of your life even harder. If you are in the late stages of aging or are terminally ill, odds are that you may have considered a viatical settlement, or selling your life insurance policy, at some point. Doing so offers you quite a bit of wiggle room financially, and has the potential to make a dramatic difference in your life. So, if you are curious about the process of selling your life insurance policy, just keep reading.

What is a Viatical Settlement?

A viatical settlement is an arrangement wherein an individual can sell their life insurance policy if they deem it necessary and they consent. Typically these arrangements are carried out between an individual buyer or truster organization and the policyholder, and only when the policyholder is terminally ill or sure of their impending mortality.

Who is Eligible for a Viatical Settlement?

Usually, the people who are eligible to sell their life insurance policies are those who are terminally ill or in advanced age. You'll want to determine your eligibility on AmericanLifeFund, which provides quotes for eligible life insurance policies. Many policy purchasers will also take a look at the type of illness you have, the stage of the disease you are in, the maturation of your life insurance policy, and your life insurance policy's worth.

How Much Should I Expect to Make From Selling My Policy?

After you check on American Life Fund's website to see if your policy qualifies to be sold through a viatical settlement, you will probably be wondering how much you can make from selling your life insurance. You can expect to make less than the full value of your life insurance policy were it to mature and be passed on to a beneficiary, but you will make more than you would if you were to surrender the life insurance policy altogether. This amount will be paid out to you in a lump sum if you choose to go forward with a viatical settlement. Remember, this payment could be taxed as a capital gain.

Is Selling My Life Insurance Policy the Right Choice for Me?

Of course, before making the serious decision to sell your life insurance policy, you should verify that it is the right option for you. Typically, viatical settlements are a good idea for anyone who has an advanced stage terminal illness, is short on money, and wants to use that money for a specific life-enhancing purpose. Selling your life insurance policy is also the best fit option if there is no beneficiary to the policy or if the beneficiary is not dependent on the money. Always make sure you do your own research on viatical settlements to ensure you are working with an organization you trust and to verify that selling your life insurance policy is the best possible solution for you at the stage of life you are in.

What Are the Benefits of Selling My Life Insurance Policy?

The benefits of selling your life insurance policy could be plentiful and life-changing. The added cash from selling your policy could be the difference between you receiving more medical treatment or not, which could elongate your life so you can spend more time with friends and family. It could also mean that you do not slip on rent, your mortgage, utilities, or other bills so that you can keep living your life comfortably. Or, you may want to use the lump sum to take a trip with family or knock something out on your life experience bucket list.