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Mar 24

How To Monetize Your Insurance Policy

If you’re in dire need of money for urgent reasons or for some other purpose you can sell your life insurance policy to Life Partners Corporate. You can choose from two options of monetizing your insurance policy through accelerated death benefits or life settlement. However, not everyone can monetize their insurance policy. But selling it can greatly benefit you being the policyholder especially if you’re in need of cash.

On Life Settlement

Instead of cancelling your life insurance policy, it might be wiser for you to choose life settlement instead. This is especially suitable if you are not qualified to receive death benefits sooner than the original plan. A good example is a case where a terminally ill individual needs money in which he or she can go through a viatical settlement or life settlement.

Life settlements involve the sale of an insurance policy to a third-party investor. The current policy holder sells the coverage to that investor at an average of 20-30% of its value. After the sale, the new policy owner then continues making premium payments until the original policy owner passes on. In the event of the demise of the original policy holder, the new policy owner receives the overall face value of the plan as long as he or she has paid the required premiums. This kind of settlement may also be used by employers that provide life insurance coverage for their workers so the former can recoup their investments when an employee leaves the company for reasons such as new employment or retirement.

Accelerated Death Benefits

If you realize that you don’t need your insurance policy anymore, don’t cancel your insurance coverage. When you cancel, the premiums you paid wouldn’t be refunded. You will do well converting that insurance into money through accelerated death benefits plus you get to keep the money that usually pay your premium.

To find out if you are qualified to take the accelerated death benefits, read through the terms of your insurance policy contract. If you are eligible to get these benefits, you can already enjoy a part of your benefits while you are still living. In addition, you will also be free from paying the remaining premiums plus you will receive the extra money. Generally, you might be able to cash in about 50 to 80% of the insurance policy’s face value.

Making money off your life insurance policy is possible. You can do this by either taking death benefits while you are still alive, or obtain life settlements from Life Partners Corporate – just a couple of ways to monetize your life insurance policy.

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