Whether you have a term life insurance policy or a whole life policy, a life settlement company can help you arrange the sale process.
The process is quite easy and straightforward. But before you start the life insurance buyout process, be sure to give yourself plenty of time to understand everting and make things easier.
The first step is to find a licensed life settlement provider, then you can send your life insurance policy to the provider. The provider will evaluate the policy, to see whether this is economical or not.
Once the policy is considered to be economical, the provider will inquire about your health condition. Then the provider will put everything together and give an offer after their evaluation. Now it’s up to you to decide whether to accept the offer or reject it.
When the life insurance settlement company takes over the policy, it is the settlement company who pays premiums and receives a future death benefit from the policy.
Generally, higher benefits, lower premiums and worse health conditions will result in a better offer. It may sound cruel, but the sooner the policyholder passes away, the better for the settlement company. Because they can pay less premiums and get the benefits sooner.
Every case is different. On average, the settlement offer can be about 20% of the death benefit.
This is a hard decision. Whether it’s you or your family decide to sell the life insurance policy, try to search and learn more about life insurance buyout.