Life insurance is often viewed as a financial safety net for those we leave behind when we pass. We are told it is highly important money that shouldn’t be touched except for very particular reasons. But, these days, that common view is changing. More and more individuals with a life insurance policy are choosing to sell their policy as they reach a certain age. There are a number of reasons they choose to do this. Perhaps their children are financially stable and won’t need the money anymore, they need the money for certain expenses or, as is becoming more common, they want to do one final grand thing before they die. In fact, this last option has become more appealing for retirees who have always dreamed of seeing more of the world but who never quite had the chance. Fortunately, the opportunity is easier than ever.
Selling Life Insurance: How Does It Work?
Yes, selling life insurance is possible, and it’s not a years-long headache. In fact, many individuals sell via a life settlement provider, broker or financial advisor. They take care of all the dirty work, including gathering medical records and making bids to potential buyers. Buyers are usually investors who are looking to make money once an individual dies, as the money that would have gone to an individual’s family is transferred to the buyer instead. As part of the deal, those with life insurance receive a lump sum of cash that they can spend how they’d like.
Can Anyone Sell Life Insurance?
There are requirements that need to be met before looking into selling your policy. First, you usually need to be at least 65 years of age or even 70 in some states. This is because buyers want to ensure they don’t have to wait for many years before receiving their funds. Alternatively, if you have a doctor’s note stating that you have a terminal illness, you will have an easier time selling your insurance as well. Second, your policy itself may have certain restrictions and stipulations to selling, which means you will have to do some preliminary research before taking any leaps. Fortunately, there’s plenty of online guides to see if you qualify, which can be found on investment or banking websites. Your insurance company most likely has a guide as well.
What Should You Spend Your Money On?
If you qualify and you receive a sizable amount of cash, you will have to decide how to spend your money. If you have no outstanding bills or debts, you should consider travel, one of the more popular options for individuals who sell. Travel is nearly always expensive (as long as you want to do so comfortably) and allows you to experience the world from an entirely new perspective. Moreover, you have the opportunity to see incredible sights, try delectable new cuisine, experience thrilling adventures and meet an endless amount of interesting people. You can choose to spend the cash exploring a large part of one country, or consider traveling to many countries.