Sell A Life Policy - Selling Life Insurance

Selling An Endowment Policy Plan

2011-11-26T14:02:00.000-08:00

There is a growing market for people looking to sell their endowment life insurance policy for cash. Endowment plans may be eligible like other types of life insurance policies. If the contract is in good standing and the person selling meets basic age requirements, an endowment plan can be used for a transfer to another buyer.

We can provide a professional with a quote on your life insurance. These can apply to Selling Whole Life, Convertible Term or other plans.

Reasons To Transfer or Sell a Plan

There are many reasons why an insured no longer wants their endowment policy. High premuims may be overtaking the benefit they are getting on the whole life or a person just cannot offord them anymore. Having a real market where an investor will pay cash to take over the policy has helped thousands of people. We have helped people sell and transfer their life insurance for cash.

Quality of life is a factor for those looking to transfer a plan and other policies. As people grow older, they may wish to enjoy their later years and some have insurance policies that are worth money to other investors.

Past settlements and case studies can provide opportunities to sell their insurance for $100,000, $300,000 or much more. The higher the face value, the higher the possible settlement.

Sell Policy Quote

Click here to get a free auto, health, home or life insurance quote.

Term Insurance Transfer

2011-09-30T13:13:00.000-07:00

Learn how to sell a term life, whole or other type of life insurance for cash. There are quotes that can be given to policy holders who no longer want to keep their term life or other policy in effect.

Selling or transferring a life insurance policy for a cash settlement is a growing market designed to provide a solution for many life policyholders. Viatical or life option transfers are available to people who qualify. There are many reasons why someone may want to sell an insurance policy, get a quote or transfer it for a cash settlement.

Sell Life Policy Quote

Cash for Insurance Policy

2011-09-19T07:56:00.000-07:00

We have a network of Insurance buyers of policies that can potentially buy your life policy for a money settlement.

There is a growing and active market for people looking to sell their life insurance policy for a cash settlement. Some have heard of these markets with terms such as life option settlement or viaticals. This market fills a need for people who no longer need their life insurance policy, no longer can afford it or who just want the cash to increase their quality of life.

Regardless of the reasons, we work with top buyers and companies for people looking at selling a policy or for individuals who are wondering how to sell an insurance issue.

Common Reasons To Sell

The life insurance is too expensive to maintain - This is a very common reason for people who hold whole life insurance, variable life, VUL or other permanent policy that has significant ongoing expenses and premiums.

Policy is no longer needed - Sometimes situations change and you may have enough term insurance perhaps or other type of life protection. If an insurance issue is no longer needed, than looking at selling the policy for a cash settlement can be the right choice.

Failing Health or Terminal Illness - Sometimes a large cash settlement now or viatical life settlement can bring more comfort and rewards to you and your family than waiting for a collection on a policy at death.

Age

The minimum age that is usually needed is 55 years old. This can usually bring in the best cash money offer for people looking to sell a policy. When selling an issue, a buyer is normally looking for 55 years old or higher.

Visit: Selling Insurance

Need an Estate Lawyer?

Life Settlement Insurance - Sell a policy

2011-07-24T09:00:00.000-07:00

Selling or transferring a life insurance policy for a cash settlement is a growing market designed to provide a solution for many life policyholders. Viatical or life option transfers are available to people who qualify. There are many reasons why someone may want to sell an insurance policy, get a quote or transfer it for a cash settlement.

What is a Life Settlement?

A life settlement is the sale of a life insurance policy - to a 3rd party for an amount greater than the cash surrender value.

These transfer settlements allow the owner to obtain a cash payment while the new owner assumes the right to the policy.

Reasons to consider viatical life options or to sell a policy.

They include:

The life insurance policy is no longer needed or wanted

The premium payments have become unaffordable and they are considering surrender of the policy for cash value

Insured qualifies for a new life issue which is more affordable than old policy

The issue was taken out by a business to insure a key employee, and the business no longer needs the coverage it provides

The insurance policy is about to lapse

Change in estate planning and financial circumstances have changed and there is a need for cash now to cover a major purchase or improve

quality of life and change in life circumstances

There are many reasons why someone should explore the cash settlement option to transfer a policy. These transactions are done all of the time. We are an expert training company and life settlement advisors. We help customers and brokers.

The most suitable to consider transferring or selling their life policy for cash

Most of the time, the age group should be older policyholders and where the life insurance is worth $100,000 in face or more. In these cases, a sizable market may exist for someone to buy your issue and create a cash settlement option for you.

People are usually eligible to a lot more than any cash value the policy might have.

Life Option Case Studies - examples of viatical cash settlement amounts

A 75 year old man with term life insurance taken out many years ago was going to let the policy lapse. The insurance was no longer needed for the family protection it was originially intended for. Instead he sold the issue through a life option settlement and received $98,000 cash.

Sell Insurance Policy

Sell a life insurance policy

2011-07-20T08:19:00.000-07:00

What is a Life Settlement?

A life settlement is the sale of a life insurance policy - to a 3rd party for an amount greater than the cash surrender value.

These transfer settlements allow the owner to obtain a cash payment while the new owner assumes the right to the policy.

Reasons to consider viatical life options or to sell a policy.

They include:

The life insurance policy is no longer needed or wanted

The premium payments have become unaffordable and they are considering surrender of the policy for cash value

Insured qualifies for a new life issue which is more affordable than old policy

The issue was taken out by a business to insure a key employee, and the business no longer needs the coverage it provides

The insurance policy is about to lapse

Change in estate planning and financial circumstances have changed and there is a need for cash now to cover a major purchase or improve

quality of life and change in life circumstances

There are many reasons why someone should explore the cash settlement option to transfer a policy. These transactions are done all of the time. We are an expert training company and life settlement advisors. We help customers and brokers.

The most suitable to consider transferring or selling their life policy for cash

Most of the time, the age group should be older policyholders and where the life insurance is worth $100,000 in face or more. In these cases, a sizable market may exist for someone to buy your issue and create a cash settlement option for you.

People are usually eligible to a lot more than any cash value the policy might have.

Life Option Case Studies - examples of viatical cash settlement amounts

A 75 year old man with term life insurance taken out many years ago was going to let the policy lapse. The insurance was no longer needed for the family protection it was originially intended for. Instead he sold the issue through a life option settlement and received $98,000 cash.

Get quote on what your policy is worth now. Answer 7 quick questions and see if it is worth 5 or 6 figure cash or more.

Replacing Expensive Insurance

2011-03-08T15:28:00.000-08:00

If you own life insurance and are looking to explore the possibilities of selling the policy for a cash settlement, we can help.

More people are asking how they can sell their life insurance policy. With the changing needs of an older population, the growing cost of expenses and living, many policy holders are looking to create a cash settlement for their life ins but do not know how to go about it.

People are living longer and sometimes a life insurance policy has out lived it's benefit vs. what could be received if the policy was actually sold. Whether you have a term, whole life, endowment, annuity or other - you may be able to get a high quote for selling the policy in a settlement.

Insurance Settlement Quote

Insurance Policies For Cash

2010-12-17T16:11:00.000-08:00

The market is still strong for people looking to replace or sell their life insurance policies. Variable, Term or other. The process can be explained and companies can be provided to you for free to give you a quote on getting cash for your life policy.
Visit: http://www.howtosellmypolicy.com/contactus.html

While the age for such potential sellers was normally over the age of 60 - the market has opened up more. So if you own a term, variable or other type of life policy you wish to sell, please look into this market. It may be very worth your time.

Convertible Term Insurance Help - Sell, Buy Term Life - Convertible Policy - Classified Ad

2010-09-27T08:51:00.000-07:00

Most term insurance policies are convertible after the term on the policy has ended. A 30 Year Term Policy would be convertible into a whole life or other life insurance contract or plan. This same convertible concept applies to 10 year term, 20 year insurance or other.
Conversion life features allow people to switch to permanent insurance from temporary term policies.

Term contract plans are less expensive because the insurance policy does not cover you for your whole life. They are less expensive because of this and are easier to underwrite. If you are looking to protect your family for 10 years, 20 years or other set time, a term insurance plan can be very affordable and the right choice.

There is no cash value on a term life policy.

Convertible Term Insurance Help - Sell, Buy Term Life - Convertible Policy - Classified Ad

Transfer life insurance - sell life policy, cash sell - Classified Ad

2010-09-27T08:14:00.000-07:00

Charitable Remainder Annuity Trust

2010-09-03T09:42:00.000-07:00

A charitable remainder annuity trust can be done in an estate plan where a fixed income interest passes at least annually to one or more non charitable beneficiaries and at the death of the last income beneficiary or at the end of a term or years not greater than 20 years.

Learn how to lower your taxable estate using allowable tax rules. Avoiding Probate and knowing how to properly fun a trust in an estate is one of he most important things you can do for yourself, family and or business. Learn how to use your life insurance and other assets to avoid paying high estate taxes.

Contact American Investment Training for free estate tax planning help including information on Charitable Remainder and all trusts that best fit your situation

Visit: Estate Tax Help

American Investment Training - The financial training professionals

Convertible Term Insurance Cash Settlement Options

2009-10-27T10:29:00.000-07:00

People who own convertible term insurance policies with a face value of $50,000 or more can sell there life insurance for a cash settlement through www.howtosellmypolicy.com. Insurance policy buyers (Term, Whole Life, Variable and more) are in our network to provide settlement options.

Reasons to sell a life plan or contract will vary with each person but it normally comes down to need and affordability. When people are considering a viatical life settlement or looking to sell a universal life policy for instance, it is normally based on a terminal illness, expensive premiums or just need.

Although selling or transferring life plans and policies has become a popular market for people looking to get money for their contract, it is not meant for everyone. For this market to work, there has to be buyer incentive as well. Investors looking to provide cash to a life insurance owner looking to sell will want a high rate of return - and fast.

Do you know the market value of your life insurance policy? You may have a large asset available as cash to you right now. A Viatical settlement is when an insured policy holder receives cash based on the value of the life insurance policy value. The policy is sold to a third party and the insured receives proceeds. If you or your family owns life insurance that you no longer want because of high premiums, need for cash or other reason - you do not need to just let the policy last. We have buyers in the market who can price up your life policy for a cash settlement or transfer. A life option or viatical settlement allows for policyowners to sell their insurance for a high level cash payout. Main Reasons to Transfer Death Benefit can be numerous and personal. They include:

The life insurance policy is no longer needed or wanted

The premium payments have become unaffordable and they are considering surrender of the policy for cash value

Insured qualifies for a new life issue which is more affordable than old policy

The issue was taken out by a business to insure a key employee, and the business no longer needs the coverage it provides

The insurance policy is about to lapse

Change in estate planning and financial circumstances have changed and there is a need for cash now to cover a major purchase or improve quality of life and change in life circumstances

There are many reasons why someone should explore the cash option to transfer a policy. These transactions are done all of the time. We are an expert training company and life settlement advisors. We help customers and brokers.

Get Settlement Options

Decreasing Term Policies

2009-08-03T17:52:00.000-07:00

Decreasing Term Life Insurance is a cost effective way of arranging life assurance.
Decreasing Term Life Insurance is usually taken out to repay such things as loans and mortgages in the event of the death of one of the lives assured but can occasionally also be used to provide family protection cover.

It should be noted that the amount of Decreasing Term Life Insurance decreases during the term of the life insurance policy normally approximateley in line with the amount the loan or mortgage decreases so there should normally be sufficient life insurance cover in place to clear the liability in the event of the death of the life/lives assured during the policy term.

The premium normally remains constant but the amount of the premium reflects the fact that the life insurance cover is decreasing.

Decreasing Term Life Insurance is normally arranged either payable on a sole life or joint life first death basis.

In the event of the lives assured being alive at the end of the policy term the Decreasing Term Life Insurance policy normally finishes and nothing is payable.

Critical Illness cover can sometimes be included in Decreasing Term Life Insurance policies to pay out upon one of the policy holders being diagnosed with a specific critical illness.

Alan Hope operates a lifestyle management and concierge services business.

Please visit his website at: http://www.arrangelilifestylemanagement.co.uk/id129.html

Get the Warren Buffet System

Term Insurance Policies

2009-05-28T17:14:00.000-07:00

Convertible term insurance can be sold for a cash settlement if the face value is at least $250,000.

Basics of this policy

Temporary insurance for a period of years is known as term insurance. These policies can be 30 year term, 20 year polcies, 10 year insurance or other length of time.
Term contract plans are less expensive because the insurance policy does not cover you for your whole life. They are less expensive because of this and are easier to underwrite. If you are looking to protect your family for 10 years, 20 years or other set time, a term insurance plan can be very affordable and the right choice.

There is no cash value on a term life policy.

30 Year

This is usually the longest length of time for a term insurance plan. 30 year temporary policies will carry low monthly premiums, provide for a beneficiary (one or more) and protect the insured's family or other for 30 years. Once the term is completed, the contract will expire.

Annual Renewable Term

A key strength of Annually Renewable Term (ART) is in providing the insured with low-cost death benefit protection. Renewable offers term life insurance coverage that lasts one year. Coverage may be renewed for successive one-year periods to age 95. Premiums increase annually and are guaranteed for five years. These policies can be converted anytime up to the final conversion date shown on the data pages, which is the earlier of the level premium period or insured's attained age of 70.

Annual Term is designed to:

Provide businesses with temporary protection during the costly start-up phase

Help fund a business buy-sell agreement, or provide temporary collateral as proof of credit

Help balance basic life insurance coverage needs and temporary cash needs such as helping replace household income in the event of death

SELL TERM LIFE POLICY

Expensive Insurance Premiums When Stock Market Declines

2009-05-14T17:51:00.000-07:00

I recently let a variable life policy expire because the insurance costs were not being covered by the value of the insurance policy and the investments behind it.

I bought this VUL in 1999 and I was paying $250 every 2 moths or so and then I completely stopped paying on it in 2002. It had a $250,000 death benefit. The stock market rose enough over the last 6 years that the insurance costs were covered enough where I did not need to pay the flexible premiums on it. Variable Life Policies have flex premiums.

Well all that changed in 2008 and 09 of course and I was getting more emails and notices from my broker that I need to put more money into this policy. Sometimes the money needed was $400 or more. I have other life insurance and so I decided that I will be sinking money intoo this if the stock market continues to decline.

I am not over the age of 55 so I was not able to sell it.

If you own a life policy, are over the age of 55 and the face value is $250,000 or more, you can possibly sell the insurance for a cash settlement. View the links on the side of this blog or visit: How To Sell a Life Policy

Whole Life Death Benefit - Investing Whole Issue

2009-02-22T16:31:00.000-08:00

Investing in a whole life insurance policy requires a committment from the insured as the policy is meant to last a person's "whole life" and provide a death benefit to who the proceeds should go to. Premiums are more expensive then Term issues.

Get Free Whole Life Quote Now - $500,000 $2 million or other.

Should I Invest In A Whole Life Insurance Policy

If people are depending on you for income like a spouse or children, having life insurance is a good idea. If you were to die prematurely, your family would be able to continue to live in the manner to which they have become accustomed. Without an insurance policy the loss of income in the event of your premature death may also mean the loss of a home for your family or the loss of a quality education for your children. A life insurance policy would prevent that if anything should happen to you but with so many different types of life insurance it can be difficult to make a decision.

There are many different types of life insurance policies but they will generally be in one of two categories. A whole life insurance policy or a term life insurance policy. A whole life insurance policy will remain in effect for the rest of your life, as long as you continue to make your monthly premium payments. A term life insurance policy is good for a certain time period and then it expires.

An insurance salesman would tell you that a whole life insurance investment is the best way to go. It's good for the rest of your life so you will never be without coverage. It accrues cash value and can be used as an investment vehicle. The money in your account grows tax-deferred. If you ever needed money you could borrow against your life insurance policy. All of these sound like good arguments for making a whole life insurance investment and for many people it is but for some it may be better to go with a term life insurance policy.

A term life insurance policy can give you a lot of coverage for substancially less money. The monthly premium payments for a term life policy are only a fraction of what it would cost for a whole life policy. It's true that a term life policy does have an expiration, but if you think about it that may not be a problem. If you need life insurance to make sure that your family has a place to live and that your kids get through college, a term life insurance policy can certainly make sure that happens. If the term of the insurance policy lasts long enough to see your kids graduate from college and lasts until your house is paid in full then the insurance policy has served its purpose and you don't really need life insurance anymore.

With the huge savings in monthly premium payments for a term life policy you can make your own investments for cash growth such as bonds or mutual funds etc. You will get a better return on your investment than you would with a whole life insurance policy because whole life policies come with various fees, commissions, and charges that most other investments don't.

Life insurance itself is a very intelligent move to protect your family but you may want to think twice about a whole life insurance investment. For some people, whole life is a great option but it's not the best for everyone, in every situation. Sometimes term is the better choice. You could consult with a financial planner before making your decision but you may be well served by a term life insurance policy and putting the substantial savings off of your premium payments into other investments. Some people need a good comprehensive life insurance plan, other just need final expense insurance or a high risk life insurance plan. What ever life insurance information you need you can find by reading my articles.

Click here to get a free life insurance quote.

Endowment Plan - Endowment Policies For Money

2009-01-11T06:56:00.000-08:00

Learn how to sell or transfer your life insurance policy or endowment plan. Term, whole life, endowment or other life issue can be sold for cash. We are a nationally known training company with relationships that service selling policy situations for clients. Free quotes.

An Endowment Plan is a contract that pays a death benefit out after a specific time to the insured. If the insured person dies during the endowment period, the face amount death benefit is paid to the designated benficiary.

The periods that most plans are issued for include terms like 5, 10, 15, 25 years.

Selling or transferring a life insurance policy for a cash settlement is a growing market designed to provide a solution for many life policyholders. Viatical or life option transfers are available to people who qualify. There are many reasons why someone may want to sell an insurance policy, get a quote or transfer it for a cash settlement.

Some life ins policyowners simply do not need the issue any longer. Their loved ones have other protections or the policy is just not needed. Getting a price on what your insurance is worth before allowing it to lapse could change your life. Settlements can reach 100k, 200k cash or more.

Any insurance plan can qualify for a quote and cash settlement. These include Endowment, Term, Universal Life, Variable Universal (VUL) and Whole.

Sell Endowment Life Policy

Term Life Insurance Quote - Financial Protection For Your Family

2008-11-21T18:13:00.000-08:00

As a result of rising funeral costs and as a hedge for replacing any lost income in the event of the death of a loved one, most families will have life insurance coverage for each member. Choosing the best life insurance for you and your family provides comfort not only because it provides benefits in the event of a death, but other helpful benefits also.

There are many choices in the different products offered by life insurance companies and providers. It is advisable to speak with an expert on the different types of insurances prior to selecting a final choice. Financial professionals are licensed and practiced in helping you to select the benefits package that will suit not just your needs now and in the future, but conform to your budget. The two different products I am going to explore today are to outline the differences between a term life insurance quote and a universal life insurance quote.

When searching for a term life insurance quote or a universal life insurance quote you will see immediately that the premiums for the universal policy and much higher than the term policy. This is mainly because the term life benefits are only able to be paid once the insured has passed away. As for universal policies they come with both death benefits and cash-value due to the fact it is a more permanent kind of insurance.

Being different from term life policies, the universal policies together with the death benefits along with a savings component which is invested for you, it is also known to be tax-deferred income. The best part about the savings component for these policies comes with a choice to cash out a part of your tax deferred money when the maturity date arrives, this being a great investment to save for big life events. A person can also choose to leave the added money completely untouched with a promise that the money be paid to the beneficiary as part of the death benefit.

Term life insurance is a pure life insurance and any amount is paid only if the insured person dies due to certain circumstances.So term life does not have any applicable cash value and cash is paid only if the insured person passes away. Term Insurance is live and applicable as long as the premium is paid on time.If the premium is stopped, the coverage is stopped as well and no insurance benefits are extended even after the death. Young person are less inclined to get a term life insurance quote.

Many financial advisors will choose a universal life option for their customers due to the ability to have a tax shelter provided and built in upon opening the account. There are few options that one can invest in that can provide that type of IRS protection, so the appeal is two-fold. Talk to your financial advisor and discover what the best product for your family might be.

Quickly receive up to 5 FREE universal life insurance quotes from the major life insurance providers by completing our short 4-minute form at Life-Insurance-Quoter.com. Just a few minutes of time now could save you thousands of dollars over the life of your policy. We've established relationships with major insurers so no matter which one you choose, you'll have a designated local agent to speak with anytime you wish. Visit us now and discover just how low your life insurance rates can be.

Questions and Answers on Life Insurance: The Life Insurance Toolbook

The Basics Of Life Settlement And Viaticals

2008-11-06T16:48:00.000-08:00

Individuals 65 and older or someone being faced with an expensive medical illness who is in need of a large sum of money, you have an option that may be better for you than seeking a personal loan. If you have a life insurance policy, you may want to consider selling it to a third party to receive the money you need.

As an elderly person, you may be faced with bills you cannot afford. You may be retired, to tired or unwilling to go back to work at your age, and not able to pay your living expenses. In other cases you may just not need your policy anymore, such as if you no longer have a beneficiary.

As a terminally ill individual, even if you don't want to treat the illness because the prognosis is poor, you still will want the rest of your days to be bearable and pain-free, which may require costly procedures or medications. Those in this position are often on a fixed income and unable to afford the portion of the bills that their insurance may not cover. On top of all this, you may come to a point where you are unable or too uncomfortable to care for yourself and live completely on your own.

What are viatical and life settlements?

A viatical is where someone who has been diagnosed with a terminal illness decides to sell their life insurance policy to a company who will take over the beneficiary status and payments on the policy in exchange for a lump sum payment. A life settlement is essentially the same thing, except that it involves an elderly person, who may be completely healthy.

If you would like to consider a viatical or life settlement, you may want to find out how much you will can receive for cashing in your policy. Many companies that purchase such policies will give close to the face value of the policy, but the exact percentage will vary.

What are the benefits of a viatical or life settlement?

There are many benefits that a viatical or life settlement can afford a retired person or someone that has been diagnosed with a terminal illness.

- You may need the money to pay for your current living expenses or on anything else of your choosing, such as a trip or vacation.

- You can use the payment you receive to pay off mounting medical bills and buy medication to help manage the pain of your illness. Hopefully, you will be able to claim a good amount of this on your Medicare or other insurance policy.

- You may also want to consider using the funds to pay the costs of living in a retirement or nursing home. It makes sense to want the time you have left to be as carefree as possible.

While you are still healthy enough, you can spend time joining in activities with your peers and you won't have to do other things, such as cook meals. As your condition progresses you may become less able to do many things on your own. When this time comes you will already be at a place where you can receive daily help and where you have already formed a relationship with the staff.

What are the drawbacks of a viatical or life settlement?

Although viatical and life settlements may seem like a dream come true, there are some drawbacks. For instance, there is a reason you decided to purchase life insurance in the first place - to pay for funeral and burial costs and to take care of your family after your passing. This may be the biggest factor that would keep one from cashing in their policy. The good news is that you can make arrangements that continue to keep your final expenses from being a burden to your family.

First, you can look into using a portion of the money you receive to purchase a burial plot for yourself, as well as a casket, funeral home, and other related expenses. Also, you probably purchased your policy in your younger days - when you had minor children to be concerned about if the worst were to happen. Now that your children are grown, you can use the money to take care of your own needs.

How to make the decision that is right for you

When making your decision on whether or not to cash in your life insurance policy, you will want to take all of the above factors into consideration, as well as talk it over with your spouse, children, and doctors.

- You and your spouse should make the final decision together. After all, they are the ones who would receive the remainder of your policy if you were to keep it. You both need to consider the cost of comfortable living expenses for your spouse and if they would need the life insurance funds to achieve that.

- You should also discuss this with your children to get another perspective. Furthermore, you can use this opportunity to explain to them that all of your arrangements will be taken care of with a portion of the money.

- If you have been diagnosed with a terminal illness, your doctors can let you know how quickly they expect your condition to move and help you come up with a rough figure of what it may cost. You will want to be sure that, if you choose a viatical settlement, it will be enough to support you during your illness and pay for your arrangements after your passing.

A viatical or life settlement may be the best choice for a retired person who no longer needs their policy or someone with a terminal illness who has an overwhelming amount of expenses to pay. They may have little income as it is, insufficient healt insurance, or not want to burden their family. If this sounds like you or someone you love, find out the details about the policy in question, figure out if it will be enough, and talk it over with those involved. You may end up with a great solution for everyone.

David Springer is a consultant for Sovereign Funding Group. Sovereign Funding Group is an experienced, reputable company that offers convenient, no-risk services to help you with the selling of your deferred payments and business financing including viaticals and life settlements.

Sell a Viatical Life Policy - Get cash for your insurance.

Settlement Insurance - Understanding The Tax Implications Of Life Settlements

2008-11-06T16:42:00.000-08:00

Understanding the tax implications of replacing or selling existing life insurance coverage will help shed some light on the options available to financial advisors and policy holders looking to capitalize on the hidden value in their life insurance plans. Policy holders need to know what the tax implications are for coverage payments in advance of death. They need to know whether viatical agreements will be taxed, and they need options when it comes to replacing expensive or undesirable life insurance policies with more favorable policies. Following are some ideas to help consider taxation of life insurance proceeds both as pre-payment advances for viatical purposes and in the case of life insurance settlements.

Viatical or Advance Payment Coverage

Viatical payments and accelerated payment of coverage in advance of death remain tax-exempt. Congress continues to favor the tax-exempt status of these policies and therefore, will probably remain tax free. To be sure, viatical and advanced payment plans cover medical bills and allow terminally or chronically ill policy holders with a life expectancy of two years or less to use insurance coverage now instead of later. Some states also exempt viatical settlements from taxation.

IRS 1035 Exchange Rule

Under the 1035 Exchange rule, the IRS allows policy holders a way to defer taxes. David Friedman explains in a Street Talk article that the 1035 rule allows “the cash value in an existing life insurance contract [to be transferred] into another life insurance contract without creating a taxable event at the time of the transfer. Any taxable gain in the existing life insurance contract is deferred as the new contract assumes the basis that had been established in the original contract.” While replacing expensive or unneeded life insurance policies with new ones is a financially savvy idea, there is an after-tax alternative that can meet and significantly exceed the advantages of a 1035 Exchange.

An LIS could sell in a tremendously robust secondary marketplace for proceeds as high as 200 or 300 percent of its cash surrender value (CSV). It’s not uncommon for investors to purchase policies from policy owners who are 65 years old, have a life expectancy between three and 12 years, and whose policy is cost-effective to enforce. The concept is simple. Individual policy holders sell their life insurance coverage to the highest bidder. When this happens, the investor is named as the beneficiary and the seller receives a cash payment. The buyer assumes the yearly premium payments and collects the coverage proceeds when the policy is executed upon the demise of the seller.

The life insurance settlement can trigger ordinary taxable income and a capital gains tax. If the cash surrender value equals less than the premium contributions to date, the difference between the premium contributions and the settlement amount is a taxable capital gains. If however, the cash surrender value equals more than the premium contributions to date, two things happen: The difference between the premiums paid to date and the cash surrender value are taxed as ordinary income; and the difference between the cash surrender value and the settlement amount is taxed as capital gains.

Policy holders wishing to replace their existing coverage with less expensive coverage can do so more profitably in many cases than using the tax deferred portion of the IRS 1035 Exchange rule. Of course the after-tax proceeds of a life insurance settlement could be gifted to a charitable non-profit organization or a charitable trust. These basic tax implications regarding life insurance proceeds should prove useful in opening up further dialogue with financial professionals and advisors.

Life Insurance Settlements, Inc. (LIS ) is one of the largest and most experienced brokers in the life settlement industry, as well as the number one choice for financial professionals seeking solutions for their Senior client life settlement needs. LIS provides the tools, support and education necessary for the financial or insurance professional to offer these as a complimentary service.

FREE Health Insurance Price Comparisons for Individuals and Families

Cash Value Policies - Selling Insurance, Money Settlement

2008-11-04T15:40:00.000-08:00

Do you know the market value of your life insurance policy? You may have a large asset available as cash to you right now. A Viatical settlement is when an insured policy holder receives cash based on the value of the life insurance policy value. The policy is sold to a third party and the insured receives proceeds.

There are certain cash benefit values to each policy for settlement information.

With the advent of new financial and insurance technology, the amount of life insurance wealthy individuals can purchase usually exceeds the amount their beneficiaries require. The insured can profit during their lifetime, if this "excess" is managed properly.

The availability of a secondary market for life insurance policies ( life settlements ), is what makes this possible.

Life Option Case Studies - examples of viatical cash settlement amounts

A 75 year old man with term life insurance taken out many years ago was going to let the policy lapse. The insurance was no longer needed for the family protection it was originially intended for. Instead he sold the issue through a life option settlement and received $98,000 cash.

If you own a life insurance policy that you no longer wish to own, you can see if it can be sold for a cash settlement. People who wish to get cash in stead of paying the premiums on an existing policy can get a quote.

"How to sell a life Policy" We are a training company that does not charge for assisting policy owners of getting a quote on selling thier life insurance policy. We simply provide the professionals to get you the quote and complete a transaction for you.

Some case studies have shown people getting $100,000 and up in 1 time cash settlements.

These types of policies include Term Insurance, Whole Lofe, Universal life and more.

Do not let you policy lapse, gain cash to improve your life and trust a reputable source to get you the information you need.

If you own life insurance and do not want to continue the premiums or you just don't need the policy anymore - contact us for a quote on what your insurance is worth.

Advantages of a secondary market viatical settlement include:

Reduction or elimination of current premiums.

Reposition non income performing assets into income producing assetsand increasing net spendable income. Provide assets to use as current gifts to heirs.

In the end, these policy sales are on a case by case basis. Using a professional insurance firm with the best possible market for these life issues will provide the insured with the best possible cash distribution or payout settlement.

Money For Life Insurance

Convertible Term - Selling Term Policies

2008-10-22T07:04:00.000-07:00

There is a very active buyer's market for people looking to sell a term life insurance policy that is convertible. This is where a policyholder looks to sell their term or other insurance for a set cash amount and transfers the life contract to the buyer in exchange.

This is not a new market, but it is a growing one. American Investment Training works with the upper tier of life insurance settlement brokers to provide the selling clients with the education needed so the selling customer understands and the highest price for their term policy.

Age

The age of the insured should be 55 and older. An age below that will not attract the best buyers or the top price. This is because (to be blunt) the seller has too many years to live if they are perceived to be too young and thus the buyer of the convertible term will have to wait much longer to collect the face value of the issue. This is why the age of the person selling is an important factor to determine price value.

Face Amount - Death Benefit

The market the top companies look for including the affiliates of American Investment Training is $250k face amount or minimum death benefit of $250,000. If you have a policy that is a little less, we can most likely find an attractive buyer. The death benefit is the amount of cash paid out to the beneficiary upon death of the insured. When selling life insurance, the beneficiary becomes the buyer or choice of the new buyer.

Cash Payout To Sell

Payouts to people looking to sell their term, universal life or other policy in cash can be anywhere from $70,000 to hundreds of thousands of dollars or more. Much of the cash payout amount is based on age, face amount, type of insurance the person is looking to sell and any outstanding loans that are in place against the policy.

Reasons People Sell Life Insurance

There are many reasons why a person would look to sell a term life policy or other insurance contract.

Quality of Life - Having the cash to live a better life now

Premiums too Expensive - Sometimes the premiums become too costly vs. the benefit of the policy itself. Getting the money up front could be a more attractive option for someone looking to sell

Policy no longer Needed - Life insurance like other issues may outlive it's primary usefulness vs. using money now

There are many different types of life contracts that can be used including Convertible Term, Universal Life, Whole Life, Endowment Plans, and more. If you are over the age of 55have a policy with a face value of $250k or more, you can contact the company using the link below for a free analysis and quote on what your issue may be worth.

Selling Life Insurance

Find Affordable Short Term Health Insurance