You might have recently discovered that you can indeed sell a universal life insurance policy. This transaction, called a life settlement, makes it possible for seniors to get cash for life insurance policies they no longer want or need. This includes universal life insurance policies.
In this blog post, our experts explain how to sell this type of policy. Getting started is easy and you can even find out what your policy might be worth using our life settlement estimate calculator.
If you’re ready to learn how to sell your policy, here’s what to expect:
Three Steps to Selling a Universal Life Insurance Policy
There are three main steps to selling your universal life insurance plan.
- Finding out if you prequalify
- Completing your qualification
- Accepting your offer and receiving your life settlement payout
It is also important to note that you are not obligated to sell your policy during any step of the process.
Step 1: Finding out if you prequalify for a life settlement
Most policies that can qualify for a life settlement are universal life insurance policies. Other types of policies that can qualify include whole life, and even term life in some circumstances (although generally only if it is convertible). However, even if you have a universal life insurance policy, you’ll need to meet certain criteria to qualify for a life settlement. In general, life settlements are best suited for people who are 65 years old or older, have experienced a change in their health since they first purchased the policy, and own a policy of $100,000 or more.
In some cases, healthy policyowners who are over 70 and who have universal life policies of $200,000 or greater can also qualify.
Do you fit into one of these scenarios? Then you can may be able to prequalify for a life settlement! You can find out for sure by calling us, chatting with us, or completing out life settlement estimate calculator.
Step 2: Completing your qualification
If you do prequalify, one of our life settlement experts will find a time that works for you to ask a few more questions about you and your policy. After that, your dedicated expert will gather some additional details from your life insurance carrier, as well as from your healthcare provider or providers on your behalf. This information helps ensure we’re able to make the highest offer possible for your policy.
Step 3: Accepting your offer and receiving your life settlement payout
Now, your life settlement expert will finish gathering all the necessary information to complete your policy appraisal and make you an offer to purchase your universal life insurance policy. They may need to call or email you a few times to ask some clarifying questions. Soon thereafter – oftentimes within just a few days of gathering all necessary materials – you’ll receive an offer to purchase your policy. The offer carries no obligation, so if you wish, you may decline the offer and continue paying to maintain the policy. However, if you are happy with and accept the offer, we’ll begin the behind-the-scenes work necessary to complete the sale of your universal life insurance policy for a large cash payout.
If you’re ready to start the process of selling your universal life insurance plan, you can get started here.
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