HORAN Capital Advisors

Can You Sell Your Insurance Policy?

Contributed by Gregory L. Hoernschemeyer, CLU

You built equity in your life insurance policy and that policy is your property so you have the power to decide how the policy should be used for you and your family.  Considering a life settlement is a legitimate and reliable choice to create financial options for your future.

HORAN can help you by empowering you with the information you need to decide if selling your policy, or a portion of it, is right for you. We will walk you through the entire process and explain the options so you can make an informed decision for your family’s financial future.

Determining if this is the right choice for you should be carefully discussed with family and trusted advisors. There are certain standards that the policy and the insured must meet in order to qualify.  Financial and lifestyle changes may have you rethinking your life insurance. 

Premiums Are No Longer Affordable

Depending on the terms of the policy you own, changes in the insurance market could drive up the price of the premiums you pay. These changes can force some people to surrender their policy or let it lapse. For people who choose to get rid of their policy, a life settlement can be a more financially beneficial option.

Some examples of why someone may no longer want to pay premiums include:

  • Financial hardship due to medical bills, legal issues, or tax issues
  • Beneficiaries refuse to pay premiums
  • Premiums have escalated due to policy performance
  • Financial hardship due to expensive assisted living costs

Your Lifestyle Needs Have Changed

As the insured moves through the various stages of life, they may find that they no longer have a need for a life insurance policy.  If you qualify, a life settlement could be a valid option.  Here some examples of lifestyle changes that could make a life settlement an option:

  • Divorce
  • Retirement
  • There is no longer an estate tax burden
  • The beneficiaries no longer need the proceeds
  • Job furlough or forced early retirement

The Big Picture

There are a lot of different scenarios where this option can help you turn your insurance policy into a living benefit.  The choice may be a profitable way to alleviate costly premiums on a no longer needed policy.

Contact HORAN to discuss your specific situation and let us know how we can help.