Am I Eligible for a Life Settlement?

It all depends on certain factors. If you have a terminal illness or you’re at least 70 years of age, you may qualify for a life settlement. The face amount of your policy should be at least $50,000, and you must have an eligible policy.

Does It Matter Where I Live?

You can qualify for a life settlement regardless of where you live. However, every state has different rules and regulations. Harbor Life will do all the checking for you. Harbor Life handles the entire process.

How Old Do I Have to Be to Sell?

You must be at least 70 years of age or have a terminal illness.

Do I Have to Have a Terminal Disease to Sell?

No. If you’re over 70 years of age and you have an eligible policy, you should be able to qualify for a life settlement.

What About Term Life Insurance?

On most occasions, term life policies will qualify for life settlements if there is enough time left on the policies or the policies are convertible to permanent life insurance plans.

What About My Group Life Insurance Policy?

Group policies are usually eligible if they exceed $50,000. It’s also possible to combine insurance plans for a life settlement if they total more than $50,000 together.

What About a Federal Life Insurance Policy?

Federal life insurance can be a confusing matter. If you work for the government or in a federal capacity, you’ll be given basic life insurance coverage if you’re with the job long enough through a program called Federal Employees Group Life Insurance (FEGLI). If you decide to leave your federal employment, you typically have 31 days to determine if you’re going to rescind the policy or keep it.

If you decide to keep it, you can convert it into a sellable policy that can later be sold through the help of a broker who has access to different plans.

Can I Sell Multiple Policies?

If your multiple policies have a combined total of more than $50,000, you may be eligible for a life settlement.

Does the Policy Have to Be Above a Certain Amount?

The insurance policy must be at least $50,000 to qualify.

If I Sell a Life Settlement, Is It Taxed?

If you sell your life insurance policy, you will be taxed on the difference between what you’ve paid already and what you’ll receive. The good news is that the money you get will be taxed as ordinary income, so you won’t have to pay capital gains taxes on what you receive.

You are encouraged to meet with your own tax advisor to determine if a life settlement is in your best interest from a tax perspective.

How Is the Value of My Life Insurance Policy Determined?

You can determine the cash value of your policy with the help of a servicing agent or your life insurance company. Typically, a servicing agent’s contact information is listed at the bottom of your monthly or annual insurance statements. They’re licensed to evaluate insurance policies and provide data regarding full policy costs.

In some cases, annual statements provide this information themselves. Keep in mind that the value changes every year, so looking at an old statement isn’t likely to give you the most accurate information.

Some Final Thoughts

Deciding whether to sell your life insurance can be very difficult. On the one hand, doing so gets you access to quick cash and out of a potentially expensive plan. If you’re drowning in debt or have too many medical bills and you need money quickly, selling your plan could be the best option.

On the other hand, a life settlement makes it so that your beneficiaries receive nothing in the event of your death. Also, you’ll be taxed on whatever value hasn’t been covered by your monthly payments. While you won’t pay expensive capital gains taxes, a tax bill is probably the last thing you want to deal with during your golden years.

There’s a lot to think about when it comes to selling your life insurance, which is why speaking to the right people is an essential first step.

If You’re Ready to Sell Your Life Insurance Policy…

If you no longer need or want your life insurance policy, and you’re considering a life settlement, give us a call today for some free advice. We are Harbor Life, and we work with customers just like you every day to make sure that they can get the most cash for their unwanted or unneeded life insurance policies.

Don’t let your money go in the trash. Our qualified representatives have years of experience helping people just like you find the right providers willing to offer cold, hard cash in exchange for their unwanted life insurance plans.

If you live past your 70s, there’s a good chance your life insurance will expire before you or anybody in your family gets a chance to use it. If that happens, all those years of making payments on time will have been for nothing.

We don’t want this to happen. You deserve a financial reward for all those years you’ve been responsible.

If you’re looking to cash out early on your life insurance plan, call and let Harbor Life Settlements help. You can also visit our website for a free estimate today.