Discover Hidden Cash in Your Term Life Policy
Term life insurance is one of the most affordable policies in which people can invest. As America’s most common form of life insurance, this type of policy insures that families are secure, should anything happen to the policy owner. The purpose of having term life insurance is to replace the income in your absence that you would otherwise be able to produce for your loved ones or your business.
What you will learn:
How Does Term Life Insurance Work?
Unlike other forms of life insurance, this type of policy can be taken out for 10, 20 or 30-year terms. This type of insurance also tends to have a much lower monthly premium compared to Whole Life and Universal Life insurance policies. If you continue to pay your premium long after the term is up, you automatically renew the policy for another term equivalent to the initial term. If your policy ends and you choose to buy another term life insurance policy, your policy premiums will likely increase. The younger and healthier you are, the lower the premiums. If you decide to convert your term policy later in life, you won’t have to provide proof of insurability or show that the policy owner is in good health. Lastly, a policy owner does not collect anything at the end of the term, provided that he/she is still living.
Converting Your Term Life Insurance Policy for Withdrawal
Term life insurance can be converted into another type of policy that carries a cash value, which means you would have access to withdraw a designated amount from the policy. The withdrawal would be based on the cash value of the policy. Keep in mind that when withdrawing, you are surrendering a portion of the policy’s total value. Permanent, Universal, Cash-Value and Whole Life insurance policies have the option for cash withdrawals.
Selling Your Term Life Policy for Cash
Contrary to popular belief, you can sell your term life insurance policy. Because a life insurance policy is personal property, a policy owner can transfer ownership to an investor. In exchange, the investor provides a cash payout to the policyholder and then assumes responsibility for all future premium payments.
Interested in finding out what your policy may be worth? Use the Magna Life Settlements Calculator to get an estimated payout value for your policy today.