selling of life insurance policy is part of a regulated industry. Even though you could try and go out on your own and find a buyer, it is recommended to work with professionals to help you. Consider working with:
A professional advisor
A life settlement broker who can represent you, provide you with counsel, and will search settlement providers for buyers on your behalf
A life settlement provider
Information You May Need
The type of life insurance policy you have and the premiums. If you have term life insurance, you may also want to find out if you can convert it to a universal life or whole life policy.
Personal information such as medical history and health information
The cash surrender value of the policy
How many years premiums will have to be paid for
Tips Before You Sell Your Life Insurance Policy
Make sure the people you are dealing with are licensed. Call your state insurance department to be sure.
Shop around to get the most value for your policy;
if you don’t feel comfortable with the deal, hold off until you get proper advice. The Life Insurance Settlement Organization is a good resource that may be able to help you.
Look into the tax implications of the sale. Selling your life insurance policy may have financial implications, for example, having to pay capital gains.
If the income from selling your policy changes your financial situation, it may affect your ability to qualify for government programs or subsidies, for example, Medicaid.
Selling your life insurance policy may incur fees. Review offers from several buyers or life settlement brokers and compare what costs will be involved.
If you are looking to take a settlement to finance something specific, beware that if you have debts, your debtors may be able to come after these funds. Make sure you understand how that could work.
Never agree to sell your life insurance policy if you are being pressured or are concerned with the decision or the advice you have been getting. Always get professional advice and if necessary a second opinion; there are many licensed professionals out there who will treat you fairly and can help you by providing information on your options.