Is It a Good Idea to Sell Your Life Insurance Policy?

Depending on your circumstances, selling a life insurance policy could be beneficial.

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You may have seen commercials from companies trying to convince you to sell your life insurance policy. It’s called a life settlement, and you sell it to a third party called a life settlement provider.

Life settlements are gaining popularity mainly because more people know they are available. But how deep does this knowledge go? What happens when you sell your life insurance, and is it a good financial move?

What Happens When You Sell a Life Insurance Policy?

When you sell your life insurance policy, a third party purchases your life insurance for a cash payment less than the full death benefit. The buyer then becomes the new owner and beneficiary of the policy.