So, you’ve reached the conclusion that your life insurance policy is totally obsolete. But, should you surrender your policy, or should you sell it?
Selling your life insurance policy can incur many benefits. For example, you can receive cash in exchange for selling your policy to the right company. By doing this, you will relinquish all rights to your life insurance policy, and you will be left with the money that you received in exchange for surrendering those rights. It is vitally critical to determine whether or not this type of alternative is appropriate for you. There are many people who benefit from restructuring their funds in this fashion. You should weigh the relative pros and cons of making this decision, before you do anything. In other cases, surrendering the value of life insurance may prove to be even more profitable. For example, life insurance surrendering entails very little taxed income.
Below, you will find a few life insurance scenarios that are quite common:
Suppose an individual has several children who require the security blanket of a life insurance policy. This policy would keep them secure after the untimely death of their parent. However, once these children mature and pursue careers of their own, they become more self sufficient, making that life insurance policy obsolete. In these situations, it may be necessary to surrender or sell a life insurance policy, if these options are possible. If an individual’s family is financially secure, then there is no need for such a policy. He/she can, instead, cash in this policy, receiving money for his/her greatest expenses. As you can see, this is an effective financial tool for those who no longer see any practical use for their life insurance policy. This especially applies if that insurance holder’s spouse has passed away.
Suppose a senior citizen ran a business for decades, only to witness its complete decline. In this type of situation, living expenses and bills can become too demanding. And, a life insurance premium each month would simply be impractical, considering the stressful nature of the situation. As you can see, sometimes it is best to eliminate certain luxuries from life in order to attend to other important expenses. If you are currently in a state of a financial shift, or a financial loss, you may consider restructuring your plan. Speak to an agent about selling or surrendering your policy.