The market for selling your life insurance policy is called the Traded Life Policy market. Bought policies are often used second-hand to sell as low-risk investments.
Although this business is profiting tremendously in the United States, this market is relatively new in the UK. Many companies in the UK targets individuals who are critically ill and only have a few years of life remaining.
Why do people sell their Insurance Policy
The reason many choose to sell their life insurance policy is that they do not have any beneficiaries to handle the death benefit paid out by the insurance company. These individuals choose to cash in their policy and spend the money they get in return during the remaining years of their life.
Consequence of Selling Insurance Policy
It is important to consider if you have any children or family members still dependent on your income before selling your policy.
Another possible consequence of selling your policy is that the cash benefit could put you into a higher tax bracket and/or affect your inheritance tax.
But, these factors may not matter to you if you don’t have beneficiaries anyways.
Alternative of selling Insurance Policy
An option that many people are beginning to turn to is the purchase of critical illness coverage. This is a policy that, on its own, could potentially cost less than your basic life insurance monthly premiums and even reselling your policy. This coverage plan will pay out benefits if you happen to be diagnosed with a disease and need the money for the medical bills and/or other expenses. This term also ends when the policyholder dies, meaning that leftover benefits can go to listed beneficiaries. The difference between this and life insurance is that the premiums are lower and the plan works better for individuals with no beneficiaries.
Ultimately, this plan is in alternative to selling your insurance policy.
We would recommend you to talk to one of our advisers for life insurance quotes.
Any quote that your adviser provides you with will take into account your circumstances, your medical history, as well as your budget!
Call 011-3733-4610 – Monday to Thursday from 11.00 to 19.00 and on Friday between 11.00 and 16.00