Selling your
Life Insurance
Your life insurance policy is a valuable financial asset that is eligible for sale in exchange for cash.
Find Out if You Qualify to Sell Your Policy
Applying doesn't affect your credit score, and there's no obligation to accept funding.
Sell your Life Insurance Policy
Policyholders often find their life insurance no longer serves its purpose. Many think their only choices are to let the policy lapse or surrender it to the insurance company. In reality, a life settlement allows you to convert your policy into cash. By selling your life insurance policy, you can retain a portion of the coverage without the need for future premium payments. Coventry Direct, affiliated with Coventry First, consistently recognized as the leading life settlement company, has assisted tens of thousands of policyholders in assessing their life insurance settlement options. Don't accept anything less than what you deserve.
What Does Selling Your
Life Insurance Policy Mean?
Life insurance is an asset that can be sold just like your home or automobile. When you sell your life insurance policy––a process known as a life settlement––you receive a lump-sum cash payment or a combination of cash and coverage with no future premium obligations. The purchaser takes over future premium obligations and receives the death benefit when the insured passes away. A life settlement is a more lucrative option than lapsing or surrendering a life insurance policy and provides, on average, four times more than the cash surrender value. Check out our customer reviews to learn more about the benefits of working with Coventry Direct.
Are you eligible to sell
your Life Insurance Policy?
You're age 65
or older.
Younger policyowners may qualify if other factors are met.
You've had
a change in health.
Qualification is possible for those whose health has declined since policy purchase.
You own a $100,000+ life insurance policy.
Various life insurance types qualify, such as universal life, whole life, variable life, survivorship, group life, and term life.
Reasons to sell
your Life Insurance Policy?
Like many Americans, you purchased life insurance to protect your family or business. As circumstances change, however, so does your need for coverage, and considering a company to buy back your policy might be a great option. You may want to consider selling your life insurance policy if:
If maintenance costs are prohibitive, explore a life settlement as a solution to unaffordable premiums.
As your term policy approaches expiration, seize the opportunity to maximize its benefits and prevent lapses.
Facing medical expenses? Utilize a life settlement to address immediate financial needs and ease the burden.
Boost your retirement funds by selling your policy, providing peace of mind and additional income.
Have excess coverage? Retain a portion with a Retained Death Benefit to eliminate future premium payments.
How Much Is Life Insurance Policy Worth?
The value of your life insurance policy is influenced by factors such as the policy size, type, premiums, and your health. Opting for a life insurance buyout, where you sell your policy, typically yields an average fourfold increase compared to surrendering it back to the insurance company.
How to Cash in a Life Insurance Policy
The first step to cash in a life insurance policy is knowing if you qualify. We will need to know some basic policy and health information. You can provide this information by completing our online form speak with a policy specialist.
This portion of the process consists of signing an authorization that allows us to gather copies of your medical records and life insurance policy information.
Once the value of your policy is determined, you may receive an offer from Coventry First, our licensed life settlement provider. You can choose between selling your entire policy for cash or keeping part of your policy’s death benefit while eliminating future premium obligations. Timing varies when trying to cash in your life insurance policy. It all depends on how long it takes to receive and evaluate your medical records, how soon you are able to sign and return documents, and how quickly your life insurance company transfers ownership.
Frequently Asked Questions
A life settlement is a financial transaction where a policyowner sells an unnecessary life insurance policy for more than its surrender value.
Most life insurance types qualify, including universal life, whole life, variable life, survivorship, group life, and even term life.
Yes, you can sell your policy, eliminate premium payments, and keep a portion of the death benefit.
Keeping your personal information private is crucial to us. Review our privacy policy here.
The Tax Cuts & Job Act of 2017 simplifies the tax consequences. Unless an exception is met:
- Tax-Free: Proceeds up to your tax basis (total premiums paid) are not taxable.
- Ordinary Income: Proceeds exceeding your tax basis up to your policy’s cash surrender value are taxed as ordinary income.
- Capital Gains: Remaining proceeds are taxed as capital gains. However, terminally or chronically ill individuals may receive the entire amount tax-free.