I’m sort of inexperienced in the insurance world and am just now getting into a life insurance policy. We never really know when our time on this earth will be up, and so it’s better to be prepared than to be sorry. With a wife and little ones in the home still, it’s my responsibility to provide for them right now, and to make sure they’re taken care of after I’m gone. And should something tragic happen, a good life insurance policy would do just that.
And here’s where my inexperience comes in. Did you know that your insurance policy has a cash value? There are different scenarios that could apply here, but you have the option to surrender or sell your life insurance policy should you no longer need it.
So of course, you might ask why someone would ever sell their life insurance policy?
Well, say that you’ve had your policy a while and your financial life has taken a turn for the better. You find yourself with plenty of money to take care of your needs. Your children have all started families of their own and are doing well financially, and no longer need the cash your life insurance policy would give them.
In this scenario, you have two options: You could either surrender or sell your life insurance policy. And since you’ve been paying your premiums for quite a while, you are going to want to go with whichever option gets you the most cash in return.
Surrendering means you’ll be working with an underwriter to determine the cash value. Selling means that an agency would be negotiating the highest possible cash payout to you, more than often ending with more money in your pocket.
Seems pretty self explanatory right?
Each scenario is different. So to find out more about what you should do with your policy, click here to read more.
David Allred is the author and creator of CFW. David has been teaching entrepreneur minded people how to earn a full time income working from the comfort of home for nearly a decade.
Think about it. Never miss your kids’ events, set your own schedule, choose your own income and enjoy a lifestyle and income which most people only drool over!
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