What to do after selling your Life Insurance?
What Happens After You Sell Your Life Insurance Policy?
Challenges just seem to pile up when you are facing a financial dilemma. The stress, fear, impatience, and uncertainty can all be draining. Whether you need money to pay mounting medical bills, or living expenses, or just to fund a better retirement lifestyle, a sense of relief is one of the benefits that comes when a solution is found.
Selling your Life Insurance policy for a lump sum of cash - a transaction known as a Life Settlement - is one potential solution. While you will experience relief after the sale, it will also benefit you greatly to know what happens after you sell your Life Insurance in terms of your proceeds, tax implications, and the policy itself.
The Life Settlement Process
When selling your Life Insurance policy, understanding Life Settlement is critical. So before delving into what happens after you sell your Life Insurance, here's a very basic summary of the process. An experienced Life Settlement broker such as IMS Settlements does the following:
Evaluates the worth of the policy
Finds a Life Settlement provider (a buyer, typically an institutional investor) and negotiates the best price
Finalizes the deal in compliance with regulations
What the Seller does After the Sale
In addition to receiving a lump sum of cash, the original policy owner can stop paying premiums. The Life Settlement provider takes over the payments, as the provider is now in line to collect the death benefit when the insured individual passes away.
The seller's key responsibility after the sale is to determine whether any of the proceeds are taxable. There is no "Life Settlement tax" per se, but a portion of the amount may be taxable as a long term capital gain, depending on how much was paid in premiums, among other factors.
How IMS Settlements Can Help
IMS Settlements can help you through the Life Settlement process. We have more than 50 years of combined experience in the Life Insurance industry, a nationwide network of Life Settlement providers (which helps draw the best offers), a 100% Satisfaction Guarantee, and excellent customer service. Contact IMS for assistance or Request a No-Cost Policy Appraisal.
"IMS worked hard to help educate us about the process and the suitability of a life settlement. Once we got the process started he was transparent and professional."
- Maggie M.
IMS Satisfaction Guarantee
We hold ourselves to the highest standards of Service and Professionalism so if you don't like our work or our offers - let us know in writing and we will turn over your file.