Rising costs make it difficult for retired individuals to stay current on other payments.
Whole life insurance policies often carry higher premiums, promising a large return for your survivors. Insurers will pay significantly less than a policy’s value to buy it back, but there are other options to consider—especially if the policyholder decides to cash it in.
A report from the Napa Valley Register addresses one reader whose mother considered selling her insurance because she faced difficulty paying for her home.
“She should review her policy, because she now has options that were not available in the past,” the report said. “She can sell her insurance policy on the open market to investors willing to buy existing life insurance.”
These investors are often willing to pay two or three times what one’s insurer will pay in order to purchase a policy back. Individuals who will benefit from their parent’s policy may also consider paying premiums for him or her. This can maintain the value of life insurance coverage while ensuring its original purpose.