pay out policies in advance of death?

[stella999]

This is a more general question. I'm in Wa. state.

Is it legal/possible to sell the proceeds of a life insurance policy on my own life to someone/ an investment co., etc? I have a life insurance policy but I need the cash now. I would like, if possible, to sell the proceeds of my policy when I eventually die, to someone willing to give me a portion of that money NOW so that I can enjoy it. I would then put them as the beneficiary upon my death.

Any idea if this is possible/legal/ common practice?

Thanks.

Stella

 

[Some Random Guy]

Its called a viatical. search google.

Was more common in the heyday of unmanagable AIDS cases, but it is still going on now. Don't expect anyone to buy your policy for any real money unless you have a terminal diesase.

Some insurance companies do have clauses that let you claim on your life insurance while still alive to pay for end of life care. Contact your insurance agent if that is your situation.

 

[stella999]

got it.

Thanks so much for your help and the info. Not kicking the bucket anytime soon.

Do you know where to find organizations that may do this viatical thing, so I can ask and at least find out if it's possible and how much they'd be willing to give?

 

[somarco]

The companies that buy insurance policies are generally looking for someone terminal, expected to die within 2 years. An exception would be for someone 70+ regardless of health.

The higher price is paid for someone with a short life span, say 6 months or less. In that scenario you might get 40% of the face amount. As you move out toward 2 years the price drops dramatically to 10% or so.

Unless death is imminent, they wont be interested in small face amounts. Usually looking at $100k+ but sometimes will entertain smaller policies if death is near.

Permanent plans may get a higher price than term, just depends on many factors. If you have a perm plan strip the cash out before selling.

If you are 70 or older you can usually sell policies of $100k+ but most brokers are looking for jumbo ($500k) policies.

In addition to searching for "viatical" look for "life settlement" companies.

 

[stella999]

Thank you!!!!