The 12th Installment of the I Need Money Right Now series will explain how to get money from your life insurance policy. If you have a whole of life or universal policy you'll be able to cash this policy in. Many people use these Whole of Life Policies as investment vehicles with protection just in case they need the money urgently.
Before I go on I would like to advise all readers to visit the USA.Gov website if you need urgent financial assistance. You can get financial help from the Government if you're on a low income or support a large family. if you're eligible you could apply for mortgage assistance, rental assistance and even get advice on loan consolidation and debt management.
I Need Money Right Now - Sell Your Life Insurance Policy
A whole of life policy or universal policy is a life insurance policy where you pay a premium forever and money is paid on death. There is no term for a Whole of life policy and this will run until you die. If you have a whole of life policy then this will have monetary value if you decide to cash it in. Many people get term insurance and whole of life insurance mixed up, it is important to remember that term insurance runs for a number of years and has no cash in value while whole of life runs until death and has cash in value.
|Credit: Images_of_Money/ FlickR|
Also it's worth noting that the cash in value rises if your unhealthy, this is because insurance companies believe that your mortality chances are higher, this is usually worked out by an actuary. The bottom line is if you're unhealthy and have made a significant contribution towards your policy you could get 80%, possibly more.
The first step to take is to check the insurance policy thoroughly to determine what kind of policy it is. If the policy is full of insurance jargon then call the company up to find out.
If the policy is indeed whole of life you need to ask the insurance company for a cash in value. You should also call other insurance companies who purchase whole of life policies to see if they're prepared to payer a higher amount. Explain any health issues you have and state your need for the money, some insurance companies pay slightly more if the life insured is experiencing financial hardship.
The cash in process could take up to 2 weeks depending on your policy and you should check the entire market for the best possible price. You can increase the cash in value by stating health problems. Before you decide make sure you weigh the pros and cons of cashing in. You should also consider if you have enough money set aside for love ones to make provisions after death. Good Luck
If you've enjoyed this post then feel free to share the contents. Also feel free to leave a comment as it's always a joy to hear from readers.
I Need Money Right Now Resources
Life Insurance Settlement Association
Get Cash From Your Life Insurance Policy