In other words it is now doable to sell your whole life insurance policy to the highest bidder and take a moolah settlement, called the life settlement, and use it for whatever purpose that fits your circumstances.

However, before going down this route I recommend that you consider your alternatives. Consider about it, there would be not really such thing as a life settlement industry if there wasn't a ton of wampum to be made switching old policies for new - which is the goal of the industry after all.

They are not in the life settlement business for their health or your profit. In fact it wasn't very many years ago when offspring who recommended that you switch an old policy with a new one were actually breaking the insurance laws in their states.

Buying life insurance is just about the most unselfish thing anyone can do. Having some advisor lecture you that you don't need it any more is habitually an irresistible opportunity to claim back to thinking of themselves.

Surrendering a life insurance policy, getting a bunch of gelt back for themselves and buying another life insurance policy with some of the proceeds and putting the rest in their purse is an offer they don't want to refuse.

However, the need for life insurance never goes away. The assets and persons you are protecting and the reasons you had better want to protect them change, but it's still there. The blood relative suggesting that you don't need the insurance anymore because the specific basis you bought it in the first place has changed are not looking out for you, they are looking out for them and their commission.

Before you thoughtfully consider a life insurance settlement proposal contact the agency that sold you the insurance in the first place. Go to the agency's web site, not that of the general agent - since they may have very different objectives, and see what options are available without generating a huge new commission for the everybody recommending that you commerce your old, according to them "outdated" life insurance policy for a new one.

Intellectualize about it, don't you imagine that State Farm, New York Life, Prudential and all the other well established companies have creative ways to adjust the billions and billions of life insurance policies they have sold to meet situations like this? For them keeping the life insurance policies on the books is the single most profitable thing they can do.

So talk to everybody at the home office who are receptive to make the adjustments necessary in the whole life policies you as yet have. Then seek the input of knowledgeable brood you trust, maybe members of your business to business peer group, who do not have a financial stake in the arbitration you make.


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