Question
What is the name of your state?
Indiana
I'm 42, good health, Recently widowed, no children, now unemployed. I've had a $50,000 life policy in place for over 22 years.
Does anyone know of companies who will "buy back"(where you make the company that gives you $ the beneficiary) or will loan against the face value of individual life policy? Since I have no one to leave insurance $$ to & am needing cash a.s.a.p. seems like this would be a great solution to my problems. I don't even know the terminology for this transaction so any help would be greatly appreciated.
Thanks Much!
Answer
This is not a legal question. Call your insurance company for any cash value provisions.
OR, I'll give you $10,000 for naming me beneficiary if you'll put on a little sweatshirt I have made up with red and white circles on it (I'm a pretty good shot)
Answer
Thanks for the quick reply! I would have no problem making you the beneficiary in trade for $10K...but I'm not ready to die that quick, lol...at least for another 20-30 years I hope.
Thanks
Answer
What you want is called a "life settlement" (or if you had less than 2 years to live, a "viatical settlement") and there is a section about this on FreeAdvice.com.
HOWEVER, if you are in normal health the policy probably has no value to a potential investor, and in any event the amount is far to small even if your health were impaired. Just calculate the discounted value of $50,000 to be paid out in 30-40 years, and then deduct premium payments to keep the policy in force.