It is an uncommon transaction these days, selling one's life insurance for the invested value of the policy. However, it was quite common fifty or sixty years ago. Back then, funerals did not cost thousands of dollars, and people generally expected funeral expenses to be covered by the generosity of friends and family. Ergo, when they bought life insurance policies, they bought them with the intention of leaving their heirs a little something or cashing out the policy in an emergency.
Today, you can buy a life insurance policy and sell it, too. You usually have to have a few years' premiums invested in it to sell it, however. You cannot simply buy it one day and sell it a month later. The reasons to sell your life insurance policy in this day and age are similar to the reasons that your grandparents or great grandparents sold their life insurance policies, although you may be more inclined to keep your policy as long as possible now because of the higher costs associated with funerals. At any rate, here are three reasons you might sell your policy, or consider selling it.
Someone Close to You Is in Serious Trouble
A teenager or spouse who is charged with breaking the law in a big way may not be able to get out of jail or avoid prison without your help. After you get over the initial shock of the situation, you will probably be scrambling for funds to retain a defense lawyer and/or bail money. The more serious the crime, the more serious the trouble, and the more money you are going to need to help this person out of their sticky situation. Selling your life insurance will get you a lawyer and possibly bail bond money, too, depending on how much you have in vested value.
Someone Close to You Was Abducted
It is rather rare to be the close familial victim of an abduction these days. Too many devices, safety precautions, and safety and security measures prevent abductions, and what abductions occur are rarely connected to monetary demands. If someone very close to you was taken, and the kidnappers call and make monetary demands, your life insurance policy can help.
Your Home Is in Jeopardy
Edging nearer to foreclosure proceedings is every homeowner's worst nightmare. However, a change in circumstances, such as the loss of a major income and employment, can quickly put your home in jeopardy, too. If you sell your life insurance, it will help keep your home where it is for a couple of months and/or until you can figure out how to get more money and another job.
Have you done everything possible to prepare for your family after you pass away? So many of us think that there is always more time to take out a life insurance policy or think that we cannot afford one. What we fail to remember is that there may not be a tomorrow. If you were to pass away today in a tragic accident, would your family be able to survive? Would your family be able to continue living in your home? I started working on this blog after I went to a friend's funeral. It was that moment that I realized that I wasn't ready for death and that if it was to happen at that time, my family would struggle to survive.