Should you sell or cancel your life insurance policy? What are your options?


Todd Strobel and Kim D.H. Butler explore what people do when they can’t (or don’t want to) make their life insurance premium payments. On today’s episode, Kim dives into the possibility of selling your policy to investors of life settlements vs. just cancelling your policy and taking the cash value.

Kim discusses the benefits and potential drawbacks of selling a policy, and who might be able to sell a policy. Todd chimes in with the type of policyholder that may have the most to gain from selling their death benefit. Finally, they assess how life settlements have increased the flexibility and choices for both investors and policyholders.

If you are “too young” to sell your policy, you’ll also want to read this article for more options: “7 Ways to Save a Life Insurance Policy (even when you can’t afford the premiums)”

If you would like the opportunity for us to answer your question on the show or to be a guest on our show, be sure to keep sending us questions and reach out to us!

Show Notes:

[0:00] Prologue

[0:19] Intro

[0:46] Overview – What if You Don’t Want or Need Your Policy? What then?

[1:57] Understanding Life Settlements from Policyholder Perspective.

[5:18] Benefit of Selling Your Death Benefit

[6:36] Separating from a Viatical Policy

[7:19] What You Lose if You Sell

[8:45] Making the Most of Your Assets

[11:13] Leveraging Your Death Benefit

[14:06] How Life Settlements Build the Industry

[16:33] The Growth of the Settlement Market

[17:32] Summary

[18:02] Requirements for an Investor

[18:41] Non-correlated Investments

[19:18] Outro


Since 1911, selling a life insurance policy has been a federally-approved alternative for policyholders. Click To Tweet When a life insurance policy is sold, often the last name is still attached to it, but nothing else. Click To Tweet Life settlement fund investors can expect a 7-9 year time frame, low double-digit returns, and very little chance of loss of principal. Click To Tweet



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