I’m a senior in college and am taking a personal finance course as part of my school’s prerequisites to graduate. My professor recently stressed the importance of taking out a life insurance policy when she spoke about steps to take once each of us get our first “real job” post graduation. When I mentioned this to my grandfather, he said that he sold his life insurance policy, which isn’t something I knew you could do. How much can you get for selling your life insurance policy, and why would you want to?

While selling a life insurance policy seems a little odd at first thought, there are actually many reasons why you may be interested in selling your policy. For starters, not everyone call sell their life insurance policy. In order to do so, you must meet specific criteria related to your age or medical status. Common scenarios that qualify you to sell your life insurance policy include diagnosis with a terminal illness or if you are seventy years old or more. In addition to these two qualifications, in order to sell your life insurance policy, the policy must be valued at at least $100,000.

There are a few reasons you may want to sell your policy, and thanks to companies like Sell My Life Insurance Policy, it’s easy to get a lump sum for your policy. Some people sell their life insurance policy after they’ve retired and accumulated enough wealth to cash flow any medical concerns as they reach old age. Financial independence and good health are two great reasons that it may make sense to liquidate your life insurance policy, and are perfectly normal scenarios to find yourself in if you take care of your health as you age. Other people sell their life insurance policies to give them an extra source of income in retirement or to cut down on monthly premiums eating into their annual budget. Instead of ending contributions or losing out on your policy, it may make more sense to cash your life insurance policy out in order to have money on hand. One additional reason you may be interested in selling your life insurance policy is to pay for expensive medical treatments, or if you no longer have any dependents relying on the money your policy would provide.

When considering whether or not you want to sell your life insurance policy, it’s a good idea to understand how much money you’ll receive if you decide to sell. Eligible policies generally receive a percentage of the face value of the policy. The face value of your life insurance policy is the amount that would be paid out in the event of your death, and common portions you might receive range from 25 percent to around 50 percent. There are a variety of factors that may affect what sort of percentage of your policy’s face value you’re offered, and older individuals usually receive a higher offer.

Thanks to websites like Sell My Life Insurance Policy, selling a life insurance policy is simple. Most individuals can fill out an online form with a few simple questions in order to see if their policy is eligible to be sold for a lump sum. Once the company analyzes your situation and whether or not you qualify, you’ll be contacted by an agent who is able to answer any questions you may have about the process and get you set up to receive payment. Once your life settlement is processed, you’ll receive your money very quickly, although it’s important to note that you and your beneficiaries will no longer have any right to your policy’s settlement if you pass away.

For aging Americans, selling a life insurance policy can be a great way to get some extra money and eliminate monthly payments. If your situation seems like one that would qualify you to obtain a life settlement, it never hurts to speak with a representative and learn more about what your policy might be worth.