What does a secondary market mean in life insurance?
In the past, if you no longer needed a life insurance policy or you couldn’t afford it, you would drop it. You might receive a minimal amount of money from the insurance company based on the cash surrender value. With the new secondary market, you may be able to sell your policy. Assuming you’re over 70 years old, you might get 10 to 25 percent of the death benefit, depending on your age, current health and the amount of the policy. How does a policy qualify for the secondary market? It’s the person who qualifies, but the policy has to be on someone with the right age, the right health and the right premium. If the age is too young or the health is too good or the premium is too expensive, it won’t work. The barometers are ages 72 to 85, but the ideal age is 77 to 81. Health should be decent, and it should be a standard or preferred policy. How can you take advantage of the new secondary market? In many situations, people between 72 and 85 would purchase a policy. Under the law, they w
In the past, if you no longer needed a life insurance policy or you couldn’t afford it, you would drop it. You might receive a minimal amount of money from the insurance company based on the cash surrender value. With the new secondary market, you may be able to sell your policy. Assuming you’re over 70 years old, you might get 10 to 25 percent of the death benefit, depending on your age, current health and the amount of the policy. How does a policy qualify for the secondary market? It’s the person who qualifies, but the policy has to be on someone with the right age, the right health and the right premium. If the age is too young or the health is too good or the premium is too expensive, it won’t work. The barometers are ages 72 to 85, but the ideal age is 77 to 81. Health should be decent, and it should be a standard or preferred policy. How can you take advantage of the new secondary market? In many situations, people between 72 and 85 would purchase a policy. Under the law, they w
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