How do I sell this life insurance policy without getting swindled?
April 23, 2009 12:57 PM Subscribe
What are/how do I find reputable firms who will buy my father's life insurance policy? How can I determine what a fair price would be? Is there anything special I need to know before I proceed?
(Asking on behalf of a friend) "My father suffers from a degenerative disease which is sure to take his life within the next five years if not sooner. He has a substantial life insurance policy, but in order to continue to make payments on it for the rest of that time, we would be forced to sell our house. The possibility of selling his life insurance to an external firm has been suggested to us -- as I understand it, based on the payout value of the policy, the required monthly payments, and the expected time until payout, a company would pay him a lump sum now and take over the payments.
Has anyone had experience with this in the past? It seems like sort of a shady/loan-shark type transaction so I'm very anxious about finding the most reputable people to deal with if we decide to go forward with this. I'd greatly appreciate any advice anyone can offer. If I need to provide any other details, please let me know and I'll post more." (Well, I'll post more, but you know)
(Asking on behalf of a friend) "My father suffers from a degenerative disease which is sure to take his life within the next five years if not sooner. He has a substantial life insurance policy, but in order to continue to make payments on it for the rest of that time, we would be forced to sell our house. The possibility of selling his life insurance to an external firm has been suggested to us -- as I understand it, based on the payout value of the policy, the required monthly payments, and the expected time until payout, a company would pay him a lump sum now and take over the payments.
Has anyone had experience with this in the past? It seems like sort of a shady/loan-shark type transaction so I'm very anxious about finding the most reputable people to deal with if we decide to go forward with this. I'd greatly appreciate any advice anyone can offer. If I need to provide any other details, please let me know and I'll post more." (Well, I'll post more, but you know)
You may also be able to borrow from the policy to pay the premiums.
posted by goingonit at 1:49 PM on April 23, 2009
posted by goingonit at 1:49 PM on April 23, 2009
Best answer: Every state has an Attorney General's Office that has some sort of Consumer Affairs office. Every state has an office for insurance regulation. Start there. The term for this is viatical settlement, which will help you search.
posted by theora55 at 2:27 PM on April 23, 2009
posted by theora55 at 2:27 PM on April 23, 2009
Go here to find an attorney who would be able to assist.
posted by yclipse at 3:23 PM on April 23, 2009
posted by yclipse at 3:23 PM on April 23, 2009
This thread is closed to new comments.
posted by COD at 1:19 PM on April 23, 2009