Life Insurance

**sugarandspice** · 05-24-2006, 03:55 PM

Anyone here have experience dealing with a good life insurance company? I.E. 20-25yr/400-500$ yearly or lower/500,000 coverage or higher accidental death included.

**swsop** · 06-15-2006, 06:01 PM

Policy Payoff

Selling an unwanted life insurance policy might be a better deal than
letting it lapse. Suppose that your uncle, age 75, has a heart
condition. He also has a $1 million life insurance policy he
purchased years ago; he no longer needs the policy but he still has
to make premium payments.

If your uncle lets the policy lapse, he'd receive the cash surrender
value. If that value is around $75,000, in this example, he might
wind up with around $60,000, after paying income tax.

As an alternative, your uncle could ask his life insurance agent to
offer this policy to buyers. A savvy agent will be able to get several
bids. A $1 million policy might be sold for $150,000. Even after
paying income tax on the gain (the sales proceeds in excess of
premiums paid) and paying a commission to the agent, your uncle
would wind up ahead of where he'd be if he simply cashed in his policy.