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What banks buyout whole life insurance plans?

I have a $2mil Whole life plan. And pay around $500 a month. I am middle aged. And am looking for a bank that buys out the whole life and i write over the ending payment to them while they pay for the coverage. It is out there and it goes on alot. But just can't find a bank that openly does it. Also, what are the terms? My plan is pretty new. Does that matter? It just means a lower payout to me right?

Public Comments

1. BoA will do it
2. Banks don't do this; life settlement companies and private placement brokers do. Generally, in order to make this feasible, you have to have a current life expectancy of no more than about 15 years. Your settlement amount will typically be about three to four times the surrender value. If you don't fit the profile, you always have the option of surrendering the policy, but you're probably better off withdrawing cash value and keeping the policy in force until a later date. You can take direct withdrawals up to the amount of premium paid in tax free; from there, you withdraw in the form of loans which you do not have to pay back. Of course, your policy will have limits to how much of the cash value is accessible. The company or your agent will be able to help you determine this.
3. It's usually not a good deal. You get very little for the policy. See if you can withdraw dividends or take a loan against it instead. Call your insurance agent or company for some non-forfiture options. Maybe you can take a "reduced paid up policy" or something else. Ask for your options. ****Your plan being "pretty new" is an extremely important fact. That probly means there is no cash value in the policy nad no one will be willing to buy it from you. Your options are limited. Ask your agent or company about if you stop making payments how long will the policy last on its own? That is if your having problems making the payments. Or, you may want to cut your losses while your ahead and figure out a new plan. You might want to invest that money instead. You really need to sit down with someone or talk to your agent or company. And, also sit down or talk to someone about investing in a retirement plan that may also be tax deductible.
4. No banks buy this out. None would do this, under your terms, because as soon as you write out the 'ending payment" to them, you could turn around and change it to someone else the next day. It matters that your policy is new - because it has NO cash value. You can probably find a buyer, for about 60% of the CASH VALUE of your policy - not the payout, the cash value. Unless you're terminally ill, and have less than a year to live - in which case your policy is worth about 10% of the payout, if you sell it. Your policy, as you describe it, can't make any money for anyone - after all, the only reason someone would buy it, would be for an investment - a way to make money (and this practice is illegal in quite a few states). Life insurance is basically a bet on if you're going to live or die, and how long from now that will happen. The odds will ALWAYS favor the house - that's your premium charge. Sorry. You're not going to be able to sell this.