All Life Insurance Tips

if i have a whole life insurance policy with premiums that go up every year,can i sell it to someone else ?

who would pick up the payments and then cash it in when i die

Public Comments

1. Whoever owns the policy, has to make the payments, and gets to pick who gets the money when you die. You might be able to transfer ownership of the policy, you'll have to call the company and ask. But you're not going to make "big bucks" doing this - the return on investment, assuming you're not 90 with one foot in the door, is pretty crappy. No one is going to wait 20 years, paying your increasing premiums every year, until you kick off. The numbers just don't work. Your whole life policy is probably worth, well, whatever the cash value is.
2. The purpose of a whole life policy is that the premiums don't go up. But, yes you can sell a plan to someone else if you really want to.
3. If your payments are going up every year, the policy was not properly funded or the cash value ran out and you have to pick up the tab. If payments are that big of a problem, replace it with a level term product. At least then you can tell when the payments will go up and have time to take action accordingly.
4. If it's "whole life", no. The life settlement companies I know only want to buy "universal life" policies and related products (including convertible term). Some people use these terms interchangeably, but buyers of insurance policies make a distinction. Also, you would have to be at least age 65 with a significant change in health since you took it out, at least age 70 in decent but not stupendous health, or on your death bed with no "accelerated death benefit" in your policy. Long story short, maybe. Just be aware of the downside of this type of transaction before you commit, and look for an institutional buyer instead of a person.