Who Can Benefit
From Trading In
A Policy?
Though the option to trade in a life insurance policy for payment is available to all policy holders aged 65 & older, trading in a policy will only be advantageous in some circumstances.
The policy holders who can benefit from trading in a policy are those individuals who find themselves in one of the following three situations:
Individuals Struggling To Afford Policy Premiums
Of the 5% of Seniors who drop a life insurance policy each year, the majority of them do so for financial reasons.
Whether it’s due to an increase in premiums, a decrease in income after retirement, or to new expenses overwhelming a fixed income, many Seniors are no longer able to afford the cost of maintaining a policy.
Previously, the only option available to someone struggling to pay premiums was to drop the policy, forfeiting the beneficiary payout and receiving a limited salvage fee from the insurance company as compensation.
Seniors now have the option to trade in any policy they can no longer afford, redeeming it for a lump sum payment significantly higher than the salvage fee they would receive if it were dropped.
With either option, the policy holder will have to forfeit the policy. But by trading it in, he or she gains much needed income in return for doing so.
Individuals With A Policy That Is No Longer Needed
As circumstances change throughout life, many older Americans find themselves paying for a policy that is no longer relevant or worth the cost of maintaining.
Previously, the only option available to a policy holder with an unwanted policy was to drop it, receiving a limited salvage fee from the insurance company as compensation.
Individuals 65 & Older now have the option to trade in any unwanted policy for a lump sum payment. This enables Seniors whose circumstances have changed to redeem substantial income from a policy they’ve paid into for years or decades, but no longer require.
There are many reasons why a previously needed policy might no longer be necessary. Changes in family circumstances such as divorce, the death of a spouse, or the independence of children can curtail the need for a policy. Selling or retiring from a company can result in unneeded business policies, or group coverage that is no longer applicable. And a change in assets, such as selling a covered property or a decrease in tax burdens, can leave a policy holder paying for a policy that no longer has a purpose.
Regardless of the reason or the type of policy, any Senior aged 65 or older with an unwanted or irrelevant policy now has the option to trade it in for a lump sum payment.
Individuals In Need Of Income To Cover Substantial Expenses
Seniors often face financial burdens that can overwhelm any budget, such as medical costs, assisted living/ in-home care, or living expenses after retirement.
The option to trade in a policy for a lump sum payment gives Seniors access to a financial resource previously unavailable to them.
Individuals 65 & Older are now able to “cash-in” the value of a life insurance policy by trading it in for money which can cover immediate or future financial needs. The payment from a policy trade-in can provide financial security for Seniors struggling to pay for medical treatment, care facilities, housing, day to day expenses, or other financial needs.
There are no restrictions on how money from a trade-in can be used, and all types of life insurance policies are eligible, making a policy trade-in a viable option for any policy holder facing substantial financial burdens.
How To Trade In A Policy
Advocates are able to provide free assistance to any Senior who would like to trade in a policy. If you would like to do so, or you have questions about policy trade-ins, the first step is to speak with an advocate over the phone or email to verify that your policy is eligible and discuss how the process works. The advocate can then connect you with the appropriate licensed specialist for your policy. Advocates do not require, and will not ask for, sensitive personal information while assisting you.
Learn More
about the trade-in process, the types of eligible policies, and the Supreme Court decision granting Seniors the option to trade in a policy on our Home Page.
Learn More
about lump sum payments made to policy holders when trading in a policy.
Learn More
about the Initiative’s aims- and the outreach efforts & assistance offered by advocates
Would You Like More Information?
Advocates are committed to sharing information about policy trade-ins with fellow Seniors. If you have questions or would like to know more, please feel free to reach out to an advocate over the phone, through email, or via the contact form on the "Learn More" page.
Copyright 2023- Trade-In Awareness Initiative
Contact:
1-866-270-2488
info@seniorsrights.org