Lump Sum Payments
When trading in a life insurance policy, the policy holder receives a one-time, lump sum payment in exchange for forfeiting ownership of the policy. This money is paid in full as soon as the policy trade-in is finalized.
How Much Is The Payment From A Policy Trade-In?
The amount of money received for trading in a policy varies widely, dependent on the type and value of the policy and the policy holder’s circumstances. The total will be less than what the beneficiary payout would have been, but more than any salvage fee offered by the insurance company.
Before deciding to move forward, a licensed specialist will be able to give an estimate of the expected payment and will work on your behalf to facilitate the largest possible payment for your policy. The trade-in will not be finalized until you are satisfied with the lump sum payment amount.
How Can The Money from a Lump Sum Payment Be Used?
There are no restrictions on how payment from a policy trade-in can be used.
Seniors who have received payments commonly use the money to cover:
Health Care/ Medical Treatments
Assisted Living Facilities/ At-Home Care
Living Expenses Throughout Retirement
Debt Repayment
Funding Investments
Education Tuition
Gifting To Charitable Organizations
How Long Does It Take To Receive Payment?
Though payment is received as soon as the trade-in has been finalized, the trade-in process, from start to finish, takes anywhere from two weeks to six months. Most policy trade-ins take between one and three months to be completed.
The length of processing time depends on the type of policy and the policy holder’s circumstances. The licensed specialist facilitating your trade-in will be able to give an initial estimate of the time your trade-in will take and keep you updated as it progresses.
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 who can benefit from 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