Today’s economy can make it difficult for many people to be able to make it financially and typically this is even more true for the elderly as their incomes tend to be lower after they retire and live on government funding such as Social Security and retirement.  For some, the idea of selling their life insurance policy for one large lump sum may seem like the answer to their prayers.  With a large amount of money they may be able to clear all of their debt while still being able to make investments and other financial advantages.

The drawback to selling a life insurance policy may be that the beneficiary will be whoever has bought the policy.  When someone buys an insurance policy they typically become the beneficiary and it will be up to them to make sure that the premiums are paid regularly and on time until the death of the previous owner.  If you sell your life insurance policy then you will not have a beneficiary to leave anything to in the event of your death.

However, you may be able to also purchase a term life policy <hyperlink: article> after you sell your original life insurance so that you will still have coverage for your loved ones after you have passed.  If you receive a large enough selling amount for your life insurance, you may be able to use the money to get a less expensive life insurance policy as well as make investments and possibly even pay off your home so that when you pass your beneficiaries will be able to utilize the profits and investments.