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WITHDRAW CASH FROM YOUR LIFE INSURANCE POLICY
Your life insurance policy is more than just a financial safety net for your loved ones—it can also serve as an asset that can provide value during your lifetime. If you’re wondering, “Can I generate cash from my life insurance policy?” The answer is “yes,” and the options – see below - depend on the type of policy you have. At Welcome Funds, we are here to help you understand your choices and maximize the value of your policy.
1. Withdraw Cash Value From Your Life Insurance Policy
If you have a permanent life insurance policy like Whole Life or Universal Life, it likely includes a cash value component that grows over time. You may be able to withdraw a portion of this cash value directly.
- Benefits: Tax-free withdrawals up to the amount of premiums you have paid.
- Considerations: Withdrawals reduce the death benefit, which impacts your beneficiaries.
2. Borrow Against Your Life Insurance Policy
Life insurance loans allow you to borrow money using your policy’s accumulated cash value as collateral.
- Benefits: No credit checks, competitive interest rates, and flexible repayment terms.
- Considerations: Unpaid loans and accrued interest reduce the death benefit and cash value, and the policy could lapse if insufficient premiums are paid.
3. Surrender Your Life Insurance Policy
You can cancel your policy and receive its surrender value, which is typically the cash value minus any fees or charges.
- Benefits: Immediate access to your policy’s cash value.
- Considerations: The surrender value is less than the death benefit, and surrendering your policy terminates coverage.
4. Sell Your Policy Through a Life Settlement
For many policyholders, a life settlement is a more financially impactful and flexible option than the acts of withdrawing, borrowing or surrendering as discussed above. A life settlement is the sale of your life insurance policy to a licensed buyer (life settlement provider) in exchange for a lump sum, which is often much higher than the surrender value but less than the death benefit.
The buyer takes over premium payments and becomes the beneficiary of the policy.
Benefits of a Life Settlement:
- Higher Payout: Often provides 4 to 11 times more than the cash surrender value.
- Eliminates Premium Payments: You no longer need to pay ongoing premiums.
- Unrestricted Cash Use: Use the proceeds to offset medical expenses and accumulated debt or for any other purpose.
- Regulated Process: Transactions are overseen by state regulations to protect policyholders and consumers.
Why Consider a Life Settlement?
Life settlements are an ideal option if:
- You no longer need or can afford your life insurance policy.
- Your premiums have become a financial burden.
- You’re seeking additional revenue streams to fund your retirement years.
At Welcome Funds, we specialize in helping policyholders maximize the value of their life insurance policies through our Life Settlement Auction Platform. This approach brings qualified policies to a competitive marketplace, allowing licensed buyers to bid against one another and drive up the purchase price.
Welcome Funds: Your Trusted Life Settlement Broker
At Welcome Funds, we have a duty to both legally and ethically act in your best interest. We work exclusively for policyholders — not buyers/life settlement providers, funds, or any money sources — to ensure that you receive a high payout for your policy.
What Sets Welcome Funds Apart?
- Fiduciary Duty: We always prioritize your financial goals.
- Auction Platform: Competitive bidding maximizes your policy’s value.
- Transparency: We provide clear, honest guidance every step of the way.
- Experience: With over 25 years in the industry, we’ve helped thousands of clients achieve their financial goals.
How to Get Started
- Free Consultation: Contact us for a confidential, no-obligation review of your policy.
- Policy Evaluation: We will determine if your policy qualifies for a life settlement and estimate its potential value.
- Your Choice: Upon receiving the policy estimation, you decide whether to move forward more formally with a potential life settlement by completing our initial documentation and authorizations.
Maximize the Value of Your Life Insurance Policy Today
Whether you are exploring withdrawal options or considering selling your policy, Welcome Funds can help you reach an informed financial decision. Contact us today to learn more about life settlements and discover how much your policy is worth.
Call us at 877.227.4484 or visit www.welcomefunds.com.
LIFE SETTLEMENT BLOG
Direct Life Settlement Buyers vs. Welcome Funds – Advisor Beware!
Posted: by John Welcom
Welcome Funds has the privilege of working with numerous financial advisors and wealth managers – and have done so for two decades – some who exclusively focus on servicing high net worth clients. One such advisor who is active in the life settlement market — and already understands the value he can create for his clients — had historically negotiated directly himself with two or three leading buyers of life insurance policies. He thought that simply engaging with mor...
How to Sell Your Life Insurance Policy for $4,743,000 Instead of $275,485?
Posted: by John Welcom
Mr. Williams purchased $10 Million in life insurance coverage in 2001 to provide his family with financial security. Over time, his financial priorities changed: his wife passed away, his children became financially independent, financial burdens arose and the estate tax exemption increased substantially.
Suitability of Life Settlements
Posted: by John Welcom
Traditionally, estate planning advisors counsel their high net worth clients to obtain life insurance policies with large death benefits. The strategy is simple: create a vehicle for heirs to receive tax-free income at the time of an insured’s passing so sufficient funds are available to pay large estate tax bills when assets are inherited.
What is the Most Suitable Exit Strategy for Life Insurance?
Posted: by John Welcom
All eyes in the life insurance agency and the financial advisory world have been on New York, where in the summer of 2019, the New York State Supreme Court paved the way for implementation of Insurance Regulation 187. This rule imposes a new standard for agents and brokers when issuing a recommendation to a client regarding an annuity or life insurance product.
How to Get the Highest Life Settlement Offer
Posted: by John Welcom
When you decide to sell a valuable personal asset, you usually want to obtain the highest purchase price for that property. It is sound business sense. However, how do you truly know when you have reached the point of accepting and securing the most desirable offer?
Understanding the Fair Market Value of a Life Insurance Policy
Posted: by John Welcom
When a professional advisor identifies a life insurance policy that a client no longer needs or wishes to maintain, he should ask, as standard protocol, whether that policy may have value in the secondary market. If so, the client may be able to sell the policy in a life settlement transaction, enabling him to receive a higher cash payout than he otherwise would obtain by lapsing or surrendering the policy back to the insurance company.
The Power of a Life Settlement Auction
Posted: by John Welcom
Professional advisors with clients who no longer need or wish to maintain a life insurance policy have options when exploring the secondary market. Many advisors prudently rely on a licensed life settlement broker to assist them in the sale of the policy and with all aspects of the transaction. However, there is still a large number of professionals persuaded to work directly with only one buyer, called a life settlement provider.
Rebuttals to the “Direct Buyer” Model for Life Settlements
Posted: by John Welcom
Most professional advisors who explore the potential sale of an unwanted life insurance policy on behalf of their clients will rely on the assistance of a licensed life settlement broker. Life settlement brokers represent the policy owner in the transaction and have a duty to act in their best interests. Most notably, the broker’s and client’s goal is aligned: to sell the policy for the highest price possible.
Carrier Resistance To Life Settlements: Clients Need To Know They Can Sell Their Policies
Posted: by John Welcom
Consumers who sell their life insurance policies in the life settlement market receive as much as seven times more money than they would have received by surrendering their policies back to the insurance companies. Seven times! However, an estimated 9 out of 10 policies are allowed to lapse before paying a claim, according to the Life Insurance...
The Danger of Trying to “Time the Market” for Life Settlements
Posted: by John Welcom
Most investors in the stock market understand the danger of “market timing” — trying to choose the right day to buy a stock when the price is low and sell it when the price is high.
