A. A cash value life insurance policy is like a "Swiss army knife", it can be used in many different ways, especially if your loved ones don't need the death benefit from your cash value policy.
You have 3 major options to consider, and within each of the 3 major options, you also have many choices to select from:
Option 1. Tap the Cash Value of the Policy
- Stop paying the premiums
- Take partial withdrawals
- Take policy loans
- Cash the entire policy
Option 2. Exchange the Cash Value Policy
- Convert into an income annuity
- Exchange to a long term care insurance policy
- Exchange to an insurance policy with long term care coverage
- Exchange to an insurance policy with long term care rider
Option 3. Sell the Cash Value Policy
- Sell your cash value policy to an investor
- Contract a life-settlement company directly to sell your policy
In our next blog post, we will discuss the various choices under option 1 - Tap the cash value of your policy.