While this was a much talked about topic in the past, this service is no longer available in Australia.
The service was once delivered onto the Australian Life Insurance market as a result of increased competition in the past. This was due to more consolidation, more companies offering life insurance, and more online term life insurance comparison websites.
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What is selling your term life insurance policy all about?
Retirees in Australia used to have the option of selling their term life insurance policy for a percentage of the original value of the policy. In the past, select companies once paid up to 15 per cent of the value of the term life insurance policy.
Once sold, these companies owned the term life insurance policy and were responsible for paying the life insurance premiums until the seller passed away. After the seller passed away, these companies received the life insurance benefits.
There was no limitation on how the resulting money could be spent, so reserch had to be undertaken before any rash decisions over such a large sum of money were made.
Questions to ask when considering selling your term life insurance policy
When this service used to be available, there were a few questions that clients were asked to take into consideration:
- What is the current cost of your premiums?
- Will you still receive a portion of the benefit payment on death?
- Why do you feel you no longer need cover?
- What is the full value of your term life insurance policy?
- How much will be paid to you if you decide to sell your term life insurance policy?
- Will any of your loved ones benefit from your term life insurance policy benefit payment when you pass away?
- Do you have enough funds to pay for funeral costs and any outstanding debts when you pass away?
- What is your life expectancy?
Get advice on your term life insurance policy
Please be aware that selling your term life insurance policy is no longer an option in Australia. However having said that, an insurance specialist can offer advice on your life insurance policy, and compare policies to ensure your premiums are still competitive.
Being cautious, doing your research and getting additional financial advice can help you find the right term life insurance policy. Get free term Life Insurance Quotes from ComparingExpert today!