Updated: Jun 11
Term policies are great because you can generally get more coverage for cheaper. It's a great product to protect your mortgage because you can get a term for 30 years for the amount of the mortgage. When you pay off your mortgage, your term policy expires unless you convert it to a permanent life insurance product, which can be costly depending on your age.
But, what if you're approaching 70, for example, and that term policy will be too expensive to convert to a permanent policy? What if you could sell your expiring term policy for cash?
This is how it works. Depending on which carrier you have your term policy with, it can be converted to a permanent policy like an IUL. The purchaser will then become the owner and beneficiary of your policy and you get cash. You can take this cash and live off it for retirement, or re-invest into an annuity to grow it while you use it! Watch the video below for more details.