Selling a life insurance policy for care cash now? - AgingCare.com

Selling a life insurance policy for care cash now?

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Dad has a life insurance policy and has been told he can sell it for cash to go towards his caregiving needs now.

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Kathie, this is called a viatical settlement. If you do a computer search there are lists of steps someone should take prior to such a move. Is it a permanent insurance policy (Whole life or Universal life for example. If so, there may be a cash value that can be borrowed.) I'd urge you to take a complete inventory of all assets for your loved one(s). There may be other options as well -- houses that aren't being used? Jewelry beyond what family would treasure. Good luck.
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Are you meaning to sell it at a good percentage of the death benefit? or for the surrender value? If he gets a good value for it and does not have anyone to depend on the death benefit, it can be a good thing. Selling it for the surrender value usually just recoups some or all of the money invested in it, so isn't useful except to get rid of paying premiums.
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