1. 11498 POINTS
    Jason Goldenzweig
    Co-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, Nevada
    Term life insurance policies cannot be sold. The process of selling a life insurance policy is known as a viatical settlment and can only be done on permanent insurance policies (universal life and whole life).

    Please note, you should consult with your agent before selling any life insurance policy to another party to review the after effect/consequences, tax issues, etc. of this type of sale. If you need any assistance with your coverage, please don't hesitate to contact me.

    I hope the information is helpful - thanks very much.
    Answered on July 30, 2014
  2. 47 POINTS
    Kevin Haney
    A.S.K. Benefit Solutions, New Jersey
    There are investors who specialize in viatical settlements. Viatical settlement is the sale of a life insurance policy to a third party. Viatical settlements started as a way for people with life threatening conditions to get money quickly.

    Check your policy for an accelerated death benefit which may advance the policy death benefit if declared terminally ill. Term life insurance has no cash value, which is why it is not sold.
    Answered on July 30, 2014
  3. 63333 POINTS
    Peggy Mace
    Most of the U.S.
    You would need to start by contacting a life insurance agent who can assist you in being evaluated for a life settlement. I say contact an insurance agent because he/she may have other options to help you reach your goals or free up some extra cash (e.g. reducing the face amount).

    If a life settlement does appear to be the best choice, you will be evaluated for life expectancy, and your policy will be evaluated for features that make it desirable to viatical investors. Life settlements work the opposite of life insurance: the shorter it appears you have left to live, the more money your policy is potentially worth to investors. Term policy has no cash value, so investors will only be interested in a policy that has more years left than you are expected to live, and/or is able to be converted to a permanent policy.
    Answered on July 30, 2014
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