If you're in need of quick cash, you can sell your life insurance policy to a stranger. This only works when you have a permanent policy that has developed cash value over the years--term policies are not eligible for sale. Selling your life insurance policy to someone else essentially means that when you die, they will receive the payment that would have been awarded to your family or beneficiaries. Although it is not always advisable to do so, the secondary market is structured to enable this kind of transaction.
Step 1
Determine whether you are nearing your death bed and qualify for an accelerated death benefit. To do this, you must have less than 24 months to live according to a doctor's estimation and have the accelerated death benefit enabled in your life insurance policy.
Step 2
Contact your life insurance agent and withdraw all money allowed under the accelerated death benefit. This usually equals around 50 to 80 percent of the policy's total value. Then ask your agent to put the remaining life insurance policy funds up for sale on the secondary market.
Step 3
Pursue a viatical settlement, which is the option for those who do not qualify for accelerated death benefits. Similar to the procedure for obtaining accelerated death benefits, contact your life insurance agent and request to begin the process.
Step 4
Fill out any forms required to authorize the sale of your life insurance policy. You will have to fill out an authorization form and a form detailing the financial aspects of the life insurance policy, including the premium to be paid and amount to be earned from life insurance.
Step 5
Wait for the insurance agent to sell the insurance policy, then confirm the sale (if required under the terms of your policy) and collect your payment.
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