How much is my term life insurance policy worth if I sell it?
Asked by: Bennett Koelpin | Last update: November 15, 2025Score: 4.2/5 (18 votes)
How much can I sell my term life insurance policy for?
Since a term life insurance policy doesn't come with a cash value component, it's not possible to cash it out. This policy solely includes a death benefit that your beneficiaries may receive if you die before the end of the policy's term.
How much is a $100,000 life insurance policy worth to sell?
The death benefit value typically varies between 10 and 25 percent. This means a $100,000 policy will provide you with up to $25,000. Factors affecting how much you will get for selling your life insurance policy include life expectancy, its cash value, and the premium amount.
What is the cash value of my term life insurance?
While term life insurance can be a useful policy for many people, it doesn't build cash value. With this type of policy, you pay for a potential death benefit payout that your beneficiaries will receive if you pass away before the end of its term.
What is the fair market value of a term life insurance policy?
For a life insurance policy on which no further payments are to be made (the regulations refer to a single premium policy or a paid-up policy), the fair market value of the policy is the amount the life insurance company would charge for a single premium contract of the same specified amount on the life of a person the ...
Can I sell My Life Insurance Policy for CASH?
What is the term life insurance market worth?
The global term life insurance market was valued at $1.1 trillion in 2023, is projected to reach $2.4 trillion by 2032, growing at a CAGR of 8.7% from 2024 to 2032.
Why is there no cash value on term life insurance?
There's typically no term life insurance cash value since term life policies are designed to last for a limited period. However, if you want cash value on a new term life policy, ask your insurer if it's possible.
Can I cash out my term life insurance?
Term life is designed to cover you for a specified period (say 10, 15 or 20 years) and then end. Because the number of years it covers are limited, it generally costs less than whole life policies. But term life policies typically don't build cash value. So, you can't cash out term life insurance.
How long does it take for term life insurance to build cash value?
Term life policies do not accumulate cash value. You can also choose whether the cash value grows at a defined steady rate (like a CD) or is invested in securities (like mutual funds) and grows with the market.
What is the cash value of a $25,000 life insurance policy?
Examples of Cash Value Life Insurance
An example is a cash value life insurance policy with a $25,000 death benefit. Assuming you don't take out a loan or withdraw, the cash value accumulates to $5,000. After the policyholder's death, the insurance company would pay out the full death benefit, which would be $25,000.
What is the cash value of a $100,000 term life insurance policy?
The premiums for term policies are typically lower, making them an affordable choice for many individuals. So, a $100,000 term life insurance policy might have lower premiums compared to a permanent policy. However, this type of policy doesn't have a cash value component.
Is selling your life insurance policy a good idea?
Selling your life insurance policy may be a good idea in some cases, such as if you need the money or if the reasons for paying the premiums no longer exist. Still, it's not something to rush into without serious consideration.
How much commission do you get for selling life insurance?
Typically, a life insurance agent receives anywhere from 30% to 90% of the amount paid for a policy (also known as the premium) by the client in the first year. In later years, the agent may receive anywhere from 3% to 10% of each year's premium, also known as "renewals" or "trailing commissions."
Can you make money selling term life insurance?
As a life insurance agent or broker, the most common way for you to earn an income is through commissions. Generally, you can receive front-loaded commissions of 40% to up to 115% of the policy's first-year premiums. The rates for renewals, however, fall steeply to about 1% or 2%.
Do you get money back from term life insurance?
Under a basic term insurance plan, you do not get money-back at the end of the life insurance term. On the other hand, under a money-back term insurance plan, you get assured returns at the end of the policy term.
What are the tax consequences of cashing in a life insurance policy?
Cashing out your policy
You're able to withdraw up to the amount of the total premiums you've paid into the policy without paying taxes. But if you withdraw on any gains, such as dividends, you can expect them to be taxed as ordinary income.
Can you borrow from term life insurance?
Life insurance loans are only available on permanent life insurance policies — such as whole life and universal life — that have a cash value component. You likely can't borrow against a term life insurance policy since it probably doesn't have cash value. Learn more about term vs. whole life insurance.
What life insurance builds the most cash value?
You might prefer the benefits of whole life insurance if you are looking for a policy with long-term coverage, can build cash value and — with certain policies — may earn dividends.
Does term life insurance offer a cash benefit?
Term life insurance is a life insurance policy that pays cash benefits to help your loved ones in the event of your death. Term life insurance policies from Golden Rule Insurance Company also feature an optional Critical Illness Benefit1 that pays cash benefits upon diagnosis of a qualifying illness.
Is my term life insurance worth anything?
The bad news is that term life insurance has no cash value. When your policy ends, you don't receive any money. On the bright side, it's less expensive than permanent insurance. Due to the savings on premiums, you may end up ahead financially with term coverage despite the lack of a cash value.
What is the cash value of a $10,000 whole life insurance policy?
Most whole life insurance policies mature at 121 years, although some mature at 100 years. Say, for example, that you purchase an insurance policy with a face value of $10,000. Once the policy matures, the cash value of the policy should equal $10,000.
How can I sell my term life insurance policy?
You can sell a term life insurance policy for cash through a life settlement, but your policy will usually have much more value on the market if it is the type that can be converted to a whole or universal life policy. The provision in a term life policy that allows for this change is called a conversion rider.
What is the main disadvantage of term life insurance?
Cons: Drawbacks of Term Life Insurance Policies
Here are some of the key disadvantages: Temporary Coverage: Term life insurance covers a specific period (e.g., 10, 20, or 30 years). Once the term ends, the policy expires, and coverage stops.
What happens if you outlive your term life insurance?
No, with a standard term life insurance policy, you won't be receive anything back if you outlive your life insurance. So, what happens at the end of your term life insurance? Your life insurance will simply expire and you can either take out a new policy or look into other types of financial protection.
Does term life insurance have a surrender value?
Permanent life insurance offers cash surrender value if you cash in your policy before the maturity date; term life insurance policies do not. Cash surrender value equals your policy's cash value, minus any surrender fees.