Tap into your life

Tap Into Your Life Insurance Yes, you did buy that life insurance for a reason and you may have family members who would desperately need the proceeds in the event of your untimely demise. But if things are getting desperate now, you may be able to turn that policy into cash. And, no, you don't have to die to do it. If it is "whole" or "universal" life (a type of insurance you buy to last your "whole" life and your heirs get the payout even if you live to 104), you pay higher premiums, but the insurance has a "cash value" that you can tap any time. All you have to do is call your life insurance company to access the money. It won't be much if you've only had the policy a few years, but at least you won't be paying premiums anymore. This is an option that you should only take if you are still fairly young and healthy, really desperate for cash and can't afford the premiums anyway. Depending on how long you are expected to live, you can sell your policy for between 30% and 80% of the face value of your policy -- an amount that will be much higher than the cash value of a whole or universal life policy. If you are interested, you can read some general information on viaticals from the National Association of Insurance Commissioners and peruse information on the website of the Life Insurance Settlement Association (LISA), a trade association for this industry that also provides lists of viatical settlement companies by state). General rules are to get quotes from several investment companies and watch out for high commissions.

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