Content Overview 
- Summary
- What If I Outlive The Time Period Estimated By The Purchaser?
- How Do I Assure Confidentiality If I Sell My Life Insurance?
- What If My Life Insurance Includes A Double Indemnity Provision In The Event Of Death By Accident?
- What If My Policy Includes The Right To Increase The Death Benefit?
- Will Anyone Contact My Beneficiary If I Sell My Life Insurance?
- Do I Have To Sell All Of My Policy Or Can I Sell Part Of It?
- Should I Remove Any Cash From My Life Insurance Policy Prior To A Sale?
- What If I Have A Problem With A Purchasing Company?
Sale Of A Life Insurance Policy - Frequently Asked Questions
Will Anyone Contact My Beneficiary If I Sell My Life Insurance?
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Most purchasing companies require that each primary beneficiary sign a release waiving any claims to the proceeds of the life insurance policy. Purchasers request the release to reduce their risk of being sued by your beneficiaries.
If you do not want your beneficiary contacted about your policy sale, consider changing your beneficiary to someone you would not mind asking to sign a release. Before you choose that person, remember that if you die before the sale is completed, that person will actually receive the proceeds of your policy.
An alternative is to name your own estate as the beneficiary. You could then sign the release on behalf of the estate. If you have a valid Will, you can make the change at any time knowing that the insurance proceeds will be paid to the people you care about should you die before the sale is complete because the proceeds will pass as directed in your Will.
If you do not have a Will and make the proceeds payable to your estate, you run the risk that if you die, the money will be paid as directed by the laws of your estate in which you reside, rather than as you would have wished.
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