Life insurance is indispensable to help a family cope with unexpected and planned events. You are paying for one guarantee that the insured will be safe and have the necessary medical care. You will have some or other benefits depending on the type of insurance and its coverage.
Insurance policies have an expiration date, and homeowners often outlive the usefulness of their insurance. Some feel that the only possible alternatives are to let the policy expire or return it to the insurance company. The reality is that you can now turn your insurance into cash with a “life settlement” or even keep a portion of the policy without paying premiums in the future; this is the work of Coventry Direct.
What is Coventry Direct?
Coventry Direct is a subsidiary of Coventry First, whose objective is to convert the money in your policy into cash. This company is broadly responsible for buying customers’ insurance under an agreement to prevent it from lapsing without use. Based on this “life settlement,” the company allows policyholders to receive up to four times more than they would have received if they returned the insurance to the company.
Insurance policy owners either let the policy expire or prefer to return it, thinking this is the only solution. To solve this problem, Coventry Direct buys the policies and pays them out to its customers so they can enjoy the money. But if you are in doubt, the company also believes the insurance policies partially.
Can I sell my life insurance policy?
Yes, you can sell your insurance policy to Coventry Direct, but not all of them are eligible for this process. The company has a filter and outlines what the conditions are for you to be considered as an eligible seller of insurance policies:
- You are over 65: Younger owners of other insurance policies may also qualify if they meet other characteristics.
- You have had a drastic change in your health: If the homeowner has progressively declined in health since purchasing insurance
- You have a policy above $100,000: Most life insurance policies qualify, including universal life, whole life, variable life, survivorship, group life, and term life
If you meet any of these characteristics, you are eligible to sell your policy to Coventry Direct.
Why sell an insurance policy?
Like many people, buying life insurance means protecting your family or business. But over time, circumstances change, and there are some reasons to sell a policy. If you want to know why here is a list of the most frequent reasons:
- It is too expensive to pay for it
- The term policy will expire soon
- You need financial help to pay for medical care
- You want to increase your retirement income
- You need money to pay for unexpected expenses
- I don’t want more coverage
How does Coventry Direct work?
Life insurance is an asset, just like your home or vehicle. Like these assets, you can also sell them. This process is called “life settlement,” in which you receive a cash payment for the full amount of coverage your policy has. One of the biggest benefits is that Coventry Direct takes over future premiums and receives the benefit when the insured dies.
Selling the policy is more financially attractive than waiting for it to lapse or returning it to the insurance company. If you are interested in how to trade and cash in an insurance policy with Coventry Direct, here are the steps:
To sell an insurance policy, you must first determine whether or not you qualify. The company will ask for basic insurance policies and personal and health information about the policyholder. You can provide this information by calling the customer service center at 1-800-268-3687 to talk to the experts and receive advice.
Submitting and verifying your documents
In this second step, you authorize Coventry Direct to collect and review your medical records and information about your life insurance policy.
Receive an offer
After approving the first two steps, Coventry Direct will contact the client to notify them of the value of their policy. The company will allow you to receive the cash or keep part of the death benefit without assuming future premiums.
Collect the policy
The estimated time to collect on the insurance policy varies depending on the type of policy. It all depends on how long it takes to receive, send and evaluate the medical records, how long it takes for the client to sign and return the documents, and how quickly the insurance company transfers.
How much does Coventry Direct pay?
The amount you will receive for your policy is personal. That is, Coventry Direct will calculate to estimate the price you can afford to pay. This equation considers the size of your policy, the type of insurance, the premiums, and the applicant’s state of health.
We cannot give a figure or estimate how much you will receive. It is relative and will depend entirely on your personal and health information. To find out how much you will receive, ideally, you should discuss it with a financial advisor or ask a Coventry Direct agent for advice, but it is estimated that people receive four times the payout.
Does Coventry Direct buy term insurance?
Currently, Coventry Direct does not buy term life insurance. However, they are always open to offers from interested parties. They do not get involved mainly because these policies are temporary term coverage contracts.
If the policyholder dies while the policy is in force, the death benefit is paid to the next of kin, but if the policyholder does not die, the insurance expires, and no benefits are paid.