How To Make Money From Life Insurance Policies
At The Annuity Expert, we’re an independent life insurance agency. Below are practical, legitimate ways a policyholder can create, unlock, or protect value with life insurance—plus when each strategy fits, when it doesn’t, and how to compare quotes smartly.
Sell Your Policy
Selling life insurance as an investment is a popular way to make money. You can sell whole life insurance, universal life insurance, or term life insurance. These are called life settlements.
- Whole Life Insurance: Whole life insurance policies have a cash value that increases over time.
- Universal Life Insurance: Universal life insurance policies have both cash value and death benefit protection.
- Term Life Insurance: Term life insurance only has death benefit protection.
When you sell life insurance, you earn a commission. The size of the commission depends on the policy type and the company you sell it to.
Using Life Insurance for Retirement
Life insurance policies, especially universal and whole life insurance, can serve as effective retirement vehicles.
- Policy Loans: Alternatively, you can borrow against your policy’s cash value at a lower interest rate than traditional loans. This can be used for various purposes, such as purchasing a car or taking a vacation.
- Cash Value Growth: By purchasing a policy and allowing the cash value to grow, you can use these funds to supplement your income during retirement.
Pay Estate Taxes
Life insurance can also help cover final expenses and estate taxes, ensuring your beneficiaries are not burdened with these costs.
- Tax-Free Death Benefit: The death benefit from a life insurance policy is typically paid to your beneficiaries tax-free. This can be used to pay for funeral costs, debts, and estate taxes, providing peace of mind for your loved ones.
Access Living Benefits (Accelerated Death Benefits) For Cash When You Need It Most
- Many modern policies include accelerated benefit riders for chronic, critical, or terminal illness—letting you access part of the death benefit while alive.
- If you meet the rider’s criteria, you can take an advance from the death benefit (reducing what’s paid later).
Use A Return-Of-Premium (ROP) Term For A Guaranteed Refund
- ROP term returns 100% of base premiums at the end of the term if you outlive it.
- How it works: Pay more than the standard term; at the end, receive premiums back tax-free (in most cases) if you didn’t pass away.
Ready To Compare Options And Quotes?
Have us run the numbers and show side-by-side outcomes before you act. Schedule a quick call with The Annuity Expert to compare life insurance quotes and alternatives, and pick the option that leaves you—and your family—best off.
Book A Free Consultation
Get help from a licensed financial professional. This service is free of charge.
Let Us Answer Your Questions
Not quite ready for a meeting, but you have a question that needs answering? We’re happy to help. Leave an inquiry below, and one of our staff will respond via email.
Questions From Our Readers
How can you make money from life insurance policies while alive?
By tapping into your policy’s cash value or using living benefits, you can access money during your lifetime. Options include policy loans, partial withdrawals, or accelerated death benefits if you face a serious illness.