Q. I have a $300,000 long-term care insurance policy I’d like to sell. I’ve had it since 1998. Can I get my premiums back? It seems like it might be impossible to sell.
— Policyholder

A. In the world of insurance, the ability to sell a policy is known as a life settlement.

This applies to permanent insurance such as whole or universal life or convertible term, said Claudia Mott, a certified financial planner with Epona Financial Solutions in Basking Ridge.

“A policyholder is paid more than the cash value that has accrued in the policy, but less than the death benefit,” Mott said.

viatical settlement is another vehicle for selling an insurance policy, but is only available to those with a terminal illness, she said.

But there is no process in place to sell a long-term care insurance policy.

“Before you consider selling the policy, it is important to be sure that you are in a financial position to fund a long-term care event,” she said. “New Jersey ranks in the top-10 for most expensive states for nursing home and assisted living facilities.”

Email your questions to Ask@NJMoneyHelp.com.

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