Disclosure: MoneyMagpie works with a range of financial services providers, including We Buy Life Policy. However, this article reflects Marc Crosby’s genuine personal experience of using the service. He has worked in personal finance publishing for nearly a decade and regularly reviews financial products and services. If he had encountered any significant issues during the process, he would have included them in this review. It is this transparency that makes MoneyMagpie a trusted brand.
When you’re in your twenties and buying your first home, taking out a life insurance policy is a sensible financial decision. But life changes and sometimes you need to make some significant changes.
I’m now in my mid-thirties, have recently moved into a bigger house with my partner, my young child, and a naughty but lovable dog called Benji. With a bigger home came a bigger mortgage, and my old life insurance policy just wasn’t going to cut it, so I needed to take out a more expensive life insurance policy.
With a new insurance product, I wondered what I was going to do with my old life policy. Initially, I assumed my only option was to cancel it. What I didn’t realise was that some people may be able to sell their life insurance policy instead.
Then, like the universe was listening, I saw an article that my colleague Vicky had written about We Buy Life Policy and was pleased to see I wouldn’t just lose all of the money I had already invested into the safety blanket of life insurance, so I took the necessary steps to enquire about my now no-longer-needed old policy.
What Is We Buy Life Policy?
We Buy Life Policy specialises in helping eligible policyholders sell qualifying life insurance policies in exchange for a lump sum payment.
Rather than simply cancelling a policy and receiving nothing, some policyholders may be able to transfer ownership of their policy and receive cash in return. This can be an attractive option for people whose circumstances have changed, who no longer require the cover, or who would prefer access to money now.
The company guides customers through the process, verifies eligibility, manages the paperwork and helps facilitate the transfer of ownership where appropriate.
Of course, not every policy can be sold, and whether it’s the right choice depends entirely on your personal circumstances.
Why I Decided to Sell My Life Insurance Policy
Like many people, I originally took out life insurance to provide financial protection for my loved ones.
Over time, however, my financial arrangements changed. Following our house move and the need for a new life insurance policy, I realised this old policy was no longer meeting our new needs.
As somebody who spends their professional life helping people make informed financial decisions, I always encourage looking at all available options before cancelling a product outright.
The more I thought about it, the more it made sense to investigate whether I could sell it rather than simply cancel it. Having recently moved house and with all the costs that come with raising a young family, the prospect of unlocking some extra cash was certainly appealing. So I decided to start the process myself and see whether my policy qualified.
To be honest, when the money landed in my account, I was genuinely delighted. It felt like finding value in something that no longer had any for me, and the lump sum arrived at a time when every extra bit of financial support was welcome (we’re still doing works to the house even now!).
The Process: How I Sold My Life Insurance Policy
Getting the quote and ensuring suitability
I first uploaded my policy documents to get a quote for exactly how much I would be getting paid.
When they came back to me with the price, they offered a good explanation for the valuation and I was satisfied to continue.
I also had to complete a personal details and suitability form – We Buy Life Policy send this to all customers as part of their eligibility criteria. This ensures you are in a sound state of mind, that you’ve thought over the ramifications of what you’re doing and ideally sought financial advice, and that you’ve spoken with family members who might be impacted by this decision.
As a money journalist, this was reassuring to see – it really felt as if they were putting plenty of safeguards in place so no one is doing this on a whim or without fully understanding the ramifications.
In my case it was a no-brainer. I was going to cancel my old policy anyway, so on I went.
Step 1: Uploading Identification and Address Documents
The first stage was very straightforward.
I needed to provide proof of identity and address, which I uploaded online using my phone. It was simply a case of scanning the documents and submitting them electronically.
The only delay came from my recent house move because I was waiting for my updated driving licence to arrive showing my new address.
Once I’d uploaded everything, the process moved quickly. As soon as my documents were approved, the next stage could begin.
Step 2: Completing the Required Forms
After my documents had been verified, I received a mixture of electronic and physical paperwork.
Some forms could be signed online, which was quick and convenient. The digital process was simple and only took a few minutes to complete.
The remaining paperwork was sent by post because certain documents required a traditional wet-ink signature. While that might seem old-fashioned, it gave me confidence that everything was being handled properly.
Throughout this stage, communication was clear and I always knew what the next step would be.
Step 3: Confirming My Policy Was Eligible
This was the only part of the process that required a little extra effort.
I needed to confirm that my policy didn’t include something called Payout Planner, as this would have prevented me from selling it.
Unfortunately, there wasn’t an obvious way to check this information through my insurer’s online portal. I ended up using my insurer’s online chat service and asking directly.
Thankfully, they quickly confirmed that Payout Planner wasn’t attached to my policy, meaning I could proceed.
While it added an extra step, it wasn’t an issue caused by We Buy Life Policy. In fact, the team were clear about what needed to be confirmed and why.
Step 4: Signing the Contract
Once eligibility had been confirmed, the physical contract arrived in the post.
I needed to sign the paperwork and obtain a witness signature from someone who wasn’t a family member and didn’t live at my address.
After that, I simply returned everything using the Freepost envelope provided.
The instructions were clear and there were no unexpected hurdles.
Step 5: Receiving the Payment
This was the part everyone wants to know about.
Within a week of returning the completed paperwork, the money was paid directly into my bank account.
Considering the process involves transferring ownership of a financial product and completing legal documentation, I was pleasantly surprised by how quickly everything was finalised. Money in the account, no fuss. Hard to complain!
How Long Does It Take to Sell a Life Insurance Policy?
Every case will be different, but my experience was relatively fast.
The biggest delays are likely to be obtaining information from your insurer or waiting for physical paperwork to be completed and returned.
Once my documentation was submitted and approved, payment arrived within a week of returning the signed contract.
Things to Consider Before Selling a Life Insurance Policy
Selling a life insurance policy isn’t right for everyone.
Before making a decision, it’s worth asking yourself:
- Do you still need the cover for your family or dependants?
- Could replacing the cover later be more expensive?
- Have your financial circumstances changed significantly since taking out the policy?
- Have you explored all available alternatives?
As somebody who has spent years covering personal finance, I always encourage readers to look at the bigger picture before making decisions involving insurance and long-term financial planning.
In my case, the policy no longer fitted my needs, which made selling it a sensible option. It’s certainly not something I would recommend doing just for a few quid.
My Overall We Buy Life Policy Review
Overall, I found We Buy Life Policy straightforward, transparent and easy to deal with.
The online document upload process was simple, the electronic forms saved time, and communication throughout was clear and professional. Apart from needing to confirm one detail with my insurer, the entire process was largely hassle-free.
Importantly, my experience was exactly what I’d expect from a company operating in the financial services sector: clear instructions, realistic expectations and no unnecessary complications.
Would I recommend it?
Based on my experience, yes.
That doesn’t mean selling a life insurance policy is the right choice for everyone. Financial decisions should always be made carefully and with consideration of your personal circumstances. However, if you’ve reached the point where you’re considering cancelling a policy you no longer need, it’s worth investigating whether selling it could be a more beneficial alternative.
My biggest piece of advice is not to rush. Understand exactly what you’re giving up, what you’re receiving in return and how the decision fits into your wider financial plans.
For me, it was the right choice at the right time. The process was straightforward, the payment arrived quickly, and it turned an unused policy into money that can now be put towards family life, home ownership and all the costs that come with both.
About the Author
Marc Crosby is Head of Publishing at MoneyMagpie and has spent nearly a decade writing about personal finance, insurance, consumer rights, investing and money-saving opportunities. Reviewing financial products and services forms a key part of his role, and this article reflects his genuine first-hand experience of using We Buy Life Policy.
