If you can no longer afford your life insurance premiums, a life settlement lets you sell your policy for a lump-sum payment instead of lapsing the policy and receiving nothing.
Premium Relief
Premium increases hit hardest when you can least afford them — in retirement, after a health change, or on a fixed income.
Most people think they have two choices: keep paying or walk away. There's a third.
Explore Your Options
When premiums become unaffordable, most policyholders only consider the first two. The third is often far more valuable.
Option 01
Continue paying rising premiums out of pocket. Works if the coverage is still needed — but if not, it's money spent on a benefit no one may ever use.
Outcome: Expensive, ongoing obligation
Option 02
Return the policy to the insurance company for its cash surrender value. Simple — but typically pays a fraction of what the policy is actually worth.
Outcome: Low payout, value left behind
Option 03 — Recommended
Sell the policy on the secondary market to an institutional buyer. The market typically pays 4–7x the cash surrender value — often significantly more.
Outcome: Market value, financial resource
A life settlement turns a financial burden into a financial resource.
A confidential policy review is free and takes minutes. Before you lapse or surrender, find out what the market will pay.
Key Takeaway
Never let your policy lapse. Lapsing means getting $0 for an asset that could be worth thousands or hundreds of thousands. A life settlement is almost always the better exit.
Before letting your policy lapse (and getting $0), consider a life settlement. Selling your policy pays you a lump sum — typically 4–7x the cash surrender value — instead of losing everything.
If you stop paying premiums, your policy will eventually lapse and you'll receive nothing. This is the worst financial outcome. A life settlement or even a cash surrender is better than lapsing.