A life settlement is the sale of an existing life insurance policy to a licensed third-party buyer for a lump-sum cash payment that is greater than the policy's cash surrender value but less than the death benefit.
Life Settlements
A life settlement is simple: you sell your life insurance policy to a licensed institutional buyer for a lump sum of cash.
The payout is more than the cash surrender value your insurance company offers — and less than the death benefit.
It's legal. It's regulated. And it's been upheld by the Supreme Court since 1911.
Find Out What Your Policy Is WorthSeniors 65 and older who have accumulated a policy they no longer need.
People who can no longer afford their premiums and are considering lapsing their policy.
Those whose coverage needs have changed — children are grown, mortgages are paid.
Business owners with key-person or buy-sell policies that are no longer needed.
Most permanent life insurance policies qualify — and more than people expect.
Universal Life
Flexible premium policies are among the most commonly settled.
Whole Life
Traditional permanent policies with cash value typically qualify.
Variable Life
Variable policies with investment components are settleable in most cases.
Convertible Term
Term policies with conversion rights and group policies may also qualify.
Most settlements pay 4–7x the cash surrender value your insurance company would give you. But the range is wide — it depends on your age, health, policy type, and face value.
The only way to know your number is to go to market. That means competitive bidding among institutional buyers — with a broker in your corner making sure you see every offer.
Find Out What Your Policy Is WorthSettlement value isn't random. These are the factors institutional buyers evaluate when bidding on your policy:
Older policyholders generally receive higher settlement offers. Most buyers focus on ages 65+.
Health changes often increase settlement value. Shorter life expectancy = higher offer from buyers.
Higher face values attract more buyers. $100K minimum; best results above $250K.
Universal life settles most often. Whole life, variable, and convertible term also qualify.
Lower ongoing premiums make the policy more attractive to buyers, resulting in higher bids.
More bidders = higher price. A broker ensures maximum market exposure for your policy.
A life settlement is the sale of a life insurance policy to a licensed institutional buyer for a lump sum of cash — more than the cash surrender value, less than the death benefit. It is legal, regulated, and has been upheld by the U.S. Supreme Court since 1911.
Most people aged 65 or older with a life insurance policy of $100,000 or more in face value qualify. Health changes, policy type, and premium costs also affect eligibility.
Most life settlements pay 4–7 times the cash surrender value. The exact amount depends on your age, health, policy type, face value, and premiums. The only way to know is competitive bidding among institutional buyers.
Yes. The right to sell a life insurance policy was established by the U.S. Supreme Court in Grigsby v. Russell (1911). Life settlements are regulated in 43 states.
Most life settlements close within 60–120 days. The timeline depends on how quickly medical records and policy documents are obtained.
Universal life, whole life, variable life, convertible term, and some group life policies qualify. The policy must typically have a face value of at least $100,000.
It starts with a conversation. No cost, no obligation. Just clarity.