Life Settlements

Life Settlements: Turn Your Life Insurance Policy Into Cash

What Is a Life Settlement?

A life settlement is the sale of an active life insurance policy to a licensed third-party buyer. After the sale, the buyer assumes responsibility for all future premium payments and becomes the policy’s beneficiary. The original policy owner receives immediate cash that can be used for retirement, healthcare, or long-term care expenses.

A life settlement allows eligible policyholders to sell their existing life insurance policy for a lump-sum cash payment. The amount received is typically greater than the policy’s cash surrender value and less than the death benefit. Life settlements are a legal, regulated financial option and are commonly used by seniors who no longer need or can afford their life insurance coverage.

A life settlement may be an option if you:

Are age 65 or older (or younger with certain health conditions)
Own a permanent life insurance policy (whole life, universal life, variable life)
Have experienced changes in health
No longer need the policy for its original purpose
Find premiums too expensive or burdensome
Want to use funds for retirement, healthcare, assisted living, or long-term care

Each policy is reviewed individually to determine eligibility and market value.

Who May Benefit From a Life Settlement?

How Life Settlements Work

Policy Evaluation – Your life insurance policy and health information are reviewed.
Market Bidding – Licensed life settlement providers compete to offer the highest value.
Offer Review – You choose whether to accept or decline an offer.
Policy Transfer & Payment – Ownership transfers and you receive a lump-sum payment.

There is no obligation to accept an offer.

Common Uses for Life Settlement Proceeds

Funds from a life settlement can help pay for:

Assisted living or memory care
Long-term care expenses
In-home care services
Medical expenses or insurance premiums
Retirement income supplementation
Debt reduction or estate planning needs

Many policy owners are unaware that selling a policy may provide significantly more value than surrendering it back to the insurance company.

For many seniors, a life settlement provides a valuable financial option when life insurance is no longer needed.

Important Considerations

Life settlements are not suitable for everyone
Proceeds may impact taxes, Medicaid eligibility, or estate plans
Policies must meet state and buyer requirements
A licensed professional should guide the process

We encourage clients to consult with their tax or legal advisor before proceeding.

Schedule a Consult

If you’re considering selling a life insurance policy or want to understand your options, we’re here to help.

Life Settlements