Life Settlements

A third option before you lapse or surrender your policy.

Life Settlements may pay policyowners an average of four or more times the policy's cash surrender value. The settlement may have market value beyond its cash surrender value, but less than the face value of the policy.

The goal is to provide education and information so policyowners can understand their options before making a decision.

How it works

An eligible policyowner sells the policy for a cash lump sum payment.

In a Life Settlement, a third-party buyer purchases an existing life insurance policy. The buyer becomes responsible for future premiums and receives the death benefit later.

Every policy is different. Policy type, death benefit, premiums, age, health, ownership, and market demand can all affect whether an offer is available.

1. Review

Gather the basic policy details and understand why the owner is considering a change.

2. Qualify

Look at age, policy size, premiums, and other factors that may affect settlement eligibility.

3. Decide

Compare the practical options before lapsing, surrendering, or continuing the policy.

Why Life Settlement? Why now?

Many senior-owned policies terminate even though they may meet Life Settlement criteria.

The National Association of Insurance Commissioners has recognized Life Settlements as one possible way seniors may finance long-term care. Life Settlements are highly regulated across the U.S. and include consumer protections that should be reviewed before any transaction.

$200B Estimated senior-owned policy benefits that terminate each year and meet Life Settlement criteria

$85B Estimated benefits in $100K to $1MM policies that terminate each year and meet criteria

65+ Common starting age for policy review

Who may qualify

The initial focus is policyowners age 65+ with policies of $100,000 or more.

This is a practical starting point, not a guarantee. A confidential review is still needed because policy details and market conditions matter.

Policyowner age

Age 65+ is the current target audience for the initial site messaging.

Policy size

A $100,000+ death benefit is the current minimum review guideline.

Reason for review

Premium pressure, retirement planning, healthcare costs, family changes, or a policy no longer needed.

FAQ

Common questions from policyowners and families.

Is a Life Settlement the same as surrendering a policy?

No. Surrendering is handled through the insurance carrier. A Life Settlement involves selling the policy to a third-party buyer, which may produce a different value.

Does every policy qualify?

No. Policy size, age, premiums, health profile, ownership, and market demand all matter. The current target is age 65+ with a policy death benefit of $100,000 or more.

What can settlement proceeds be used for?

Proceeds may be used for retirement, health costs, long-term care, family needs, or any other purpose the policyowner chooses.

Will taxes or benefits matter?

They may. Policyowners should consult qualified tax, legal, and financial advisors before accepting any settlement.

What happens to beneficiaries?

If a policy is sold, the buyer pays the premium and becomes the beneficiary. The seller receives a lump-sum cash payment and no longer has to pay the premiums.