About Life Settlements for Individuals

A “Life Settlement” allows you to sell a life insurance policy for a lump sum payment to the owner of a life insurance policy by one of many funding sources in exchange for full ownership of the policy.

It is the sale of a life insurance policy from one party to another party. The purchasing party is an institutional investor such as a bank or pension fund willing to purchase the policy and in return is named the beneficiary and is responsible for future premiums.

The policy is sold for more than the cash value offered by the insurance company and less than the actual death benefit. If you are age 70 or above, you may be surprised to learn that your life insurance policy may be worth much more than you think.

For younger people facing terminal illness, a viatical settlement or life insurance loan may be an option.

Learn More About Life Settlements

What Policies Qualify For A Life Settlement?

Most life insurance policies qualify including: universal, whole life, key man, group, and term (convertible to permanent).

Some polices such as universal policies are more attractive than others but all policies are worth evaluating.

The Life Settlement Option

Life settlements represent one of the most important financial innovations of the past 30 years. By recognizing the fundamental right of policy owners to assign their policies, life settlements have created a more competitive life insurance market where consumers enjoy new options and greater value every day.

Who Qualifies For A Life Settlement?

A good candidate for selling a life insurance policy:

  • Generally, anyone 70 years old or younger if there is a health impairment
  • Face value or death benefit of the policy exceeds $100,000
  • Owned the policy for 2 years or more

A basic principle that sets the cash value is that the older the age of the insured and/or the more health complications that exist, the higher the settlement amount.


  • Circumstances have changed and the policy is no longer necessary or may no longer be affordable
  • Pay medical expenses, assisted living, or long term care.
  • Create a more comfortable retirement
  • Pay off a debt or invest the proceeds
  • Eliminate increasing premium payments for an unneeded policy
  • Fund a grandkids college
  • Make a philanthropic donation to your favorite charity
Seniors Who Sold Their Life Insurance

As a policy owner you really have 3 options relative to your policy.

  • Keep the policy enforce, continue paying premium and maintain the death benefit.
  • Surrender or allow your policy to lapse. The insurance carrier will pay you the cash surrender value, if any.
  • Sell your policy through a life settlement and potentially receive substantially more

The secondary market for life settlements has changed the way we think about life insurance, financial planning, and maximizing our cash value. Life settlements are becoming an essential part of many seniors’ retirement and financial planning.

Success Stories

Joe’s Story In Brief

  • $305,500 life insurance policy
  • Cash surrender value $1,000
  • $10,920 annual premium
  • Final life settlement price of $75,000


The Background

A 70-year-old male with significant health issues had a $305,500 life insurance policy with Jackson National Life Insurance Company. The cash surrender value was only $1,000.

The Problem or Challenge

Huge Premium Increases
Joe was facing a huge increase in his annual premium obligation. His current annual insurance premium of $3,200 was being increased to $10,920 annually beginning the next year; a huge increase for an individual living on a fixed income.

The Solution

Joe received a final purchase price of $75,000.

Lee’s Story In Brief

  • $750,000 life insurance policy
  • Cash Surrender Value $3,800
  • Annual Premiums $22,500
  • Final settlement amount $175,000


The Background

Lee is an 84-year-old male with a $750,000 universal life insurance policy that has a cash surrender value of $3,800 and annual premiums of $22,500.

The Problem or Challenge

Increasing Costs, Policy No Longer Needed
Lee was dealing with significantly higher medical and other costs to pay for retirement. While he had other assets, such as his house, his life circumstances had changed and he didn’t need the life insurance policy any more. His wife had recently passed away and his kids were grown and doing fine.

The Solution

Lee elected to receive a free no obligation valuation of his life insurance policy and sold his policy for $175,000.

Christa’s Story In Brief

  • $100,000 policy
  • Cash Surrender Value $0
  • Annual Premiums $2,500
  • Final settlement amount $40,000


The Background

A 62 year old female had a $100,000 life insurance policy with no cash value and annual premiums of $2,500.

The Problem or Challenge

Life Threatening Illness
Christa had an aggressive form of cancer and needed money now to pay for the cancer treatments. The cancer treatments were expensive and Christa did not have available resources to pay for the portion not covered by insurance.

The Solution

Christa’s policy had no cash value so she decided to get a free no obligation appraisal of her life insurance policy on the secondary market.   She received several proposals and accepted an offer for $40,000.


Take The Next Step Today

To find out if you qualify for a life settlement,
please complete our brief 5 minute questionnaire.