Your Life Insurance Policy
Is a Financial Asset
Just like your home, your life insurance policy is a financial asset you own — and you have the right to sell it.
What is a life insurance settlement?
Many policyholders are never told this. But life insurance is not just a contract; it’s an asset with potential market value. If your policy no longer fits your life, goals, or financial situation, a life insurance settlement allows you to take control of that value.
A life insurance settlement is an option that allows qualifying policyholders to sell an existing life insurance policy to an institutional buyer for a lump-sum cash payment.
The amount received is typically more than the policy’s cash surrender value and less than the death benefit. Once the policy is sold, the buyer assumes responsibility for all future premium payments and becomes the beneficiary.
Life settlements are legal and regulated in most U.S. states and have been part of the financial marketplace for decades.
What Can Life Settlement Funds Be Used For?
One of the most important — and often misunderstood — aspects of a life insurance settlement is this: There are no restrictions on how the funds can be used.
The proceeds from a life settlement are yours to use however you choose, including but not limited to:
- Retirement income or lifestyle support
- Long-term care or healthcare expenses
- Medical bills or ongoing treatment
- Eliminating debt or mortgage payments
- Supporting a spouse or family member
- Funding travel, relocation, or major life transitions
- Business or personal investments
- Improving quality of life today
Who Typically Qualifies for a
Life Insurance Settlement?
While each case is unique, most life insurance settlements follow general qualification guidelines based on:
Age & Health
- Typically 65 years or older
- Or younger individuals with significant health changes or chronic conditions
Policy Type
- Universal Life (UL)
- Guaranteed Universal Life (GUL)
- Whole Life
- Convertible Term Life (converted or eligible for conversion)
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- Generally $100,000 or more in death benefit
Policy Status
- Policy must be active and in force
- Premiums must be current at the time of evaluation
Why Policyholders Consider a Life Settlement
Life changes — and financial strategies should be able to change with it.
Policyholders often explore life settlements when:
- The original purpose of the policy no longer applies
- Premiums have become difficult to maintain
- Beneficiaries are financially secure
- Healthcare or long-term care planning becomes a priority
- A policy is at risk of lapsing or being surrendered
Before giving up a policy with potential value, many choose to understand what the secondary market for life insurance may offer.
Learn Your Options. Keep Control.
Understanding your policy’s value does not obligate you to sell. Understand your policy and have choices.
Frequently Asked Questions
