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Understanding life settlements.

Your complete, plain-English guide: what a life settlement is, who qualifies, which policies are eligible and how the process works.

The Basics

What is a life settlement?

A life settlement is the sale of an existing life insurance policy to a licensed third-party buyer for a lump-sum cash payment — typically greater than the policy's cash surrender value, but less than its death benefit.

After the sale, the buyer becomes the new policy owner, takes over responsibility for all future premiums, and receives the death benefit when the insured passes away.

Where a life settlement fits

Cash surrender value

What the insurance company pays if you cancel. Often little or nothing.

Life settlement

A lump sum from a buyer — typically far more than the surrender value.

Death benefit

The policy's face amount, paid out on the insured's passing.

Eligibility

Who typically considers a life settlement?

Life settlements are often ideal for seniors and policy owners who no longer want, need, or can comfortably maintain their life insurance. Common reasons include changing financial goals, rising premiums, or a desire to use the policy's value now — for retirement, medical care or estate planning.

General Guidelines

Health & age qualifications

Age 65 or younger: may qualify if diagnosed with a terminal, severe or life-threatening illness.
Ages 65–74: may qualify with a serious chronic condition and manageable ongoing premiums.
Ages 75–80: may qualify with identifiable health impairments and affordable premium obligations.
Age 80 and older: most individuals qualify for review.
Any age: anyone with an identifiable terminal illness qualifies.

Not sure where you fit? A free review will tell you — with no obligation.

Eligible Policies

What policies may qualify?

Many types of policies may qualify — including the coverage veterans hold most often.

VGLI

SGLI

VA Life

USAA

Navy Mutual

MBA (Military Benefits Association)

MetLife

Universal Life

Whole Life

Variable Life

Indexed Universal Life

Convertible Term

Term policies must still be eligible for conversion into a permanent policy. All policies must be beyond the two-year contestability and suicide period that begins on the policy's original issue date.

Policy Value

How value is determined

The market value of a policy depends on several factors:

The insured's age and health status
The policy's death benefit amount
The ongoing premium costs
The type and structure of the policy

The Process at a Glance

From first call to closing.

Eligibility Review

We assess your policy type, premiums and contestability status — free and confidential.

Market the Policy

As your licensed broker, we present your policy to qualified institutional buyers.

Receive Offers

Competing bids are gathered and reviewed with you, side by side.

Accept & Close

Once you accept an offer, ownership transfers and payment is made to you.

Make an Informed Decision

Benefits and considerations.

Benefits

Immediate access to cash that can exceed the surrender value
No more ongoing premium payments
Flexibility to use the funds for any personal or financial need

Considerations

The death benefit transfers to the buyer upon sale
Proceeds may be subject to taxes
Regulations and disclosure requirements vary by state

Free · Confidential · No Obligation

See if your policy qualifies.

Our free review tells you whether a life settlement makes sense for you — and what your policy could be worth.

Request My Free Review Call (407) 342-8719