Informational
Learning Center
Informational
Informational
We’ve taken the guesswork out of understanding if your life insurance policy qualifies to be sold for cash. Our instant life settlement calculator has helped tens of thousands of policyowners understand what their policy may be worth, and it can help you too. Getting started is easy, and the process is painless.
Thousands of policyowners choose to sell their life insurance policies every year. In fact, policyowners sold more than $4.7 Billion of life insurance to life settlement providers in 2023.1 The reasons for selling are as diverse as the policyowners themselves. From purely economic reasons to changing beneficiary needs and estate planning purposes, there are countless reasons policyowners turn to life settlements. If you find yourself in any of the situations below, you should consider selling your policy as a potential solution.
Increasing premiums or changes in your financial situation could mean your policy is no longer affordable. Or, like many, you’d simply rather save the premium payments.
Retirement and medical expenses are growing faster than ever, and your life insurance may be an unexpected source of liquidity to help cover expenses.
If you’ve sold your home or business, or your beneficiaries have become financially independent, you may no longer have a need for the policy.
We get it, sometimes policyowners just don’t want or need their life insurance any longer. But don’t lapse or surrender your policy before getting an estimate of what it may be worth.
The proceeds from a life settlement may be subject to federal income tax. If the amount you receive exceeds the total premiums you’ve paid into the policy, the excess may be taxed as ordinary income and capital gains. The portion equal to the policy’s cash surrender value is generally taxed as income, while any remaining amount above that may be taxed as capital gains. It’s important to speak with a tax advisor to fully understand how your individual situation may be affected.
The life settlement process typically takes anywhere from four to twelve weeks. The timeline can vary depending on several factors, such as how long it takes to evaluate and finalize the sale. Working with a licensed provider or broker can help streamline the steps and ensure that all documentation is handled efficiently.
Once your policy is sold through a life settlement, the buyer becomes the new owner and beneficiary. This means that your original beneficiaries will no longer receive the death benefit. Instead, the investor who purchases the policy will receive the payout when you pass away. This is an important consideration, especially if your policy was originally intended to provide financial support to loved ones.
Eligibility for a life insurance settlement typically depends on your age, health, and the type of policy you have. Most sellers are over the age of 65 or have significant health issues that reduce life expectancy. In general, policies must be active and have a face value of at least $100,000. Convertible term and permanent policies are most likely to qualify. A free eligibility check can help you determine if your policy meets the necessary criteria.
Life settlement providers are licensed entities that buy policies directly from policyholders. Brokers, on the other hand, act as intermediaries who market your policy to multiple potential buyers to help you secure the best offer. Both play key roles in the life insurance settlement process and can help you navigate the legal and financial steps involved in selling your policy.
In most cases, yes. Many states require a “rescission period,” which gives you a specific window of time–typically 15 to 30 days–to cancel the agreement after the sale is finalized. During this time, you can return the settlement proceeds and have your policy ownership reinstated. Be sure to ask your provider about the rules in your state before completing the transaction.
Informational
Informational
Informational