Policy Owners
Sell My Life Insurance Policy for Cash
If you’re searching for information on how to sell my life insurance policy for cash, you may be able to do exactly that through a life settlement if your policy qualifies.
If you own a life insurance policy you no longer need or can no longer afford, you may be able to sell it for a lump sum cash payment instead of surrendering it to the insurance company or letting it lapse. This transaction is called a life settlement, and it allows qualifying policy owners to sell their life insurance policy for more than its cash surrender value.
Settlement Group is a licensed life settlement provider that has been helping policy owners for more than 20 years. We are licensed in 38 states and Washington, D.C. As a licensed provider, we purchase qualifying life insurance policies directly from policy owners and pay policy owners at closing. We are also a proud member of the Life Insurance Settlement Association (LISA).
A life settlement may make sense if:
- Your estate planning needs have changed.
- You need cash for healthcare or other major expenses.
- You no longer want to pay premiums on a policy you no longer need.
- You want to receive more than your policy’s cash surrender value.
How Much Can I Get for Selling My Life Insurance Policy?
Every life insurance policy is different, so there isn’t a standard payout that applies to everyone. If you’re wondering how much your life insurance policy is worth, the answer depends on several factors, including:
- Your age and overall health
- The type of policy you own
- The policy’s death benefit
- The premiums required to keep the policy in force
- Current life expectancy estimates
Whole life, universal life, variable life, joint survivorship, and many convertible term life insurance policies are among the most common candidates for a life settlement.
The only way to know what your life insurance policy is worth is through a confidential, no-obligation policy evaluation.
Is Selling My Life Insurance Policy a Good Idea?
A life settlement isn’t the right solution for everyone. For some policy owners, it provides access to cash from a policy they no longer need. For others, keeping the policy may be the better choice. The right decision depends on your financial goals, insurance needs, and personal circumstances.
Before deciding, consider the following:
Do You Still Need the Coverage?
If the original reason for purchasing the policy no longer exists, selling it may be worth exploring. For example, your children may now be financially independent, your business may no longer need key person coverage, or your estate planning goals may have changed.
How Much Does It Cost to Keep the Policy?
If premium payments have become difficult or no longer fit your budget, a life settlement may provide an alternative to surrendering the policy or allowing it to lapse.
How Does the Offer Compare to the Cash Surrender Value?
A life settlement provides more than the cash surrender value offered by the insurance company. Comparing both values can help you make an informed decision.
Can You Sell Only Part of Your Policy?
Depending on your policy and circumstances, a partial life settlement may allow you to sell a portion of the death benefit while keeping the remaining coverage.
Should You Talk with a Financial or Tax Advisor?
A qualified advisor can explain how a life settlement fits into your overall financial plan and discuss any potential tax implications before you make a final decision.
What Happens After I Sell My Life Insurance Policy?
Once you accept an offer, the settlement process moves through several standard steps.
Closing Documents
You’ll sign the purchase agreement along with ownership and beneficiary transfer documents.
Verification
The buyer works with the insurance company to complete the ownership transfer and verify that all closing requirements have been met.
Funding
Once the ownership transfer has been verified, funds held in escrow are released to you.
Ownership Transfer
The buyer becomes the new owner and beneficiary of the policy and assumes responsibility for future premium payments. Once the sale is complete, you have no further obligations related to the policy.
Do I Have to Pay Taxes on the Money I Get?
Life settlement proceeds may be subject to federal income tax, and the tax treatment depends on factors such as your cost basis and how the proceeds are characterized.
Because every policy owner’s tax situation is different, we recommend discussing your transaction with a qualified tax advisor or CPA before selling your policy. Settlement Group can provide the information your tax professional needs, but we do not provide tax advice.
Can I Really Sell My Life Insurance Policy for Cash?
Yes. Life settlements are regulated transactions available to qualifying policy owners in most states.
Many people who qualify are age 65 or older, although individuals with significant health conditions may qualify at younger ages.
Whole life, universal life, variable life, joint survivorship, convertible term life insurance, and some group life insurance policies may qualify. Policies may be owned by individuals, trusts, corporations, foundations, nonprofits, or other business entities.
The easiest way to find out whether your policy qualifies is to request a confidential, no-obligation policy evaluation from Settlement Group.
Find Out What Your Life Insurance Policy Could Be Worth
Give us a call or complete the form below to find out whether your policy qualifies for a life settlement.
Phone: 912-882-0840
Email: inquiries@settlementgroup.io