Your life insurance policy may be worth more than you think.
If you have a life insurance policy you no longer need, you may be able to sell it for significantly more than its cash surrender value. We'll walk you through how life settlements work and whether you qualify.
What is a life settlement?
A life settlement is the sale of an existing life insurance policy to a third-party buyer for more than its cash surrender value but less than the death benefit. Instead of surrendering your policy back to the insurance company for a fraction of its worth — or simply letting it lapse — you sell it to an investor and walk away with a lump-sum cash payment.
Most policyholders don't know this option exists. Many are leaving thousands of dollars on the table every year by surrendering policies instead of settling them.
Do you qualify for a life settlement?
Policy requirements
Your policy must have a face value of $100,000 or more and have been in force for at least 2 years. Both term and permanent policies may qualify.
Age & health
Most candidates are age 65 or older, or have experienced a change in health since the policy was issued. Changes in health can actually increase your policy's settlement value.
Life changes
Common reasons to consider a settlement: premiums have become unaffordable, you no longer need the coverage, you need liquidity, or your estate planning needs have changed.