How to Sell Life Insurance with Confidence: A Complete Guide
Learning how to sell life insurance can feel overwhelming at first. Between understanding the market, handling paperwork, and negotiating with buyers, many policyowners aren’t sure where to begin. That’s where a life settlement broker can help.
At Summit Life Settlements, our mission is to guide policyholders through every step of the selling process—ensuring a smooth, efficient, and transparent experience while maximizing your policy’s value.
How to Sell Life Insurance: Why Selling Life Insurance Can Be Complicated
A life insurance policy is more than a document—it’s a valuable financial asset with unique features. Trying to sell life insurance on your own can be challenging for several reasons:
Market Knowledge: Understanding who the right buyers are and how much your policy is truly worth requires insider expertise.
Documentation: Selling involves medical records, HIPAA releases, and other forms that must be completed accurately for underwriting.
Negotiation: Direct offers from buyers often undervalue your policy, especially without competitive bidding.
Privacy & Compliance: Sharing personal and medical information without proper safeguards can be risky.
Without professional help, these challenges can delay the sale, lower your payout, and cause unnecessary stress.
How a Broker Simplifies the Process to Sell Life Insurance
A life settlement broker works for you—the policyowner—not the buyer. This ensures that your interests always come first. Here’s how a broker helps streamline the process when you sell life insurance:
1. Personalized Evaluation and Policy Review
Before marketing your policy, a broker evaluates your eligibility based on age, health, and policy type. This gives you a clear understanding of whether your policy qualifies for a life settlement and what its potential market value may be.
2. Market Access and Competitive Bidding
Brokers connect you with multiple licensed buyers through a secure marketplace. By creating competition, they help you sell your life insurance policy for a higher offer. Policies that might receive low offers in a one-on-one sale often secure much better bids through broker representation.
3. Expert Negotiation
Negotiating with buyers takes skill and strategy. Brokers handle all communications, ensuring you receive fair offers. This not only saves time but often results in a significantly higher payout than selling directly.
4. Handling Documentation and Legal Requirements
A broker manages all necessary paperwork—from medical authorizations to policy transfers—ensuring accuracy and regulatory compliance. This reduces the risk of errors and delays during the sale.
5. Maintaining Confidentiality
Privacy is essential when you sell life insurance. Brokers ensure that all personal and medical data is handled securely, giving you peace of mind throughout the transaction.
6. Streamlined Process from Start to Finish
From evaluation to closing, brokers guide you through every step. With their expertise, most policyowners can complete the process in weeks instead of months.
How a Broker Helps You Sell Life Insurance for More
Consider Frank, who had a $1,000,000 policy and a life expectancy of 4–6 years. On his own, the best offer he received was $80,000. After working with a broker, his policy was marketed to multiple buyers—and he received $450,000.
This example shows how professional guidance, market access, and skilled negotiation can dramatically increase the value of your policy. Even better, the broker’s commission was paid by the buyer, not Frank.
Why Choose Summit Life Settlements to Sell Life Insurance
At Summit Life Settlements, our licensed brokers work exclusively for you, the policyowner. Our Summit Life Marketplace connects you with a large network of institutional buyers, creating competition and maximizing your payout when you sell your life insurance policy.
We handle everything—from consultation and evaluation to marketing, negotiation, and closing. Our Life Settlement Evaluator Report gives you a clear snapshot of your policy’s potential value before you make any decisions.
We also prioritize data security, using advanced encryption to protect your information at every stage. With Summit Life Settlements, you can sell life insurance confidently, knowing your privacy and interests come first.
Discover Your Policy’s True Value Today
We make it simple for policyowners who want to sell life insurance efficiently, securely, and for the best possible value. Our team of licensed brokers, powerful marketplace tools, and expert guidance make the entire process stress-free and transparent.
Don’t let your policy go unused—contact Summit Life Settlements today for a free policy evaluation. Learn how much your life insurance could be worth and get the support you need to sell your life insurance with confidence.
Frequently Asked Questions
1. Who does a life settlement broker represent?
A life settlement broker represents you, the policyowner. Their job is to ensure the transaction works in your best interest, not the buyer’s. They evaluate multiple offers, provide transparent guidance, and negotiate terms to maximize your payout.
2. How long does it take to sell life insurance through a broker?
The process usually takes 6–12 weeks, depending on the complexity of the policy, how quickly medical records can be obtained, and the responsiveness of buyers. Permanent policies are generally faster to process than term policies.
3. Do I have to pay any upfront fees?
No. Reputable brokers, including Summit Life Settlements, work on a contingency basis, meaning you pay nothing unless the sale is completed. The broker’s commission is typically paid by the buyer at closing.
4. Is my personal and medical information safe during the sale?
Absolutely. Brokers maintain strict confidentiality, comply with HIPAA standards, and use secure systems to protect your data throughout the process.
5. Can any life insurance policy be sold?
Life settlements generally apply to permanent policies (whole life, universal life, and convertible term) with substantial face values. Policies that are too small, non-convertible term policies, or policies with minimal remaining premiums may not qualify. A broker can review your policy to confirm eligibility.
6. How much can I expect to receive from a life settlement?
Payouts vary based on age, health, policy type, and coverage amount. On average, policyowners receive 4–10 times the cash surrender value, though some may receive even more if multiple buyers compete.
7. Do I still have to pay premiums after selling my policy?
No. Once the policy is sold, the buyer assumes responsibility for all future premiums.
8. Will selling my policy affect my taxes?
Life settlement proceeds may be taxable, depending on your cost basis and the type of policy. A tax professional can provide personalized guidance to ensure compliance.
9. Can selling a policy affect my eligibility for government benefits?
It might, depending on the program. Life settlement proceeds could impact needs-based benefits such as Medicaid. Consulting a benefits specialist can help clarify potential effects.
10. Why use a broker instead of selling directly to a buyer?
A broker provides access to multiple licensed buyers, creates a competitive bidding environment, and ensures maximum transparency. Going direct often limits options and may result in lower offers.
11. Are life settlements only for seniors?
While most policyowners are age 65 or older, life settlements can also be an option for younger policyowners with significant health issues or policies that are unaffordable.
12. Can I sell a term life insurance policy?
Yes, but usually only if the term policy is convertible to a permanent plan. Non-convertible term policies or those past the conversion window are typically only marketable if the insured has a short life expectancy.
13. What happens after I accept an offer?
Once you accept a bid, the broker coordinates all paperwork, medical record submissions, and legal transfers. Funds are typically disbursed directly to you after closing, and the buyer becomes the new policyowner.
