How to Sell My Life Insurance Policy: Step-by-Step Guide
If you’ve ever wondered, “Can I sell my life insurance policy?”, the answer is yes — through a financial process called a life settlement. Many policyholders find themselves paying high premiums for insurance they no longer need. By choosing to sell your life insurance policy, you can unlock its hidden value and receive a cash payout today.
In this guide, we’ll explain how to sell life insurance, who qualifies, and what to expect during the process.
Why Would Someone Sell Their Life Insurance Policy?
Life circumstances change. Some common reasons people choose to sell include:
- Premiums have become too expensive to maintain.
- You no longer need coverage due to retirement or financial security.
- You want to fund healthcare, retirement, or personal goals.
- Your beneficiaries’ needs have changed.
Instead of letting the policy lapse or surrendering it for a low payout, selling your insurance policy often results in a much larger cash return.
How Do You Sell Life Insurance?
The process of selling is straightforward but should be done with the help of professionals:
- Policy Review – Experts analyze your policy details, face value, premiums, and health status.
- Eligibility Check – Generally, policies over $100,000 with insureds age 65+ qualify.
- Market Bidding – Licensed life settlement providers present your policy to investors.
- Receive Offers – You’ll compare cash offers and select the best one.
- Get Paid – Once approved, you receive a lump sum, often far greater than the surrender value.
By working with a trusted company, you’ll know exactly how to sell life insurance safely and securely.
Can You Sell a Life Insurance Policy if You’re Younger?
Yes, in some cases. While life settlements are most common for seniors, younger individuals facing serious health conditions may also qualify. The key factor is the market value of your policy, not just age.
Benefits of Selling Your Life Insurance
When you sell your insurance policy, you:
- Receive Cash Now – Use it for retirement, healthcare, or debt relief.
- Eliminate Premium Payments – Free up monthly cash flow.
- Get More Than the Surrender Value – Settlements often pay 4–10 times higher.
- Enjoy Financial Flexibility – You control how to use your payout.
Choosing the Right Partner
Not all providers offer the same level of service. At Summit Life Settlements, we specialize in helping policyholders maximize their return. We guide you through every step — from evaluating if you qualify to securing the best possible offer.
👉 If you’re asking, “Can I sell my life insurance policy?” the answer is yes — and our team is here to help you get started. Learn more here: Sell My Life Insurance Policy.
Who Qualifies to Sell a Life Insurance Policy?
Not every policyholder will be eligible to sell. Typically, individuals who are 65 years or older with a policy valued at $100,000 or more are the strongest candidates. However, younger policyholders facing significant health changes may also qualify. The best way to know is by requesting a free evaluation from a trusted settlement company. This ensures you fully understand the value of selling your insurance policy before making a decision.
Final Thoughts
Selling a life insurance policy can be a smart financial decision if your needs have changed. By understanding the process, checking eligibility, and partnering with an expert, you can unlock the true value of your policy.
At Summit Life Settlements, we’re here to guide you every step of the way — ensuring you get the highest pay-out possible.
👉 Ready to explore your options? Start here: Sell My Life Insurance Policy.
FAQs: Selling Your Life Insurance Policy
1. What does it mean to sell a life insurance policy?
Selling a life insurance policy—known as a life settlement—means transferring ownership of your policy to a third-party buyer in exchange for a lump sum cash payment. The buyer takes over premium payments and becomes the beneficiary.
2. How much can I get for my policy?
The payout is typically significantly higher than the surrender value, but less than the policy’s death benefit. The exact amount depends on your age, health, policy type, face value, and premium costs.
3. Who qualifies to sell a life insurance policy?
Most sellers are:
Seniors (65+) with policies they no longer need
Individuals with high premium costs
Those needing funds for retirement, debt, or healthcare expenses
Minimum face value requirements usually start at $100,000.
4. What types of policies can be sold?
Most commonly:
Universal Life
Whole Life
Convertible Term Life
Some term policies can qualify if they are convertible to permanent coverage.
5. Is selling my policy legal?
Yes, life settlements are legal and regulated in most U.S. states. Always work with a licensed life settlement broker to ensure compliance and protect your interests.
6. How long does the process take?
Typically 4–8 weeks, depending on how quickly medical and policy records are collected and how competitive the bidding process is.
7. Do I have to pay taxes on the money I receive?
Life settlement proceeds may be taxable, depending on your cost basis and other factors. Consult a tax advisor before making a decision.
8. How do life settlement companies make money?
They either hold your policy until maturity or resell it to institutional investors. Brokers (like Summit) earn a commission, but we strive to keep fees as low as possible to maximize your payout.
9. Will I need a medical exam?
Not typically. Buyers rely on your existing medical records, which are obtained with your consent.
10. How do I start?
Start with a free policy valuation to see what your policy might be worth on the secondary market. Summit Life Settlements offers this with no obligation.
