Can I Sell My Life Insurance Policy? Complete 2025 Life Settlement Guide
If you’ve been paying premiums on a life insurance policy you no longer need—or can no longer afford—you’re not alone. Every year, thousands of Americans ask the same question: Can I sell my life insurance policy? And more importantly, how do I sell my insurance policy for cash?
The good news is that selling your policy is absolutely possible through a financial option called a life settlement. And at Summit Life Settlements, we’ve helped countless policyholders just like you turn their life insurance into meaningful payouts—with no hidden fees and full transparency from start to finish.
Here’s everything you need to know about how to sell your life insurance policy, who qualifies, what it’s worth, and how to get started today.
What Does It Mean to Sell My Life Insurance Policy?
Selling a life insurance policy is the process of transferring ownership of your existing policy to an institutional buyer in exchange for a lump sum cash payment. This is known as a life settlement.
The buyer becomes the new owner, pays future premiums, and eventually receives the death benefit. You, the original policyholder, receive immediate cash—often far more than the surrender value—with zero further obligations.
If you’ve been wondering “Can you sell a life insurance policy?” or “How do you sell life insurance?”, this is how: through a safe, regulated, and financially sound life settlement process.
Why Do People Sell Their Life Insurance Policies?
There are several common reasons people look to sell their policies:
- No longer need the coverage (children grown, mortgage paid off, etc.)
- Premiums are unaffordable
- Declining health makes it hard to sustain long-term financial plans
- Need immediate cash for medical care, debt reduction, or retirement
- Want to maximize the value of a policy rather than let it lapse
In most of these cases, letting the policy lapse or surrendering it back to the insurer results in little or no money back. A life settlement provides real cash—sometimes tens of thousands of dollars—that you can use for any purpose.
Can I Sell My Life Insurance Policy?
Yes, and you may qualify if:
- You’re 65 or older (or younger with serious health conditions)
- The policy has a face value of $100,000 or more
- You hold a universal, whole, or convertible term policy
- You’ve experienced a change in health or financial circumstances
- You no longer need or want the coverage
Even if you’re unsure about your eligibility, Summit Life Settlements offers a free, no-obligation policy evaluation. We’ll let you know your options without any pressure or cost.
How Do You Sell Life Insurance?
If you’ve ever wondered, “How do I sell my life insurance policy?”, the process is simpler than you might think — especially when you have expert guidance. Here’s how it works from start to finish:
1. Submit Your Policy for Review
Start by sharing a few basic details about your policy — including the type of coverage, face amount, and your age and health history. You can do this easily through a short online form or a quick call with our team.
2. Policy Evaluation and Market Outreach
Once we review your information, we present your case to our extensive network of licensed institutional buyers. These buyers then compete to purchase your policy, creating a true marketplace that drives your value up — not down.
3. Compare and Choose the Best Offer
After receiving multiple bids, we’ll walk you through each offer clearly and objectively. Our team helps you understand the terms, pricing, and implications so you can confidently select the offer that aligns with your financial goals.
4. Secure Your Cash Payout
Once you accept an offer, we guide you through the closing process — handling all documentation, policy transfer, and communication with the buyer. After closing, you receive your lump-sum cash payout, and the buyer assumes all future premium responsibilities.
At Summit Life Settlements, we handle everything — from gathering medical records to negotiating with buyers — ensuring a simple, transparent, and rewarding experience every step of the way.
How Much Can You Get for Selling a Life Insurance Policy?
Settlement amounts vary widely, but generally fall between 10% and 40% of the death benefit—often much more than the surrender value.
For example:
- $250,000 policy → payout between $25,000 and $100,000
- $500,000 policy → payout between $50,000 and $200,000
What affects the value?
- Your age and health
- Type and size of the policy
- Cost of future premiums
- Market demand from buyers
Summit Life Settlements helps you navigate all of this and works hard to get you the highest offer possible.
Real Story: Selling My Insurance Policy Helped Save My Retirement
Lisa, a 70-year-old retired teacher, had a $300,000 universal life insurance policy. After health issues made it difficult to maintain premiums, she considered letting it lapse.
Her insurer offered $9,000 in surrender value.
She contacted Summit Life Settlements, and after evaluating the policy, we helped her sell it for $61,000—nearly seven times more than what she would have received otherwise.
She used the funds to cover long-term care planning and finally take the vacation she had been putting off for years.
Is It Legal to Sell a Life Insurance Policy?
Absolutely. Life settlements are fully legal and regulated in most U.S. states. In fact, the right to sell a life insurance policy was upheld by the U.S. Supreme Court in 1911 in the case of Grigsby v. Russell. You’re simply exercising your right to sell personal property.
At Summit, we only work with licensed providers and institutional buyers, ensuring that your transaction is secure, ethical, and 100% transparent.
Why Work With Summit Life Settlements?
Choosing the right partner when selling your life insurance policy can make all the difference — not just in how much you receive, but in how smooth and stress-free the experience is. At Summit Life Settlements, our mission is to help policyholders navigate the life settlement market in order to unlock the highest possible value with integrity, transparency, and personalized support.
Here’s what sets us apart:
✅ Your interests come first – We work exclusively for you, not for the buyers. Our only goal is to secure the highest payout possible, not to collect quick commissions.
🏦 Access to trusted, top-rated buyers – We partner only with licensed, reputable institutional investors who have a proven track record of fair and timely transactions.
💰 Competitive bidding for maximum value – Instead of relying on a single offer, we bring multiple buyers to the table, creating competition that drives up your policy’s market value.
📞 Free, no-pressure consultations – We’ll walk you through your options at no cost or obligation, helping you make an informed decision that aligns with your goals.
🧭 Full-service support from start to finish – From gathering medical and policy records to managing buyer communications and closing, we handle every step of the process for you.
With Summit Life Settlements, you’re not navigating this complex process alone. You’re supported by a team that values clarity, compassion, and results — ensuring you receive the transparency, confidence, and financial outcome you deserve.
👉 Ready to learn what your policy could be worth? Contact Summit Life Settlements today for a confidential consultation and discover how easy it can be to turn your policy into real value.
Final Thoughts
If you’re thinking “I want to sell my life insurance policy,” there’s no better time than now to act. With premiums rising, healthcare needs growing, and life circumstances shifting, your policy could be worth much more than you think.
Summit Life Settlements is here to help you understand your options, navigate the process, and get the payout you deserve.
Frequently Asked Questions
1. Can I really sell my life insurance policy?
Yes. If you no longer need your coverage or the premiums have become unaffordable, you can sell your life insurance policy through a process called a life settlement. This allows you to receive a cash payment that’s typically much higher than the policy’s surrender value.
2. Who qualifies to sell a life insurance policy?
Generally, policyholders aged 65 or older with policies valued at $100,000 or more may qualify. However, younger individuals with serious health conditions might also be eligible through a viatical settlement.
3. What types of policies can be sold?
Most permanent policies—such as universal life, whole life, and variable universal life—qualify. Some term life insurance policies can also be sold, especially if they include a conversion option that allows them to be turned into permanent coverage.
4. How much can I expect to receive from selling my policy?
The payout varies depending on your age, health, policy size, and premium costs, but it’s typically 4–10 times higher than the cash surrender value. The exact amount depends on how much investors are willing to pay for your policy.
5. How does the life settlement process work?
A licensed life settlement broker gathers your policy and medical records, shops them to multiple institutional buyers, and negotiates the best offer. Once you accept an offer, ownership of the policy transfers to the buyer, and you receive a lump-sum payment.
6. Is selling a life insurance policy safe and legal?
Yes. Life settlements are fully regulated in most U.S. states. Working with a licensed brokerage like Summit Life Settlements ensures a transparent process that protects your rights and privacy.
7. Will I owe taxes on the money I receive?
Possibly. The tax implications depend on your total payout, policy basis, and health condition. It’s best to consult a tax advisor or financial professional before finalizing the sale.
8. How long does the process take?
Most life settlement transactions close in 6 to 10 weeks, depending on how quickly medical and policy documents are gathered and reviewed.
9. What happens after I sell my policy?
Once sold, the buyer becomes the new policy owner and is responsible for paying all future premiums. They will receive the death benefit when the insured passes away, while you keep the cash payment from the sale.
10. Why should I use a broker instead of going directly to a buyer?
A broker represents you, not the buyer. This means they shop your policy to multiple licensed buyers, ensuring competitive bids and maximum payout. Going direct typically results in lower offers since you’re negotiating with only one buyer.
