Can I Sell My Life Insurance Policy? Discover What You Need to Know
If you no longer need your life insurance policy—or can no longer afford the premiums—you may be surprised to learn that your policy could have real market value. Instead of surrendering or lapsing it for little or nothing, you may have the option to sell your policy through a life settlement and receive a lump-sum cash payment that’s often far greater than the cash surrender value.
In this guide, we’ll walk you through everything you need to know about selling your life insurance policy: how it works, who qualifies, how much you might receive, and whether it’s the right choice for you. We’ll also cover key differences between life settlements and viatical settlements, and explain how Summit Life Settlements can help you navigate the process with transparency and support.
If you’re asking, “Can I really sell my life insurance policy?”—you’re in the right place.
Why Would Someone Want to Sell Their Life Insurance Policy?
There are several common reasons:
- The original need for coverage no longer exists.
- Premiums have become too expensive.
- Retirement planning calls for more liquidity.
- Medical bills or long-term care costs are rising.
- You simply want to stop paying into a policy and extract its value now.
Whatever your reason, the idea to sell your life insurance policy may be more than a possibility—it could be the smartest financial move you make this year.
Can I Really Sell My Life Insurance Policy?
Yes, you can. However, there are a few requirements that need to be met. Generally, most people who successfully sell their policies meet the following conditions:
- You are over the age of 65.
- Your life insurance policy has a death benefit of $100,000 or more.
- Your health has changed since the policy was issued.
- Your policy is either permanent or a convertible term policy.
If your policy is a convertible term policy, it can be changed into a permanent policy before being sold. Summit Life Settlements helps you determine eligibility and guides you through that conversion process if needed.
What Type of Policies Can Be Sold?
Not every policy can be sold, but many can. The most commonly sold policies include:
- Universal Life
- Whole Life
- Variable Life (in some cases)
- Convertible Term Life
If you’re unsure whether you can sell your insurance policy, Summit offers free reviews to evaluate your specific case.
How Do You Sell Life Insurance? Step-by-Step Process
- Initial Consultation
We start by reviewing your policy and medical background. This initial step is completely free and without obligation. - Policy Review & Documentation
You’ll provide us with documents including the policy itself, medical history, and personal details. - Conversion (If Required)
If your term policy is convertible, we’ll help you convert it into a permanent policy so it can be sold. - Underwriting
Our expert team evaluates your health history and policy status to determine its fair market value. - Marketplace Bidding
Your policy is listed on our competitive bidding platform, attracting licensed institutional buyers. - Offers and Review
We’ll present all offers and guide you through each one so you can choose the best fit. - Final Sale and Payment
Once an offer is accepted, paperwork is completed, ownership is transferred, and funds are released—typically within days.
Why Choose Summit Life Settlements?
At Summit Life Settlements, we go beyond traditional life settlement brokers. We operate as a dedicated life settlement marketplace, giving you direct access to a broad network of licensed institutional buyers who actively compete to purchase your policy. This ensures you receive multiple, competitive offers—not just one—helping you unlock the highest possible value.
What sets us apart:
Marketplace Advantage – Unlike single-buyer firms, we connect your policy to a full network of vetted institutional investors. This increases competition and raises your payout potential.
Hands-On Guidance – Our experienced team will help you understand the Life Settlement Market by walking you through every step of the process—from eligibility evaluation and medical underwriting to reviewing offers and completing the sale.
No Upfront Fees or Commitments – You don’t pay a thing to explore your options. There are zero fees to get started, and no obligation to move forward unless the offer meets your needs.
Full Transparency – We’re committed to educating you about the pros, cons, and alternatives to selling your policy. You’ll never feel pressured—only supported.
Selling your life insurance policy is a major financial decision. That’s why we focus on delivering a clear, ethical, and personalized experience that prioritizes your best interests, not the buyer’s. When you work with Summit Life Settlements, you gain a partner who’s truly on your side.
Let us help you take control of your policy—and your financial future.
Real-World Example: John’s Story
John, age 74, owned a $300,000 universal life insurance policy. He no longer needed the coverage, but the premiums were cutting into his retirement savings.
After contacting Summit Life Settlements, his policy was reviewed and found eligible. Within four weeks, he received four offers and accepted one for $65,000. John stopped paying premiums immediately and used the payout to cover medical costs and boost his monthly income.
How Much Is My Policy Worth?
That depends on factors like:
- Your age and health
- Policy type
- Death benefit amount
- Annual premium
- Policy conversion details (for term policies)
You can use Summit’s internal tools or speak with a specialist for a free, personalized appraisal.
Final Thoughts
If you’re asking yourself, “Can I sell my life insurance policy?”—the answer may be yes. Summit Life Settlements is here to help you explore that possibility, understand the true value of your policy, and make a confident financial decision.
You worked hard to pay into your coverage. Let us help you turn it into something meaningful for your future.
👉 Start here with a free, no-obligation review of your policy.
FAQs: Can I Sell My Life Insurance Policy?
1. Can I really sell my life insurance policy?
Yes. If you meet certain criteria, you may qualify for a life settlement—a legal transaction where you sell your policy to a third party for a lump sum that’s greater than the cash surrender value but less than the death benefit.
2. Who qualifies to sell a life insurance policy?
Most buyers look for individuals who are:
Age 65 or older, or
Have a serious health condition (regardless of age)
Own a policy with a face value of $100,000 or more
Younger policyholders may qualify if their health has significantly declined since the policy was issued.
3. What types of policies can be sold?
Most permanent policies like universal life, whole life, and variable life are eligible. Convertible term policies can also qualify if they are converted to permanent coverage before the sale.
4. How much money will I get if I sell my policy?
The payout depends on several factors, including your age, health, policy size, premiums, and type of policy. On average, sellers receive 20% to 60% of the death benefit.
5. Do I still have to pay premiums after selling the policy?
No. Once the sale is complete, the buyer becomes the new owner and takes over all future premium payments.
6. Is selling my policy better than surrendering it?
In most cases, yes. A life settlement often yields significantly more than the policy’s cash surrender value—sometimes by tens of thousands of dollars or more.
7. Is the process confidential?
Yes. Reputable brokers and providers handle your medical and financial information with strict confidentiality and in accordance with privacy laws.
8. Will selling my policy impact my taxes or benefits?
It may. Proceeds from a life settlement could be taxable and might affect eligibility for Medicaid or other needs-based programs. Always consult a tax or financial advisor.
9. Can I change my mind after selling my policy?
Most states offer a rescission period (typically 15 to 30 days) where you can cancel the transaction and return the funds. After that, the sale is final.
10. Why work with a life settlement broker like Summit Life Settlements?
A licensed broker represents your best interests, shops your policy to multiple buyers, and works to secure the highest possible offer. Summit Life Settlements offers a transparent, hands-on process and access to our exclusive Summit Life Marketplace to help you get the best value for your policy.
