Yes, you can sell your life insurance policy through a life or viatical settlement. This process involves transferring ownership and the death benefit of your policy to a third-party buyer in exchange for a cash payment. This payment is usually higher than the policy’s cash surrender value but lower than its death benefit.
The life settlement process may take some time, as it requires evaluating your policy and health status. Selling your life insurance policy in a life settlement can yield about 20-30% of the death benefit, whereas viatical settlements can yield up to 70-80%, providing funds for living expenses, medical bills, or any other financial needs. It’s a flexible option that can offer financial relief in times of need.
According to the U.S. Government Accountability Office, selling a policy can result in a payout 4-10 times higher than the cash surrender value, on average. This significant increase can greatly benefit policyholders looking to access the value of their life insurance.
Your right to sell your life insurance policy is legally protected. In the important Supreme Court Case Grisby v. Russell (1911), the court ruled that patients could sell their policies to pay for care. This decision established a critical precedent, ensuring that policyholders have the autonomy to make financial decisions that suit their needs. Since then, the life settlement industry has expanded significantly, with regulations in place to protect policy owners and ensure fair market value. These regulations help maintain transparency and fairness, creating a secure environment for those considering a life settlement.
