Considering Selling Your Life Insurance Policy?

If you’re struggling with high premiums or need extra cash for medical bills, debt, or other expenses, selling your life insurance policy through a Life Settlement or Viatical Settlement could be a smart financial move. This option is especially helpful for seniors whose financial needs have changed.

In this guide, we’ll walk you through:

  • How to decide if selling your policy is right for you

  • Who qualifies and what makes a policy eligible

  • The steps involved in the process

  • Tips to get the best possible offer

  • Important legal and regulatory info to protect your rights

Our goal is to help you feel confident and well-informed every step of the way.

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CAN YOU SELL YOUR POLICY IN A LIFE SETTLEMENT?

Life Settlement Calculator - Life Settlement - close up woman using calculator and laptop on paper graph data with doing work at office. SELL YOUR POLICY

Yes, you can sell your life insurance policy through a Life Settlement or Viatical Settlement. This means you transfer ownership of your policy and its death benefit to a third-party buyer in exchange for a cash payment. This payment is usually more than the policy’s cash surrender value but less than the full death benefit.

The Life Settlement Process can take some time because it involves reviewing your policy and your health. Typically, life settlements pay about 20-30% of the death benefit, while viatical settlements can pay as much as 70-80%. This money can help cover living expenses, medical bills, or other financial needs.

According to the US Government Accountability Office, selling your policy can get you 4 to 10 times more money than simply surrendering it for cash. This makes life settlements a great way to access the value of your policy.

You also have a legal right to sell your life insurance. In the important Supreme Court case Grisby v. Russell (1911), the court ruled that policyholders can sell their policies to pay for care. This decision set a precedent that protects your right to make financial choices about your policy.

Since then, the life settlement industry has grown a lot, with rules and regulations in place to protect policy owners and make sure they get a fair price. These regulations help keep the process fair, transparent, and secure for anyone thinking about a life settlement.

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Changes in Financial Needs

As we age, our financial needs and priorities can change. Selling a life insurance policy can provide an injection of funds to help cover unexpected expenses or address pressing financial concerns.

Lower Monthly Expenses

Premium Payments Are Becoming Unaffordable

Life insurance premiums can increase significantly as we get older, making it difficult for some individuals to keep up with payments. In these cases, selling the policy may be a better option than letting it lapse.

Age and Health Parameters

Terminal Illness Diagnosis

For those facing a terminal illness, selling their life insurance policy can provide financial relief and peace of mind during a difficult time.

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No Longer Needing the Coverage

As we age, our need for life insurance may decrease. Selling the policy in a life settlement can provide funds that can be used for other purposes.

Beneficiaries Are Financially Secure

In some cases, policyholders may choose to sell their policy if their beneficiaries have become financially stable and no longer need the death benefit. This allows the policyholder to benefit from their policy during their lifetime.

Transparent Evaluation Process

Retirement Planning

Life settlements can also be used as a part of retirement planning, providing an additional source of income for individuals in their golden years.

Policy Types Considered

Changes in Estate Planning

As our lives change, so do our estate planning needs. Selling a life insurance policy can provide funds that can be used to purchase new or more appropriate insurance coverage for current financial and familial situations.

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Paying Off Debts

Life insurance policies can also be sold to help pay off debts and alleviate any financial burden on family members or loved ones.

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Starting a Aew Business Venture

Selling a life insurance policy can provide the necessary capital for individuals looking to start a new business venture or invest in other opportunities.

Charitable Giving

For those looking to make a charitable contribution, selling a life insurance policy and donating the funds can have a significant impact on the chosen organization or cause.

LIFE SETTLEMENT ELIGIBILITY CRITERIA

  • Policy must have a minimum face value of $100,000
  • Some states require the life insurance policy be held for at least 2-5 years before being sold
  • Be over the age of 60 or have a serious medical condition that reduces life expectancy
  • Eligible policies usually must be permanent plans (e.g., whole or universal life insurance) 
  • Term life policies must be converted into a permanent plan to be sold or eligible for a viatical settlement
Retained Death Benefits - Friendly relationship between smiling caregiver in uniform and happy elderly woman. LIFE SETTLEMENT ELIGIBILITY CRITERIA

WHY USE A LIFE SETTLEMENT BROKER?

Life Settlement - Broker explaining to senior couple points that make them happy. HOW CAN SUMMIT LIFE SETTLEMENTS HELP

Life Settlement Brokers have the knowledge and experience to help guide you through the process of selling your life insurance policy. They understand the complex steps involved and provide helpful advice on market trends and potential offers.

Because brokers work closely with many life settlement providers, they can connect you with a larger pool of buyers. This gives you a better chance of receiving competitive offers that match your specific needs.

Brokers act as the middleman between you and the buyers. They use their negotiation skills to help you get the highest possible offer for your policy. They know how to explain your policy’s value clearly and effectively, making sure buyers see its worth.

Working with a broker can also save you time and money. They handle everything—from the paperwork to the negotiations—so you can focus on what matters most. Most brokers don’t charge upfront fees. Instead, they’re paid a commission from the final sale, which means their success is tied to getting you the best deal.

If you’re thinking about selling your life insurance policy, it’s smart to work with a reputable and experienced broker like Summit Life Settlements. Our team is committed to helping you get the maximum value from your policy. Contact Us today to see how we can help you unlock your policy’s hidden value. Let Summit be your trusted partner in this important financial decision.

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Maximized Financial Return

Competitive Bidding: Brokers can engage multiple buyers, fostering a competitive bidding environment that can significantly enhance the policy’s sale price.
Market Expertise: With their deep knowledge of the life settlement market, brokers can secure the best possible offer.

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Professional Guidance

Expert Advice: Brokers offer expert advice throughout the process, helping policyholders navigate complexities and make informed decisions.
Regulatory Compliance: They ensure transactions comply with all regulatory requirements, protecting the policyholder’s interests.

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Simplified Process

End-to-End Service: Brokers manage the entire process, from initial valuation to final sale, streamlining the experience for policyholders.
Documentation and Paperwork: They handle all necessary paperwork and documentation, ensuring accuracy and efficiency.

Access to a Broad Network

Wide Reach: Brokers have connections to a broad network of potential buyers, including institutional investors, increasing the likelihood of a successful sale.
Specialized Buyers: They can identify buyers who specialize in specific types of policies, such as universal or whole life insurance.

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Confidentiality

Confidentiality is paramount. Brokers understand the sensitive nature of these transactions and take measures to protect their clients’ privacy.

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Peace of Mind

The life settlement process can be complex and overwhelming. Working with a reputable broker provides peace of mind, ensuring transactions are handled professionally and efficiently.

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Ethical Standards

Reputable life settlement brokers adhere to strict ethical standards set by industry associations, ensuring clients are treated fairly and their best interests are prioritized.

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No Upfront Costs

Life settlement brokers typically work on a contingency basis, earning payment only when the transaction is complete. This removes upfront costs for clients and motivates brokers to secure the best deal.

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Managing Legal and Administrative Tasks

Life settlements involve significant paperwork, legal agreements, and regulatory compliance. Brokers handle these tasks, ensuring that transactions are efficient and legally sound.

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Regulatory Compliance

Life settlement brokers must follow strict regulations set by state and federal authorities, operating ethically in their clients’ best interests. This gives clients peace of mind throughout the process.

LIFE SETTLEMENT BROKER PROCESS WITH SUMMIT LIFE SETTLEMENTS

Summit Life Settlement

Initial Consultation and Evaluation

Consultation: The process starts with an initial meeting where the broker gathers information about the policyholder and the policy.
Evaluation: The broker conducts a preliminary assessment to determine if the policy is suitable for a life settlement.

Summit Life Settlement

Policy Review and Documentation

Document Collection: The broker collects essential documents, including the policy and medical records.
Review and Analysis: A thorough review is conducted to assess the policy’s value and market interest.

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Marketing and Bidding Process

Marketing: The broker markets the policy to potential buyers.
Bidding: Buyers submit bids, and the broker facilitates a competitive process to maximize the sale price.

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Offer and Negotiation

Offer Presentation: The broker presents the best offers to the policyholder.
Negotiation: The broker may negotiate with buyers to improve the offers.

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Sale Agreement and Closing

Agreement: Once an offer is accepted, the broker helps draft and finalize the sale agreement.
Closing Process: This includes transferring ownership of the policy and disbursing funds to the policyholder.

Summit Life Settlement

Overall Time Frame (6-12 weeks)

Through the Summit Life Marketplace, a process that normally takes months can be reduced to weeks. Our goal is to complete the transaction within 6 to 12 weeks. This timeline may vary based on the complexity of the policy, the responsiveness of the buyer, and the efficiency of the documentation.

HOW CAN SUMMIT LIFE SETTLEMENTS HELP?

At Summit Life Settlements, we take pride in being an innovative and knowledgeable life settlement brokerage with extensive industry experience. Our dedicated team works with a strong network of licensed institutional buyers to secure the highest possible offers for your life insurance policy. This means you get the maximum financial return, while enjoying peace of mind, knowing you’re working with professionals who prioritize your best interests.

Our cutting-edge Summit Life Marketplace is built to help policyholders get the most value for their life settlements in a simple, stress-free way. We understand that the life settlement process can feel overwhelming, especially with complex terms and steps—that’s why we’re here to make it easy.

Through our Summit Marketplace, we connect policyholders directly with qualified buyers, allowing for efficient, transparent transactions that always focus on what’s best for our clients. We’re committed to building trust by offering honest, unbiased evaluations of your policy’s worth.

Our team takes the time to carefully assess your policy, explain its potential value, and keep you informed at every stage of the settlement process. With Summit, you’ll have the confidence of knowing you’re backed by experienced professionals who are fully invested in your success.

Contact Us today to find out how we can help you unlock the full potential of your life insurance and take the next step toward a more secure financial future.

A broker can help navigate the complex process, connect you with potential buyers, and negotiate the best terms for your life insurance policy.

Brokers consider factors such as your age, health condition, policy type, and face value to determine the policy’s market value.

Most policies, including term, whole life, and universal life, can potentially be sold through a broker, though eligibility criteria may vary.

Brokers typically charge a commission or fee, which is negotiated as a percentage of the final settlement amount. The fee structure should be transparent.

The timeline varies, but using a broker can expedite the process, usually taking several weeks to a few months from initiation to completion.

Depending on the terms of the agreement, you may have a limited window to change your mind. It’s crucial to understand the terms before signing any agreements.

Brokers leverage their expertise to negotiate with potential buyers, ensuring that you receive the highest possible offer for your life insurance policy.