Selling your life insurance policy through a Life Settlement or Viatical Settlement can provide significant financial relief for those facing high premiums or needing extra funds for medical expenses, debt repayment, or improving their quality of life. This option is especially appealing for seniors burdened by costly premiums or those who have experienced changes in their financial situation.

In this guide, we’ll help you determine if selling your policy is the right choice, assess your eligibility, and outline the steps involved so you know what to expect. We will also provide tips for navigating the negotiation process to secure the best offer for your policy and address any legal or regulatory aspects to protect your interests throughout the transaction.

Life Settlement Tax - Couple signing documents at notary public office

CAN YOU SELL YOUR POLICY IN A LIFE SETTLEMENT?

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 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% where as a viatical settlements can yield up to 70-80% of the death benefit, 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 US Government Accountability Office, selling a policy can result in a payout 4-10x 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.

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 Benefit - 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 extensive knowledge and experience in the industry, making them well-equipped to navigate the complexities of the process. They guide policyholders through each step while providing valuable insights into market trends and potential offers. With established relationships with life settlement providers, brokers can access a wider pool of potential buyers, increasing the chances of receiving competitive offers tailored to your needs.

Acting as intermediaries between Insurance policy broker and buyers, brokers use their negotiation skills to secure the best price for the policy. They understand its value and communicate this effectively to prospective buyers, maximizing the offer amount. Additionally, working with a life settlement broker can save policyholders time and money.

Brokers handle all aspects of the transaction—from paperwork to negotiations—allowing policyholders to focus on other important matters. Typically, brokers are compensated through a commission from the final sale amount, meaning no upfront costs for their services.

With their expertise and commitment, life settlement brokers can achieve the best outcomes for policyholders looking to sell their life insurance policies. If you’re considering this option, it’s advisable to enlist a reputable and experienced life settlement broker like Summit. Our team is dedicated to providing exceptional service and securing the highest possible offer for your policy. Contact Us today to discover how we can help you unlock the hidden value in your life insurance. Let Summit be your trusted partner in maximizing the potential of your policy.

LIFE SETTLEMENT BROKER PROCESS WITH SUMMIT LIFE SETTLEMENTS

HOW CAN SUMMIT LIFE SETTLEMENTS HELP?

At Summit Life Settlements, we pride ourselves on being an innovative and knowledgeable life settlement brokerage with extensive industry experience. Our dedicated team maintains a strong network of licensed institutional buyers to secure the highest offers for your life insurance policy. This maximizes your financial return while ensuring peace of mind throughout the process, knowing you’re working with professionals who prioritize your interests.

Our cutting-edge Summit Life Marketplace is designed to help policyholders obtain the highest value for their life settlements in a hassle-free way. We understand that navigating the life settlement landscape can be challenging, with complex terms that may overwhelm policyholders. That’s why we simplify and streamline the process. Through our Summit Marketplace, we connect policy owners with qualified buyers, facilitating efficient transactions that prioritize our clients’ best interests.

We focus on building trust with our clients by providing honest and unbiased evaluations of their policies. Our team carefully assesses each policy and offers clear explanations of its potential value and marketability, keeping clients informed about their settlement progress at every stage. With us, you can navigate the complexities of life settlements with confidence, knowing you have a team of experts advocating for your best interests.

Contact Us today to discover how we can help you unlock the full potential of your life insurance and pave the way for 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.