Selling Your Life Insurance Policy: What You Need to Know to Maximize Its Value
For many seniors and policyholders, life insurance was purchased decades ago with a clear purpose—providing financial support to loved ones in case of death. But life changes. And so do financial needs. If you’re holding a life insurance policy you no longer want, need, or can afford, a life settlement may offer the financial freedom you’ve been looking for.
At Summit Life Settlements, we help people just like you understand the value of their policies—and guide them through the life settlement process with confidence and clarity.
What Is a Life Settlement?
A life settlement is the legal sale of your existing life insurance policy to an institutional buyer in exchange for a lump-sum cash payment. The buyer becomes the new policy owner, takes over the premium payments, and eventually receives the death benefit.
You, the original policyholder, receive a cash payout that is significantly higher than the policy’s surrender value—and you’re no longer responsible for premiums.
It’s a powerful financial option that allows you to tap into the real value of your policy while you’re still alive.
Who Are Life Settlements For?
While anyone can explore their eligibility, life settlements are most common among:
- Seniors aged 65 and older
- Individuals with deteriorating health conditions
- Policyholders with universal, whole, or convertible term policies
- Those with policies valued at $100,000 or more
The process is also increasingly popular among estate planners, financial advisors, and seniors looking to reduce costs or increase liquidity in retirement.
If you’ve been asking yourself, “what is a life settlement and does it apply to me?”—Summit can help answer that with a quick, obligation-free review.
Why Seniors Choose Life Settlements
Senior life settlements have grown in popularity for a variety of reasons:
- Rising medical or long-term care costs
- Premiums becoming unaffordable on fixed income
- No longer needing the policy (children are grown, spouse has passed, etc.)
- Wanting to turn a dormant asset into immediate usable cash
- A desire to support family, pay off debt, or enjoy retirement more comfortably
Instead of letting a policy lapse or surrendering it for a small return, selling it can offer real financial impact.
Real Example: A Life-Changing Decision
Linda, age 72, had a $250,000 universal life insurance policy. She was considering letting it lapse due to premium costs.
Instead, she contacted Summit Life Settlements. After a brief review, we submitted her policy to our network of licensed buyers. She received a payout offer of $62,000—far exceeding the $8,000 her insurer would have provided in surrender value.
That money allowed her to eliminate credit card debt and enjoy the retirement she worked hard for.
How Does a Life Settlement Work?
The process is simpler than most people expect. Here’s how it works with Summit:
- Free Policy Review – We assess your eligibility based on policy type, face value, health history, and premium cost.
- Market to Institutional Buyers – We connect your policy to licensed buyers and negotiate competitive offers on your behalf.
- Choose Your Best Offer – You receive multiple offers and can choose the best one—or decide not to move forward.
- Close and Get Paid – Once you accept an offer, we handle all the paperwork. Your cash payment typically arrives within 4–6 weeks.
There’s no cost for the evaluation, and no pressure to sell.
What Is the Value of a Life Settlement?
Your life insurance policy is worth more than you might think. In most cases, a life settlement offers 2–5x more than the policy’s surrender value.
Here are a few variables that influence your policy’s value:
- Your age and health
- Type of policy (whole, universal, or term)
- Policy face value and premium costs
- Length of time the policy has been in force
Why Summit Life Settlements?
At Summit Life Settlements, we are more than just a life settlement company — we are your dedicated advocate, guide, and partner through every step of the life settlement process. Our mission is to educate policyholders about the life settlement market, empowering them with clarity, confidence, and control over one of their most valuable financial assets — their life insurance policy.
Here’s why so many seniors, families, and financial professionals choose Summit:
✅ We work for you — not the buyers.
As a licensed life settlement brokerage, our sole responsibility is to represent your best interests. We don’t buy policies ourselves. Instead, we shop your policy among top institutional buyers nationwide to generate competing offers and secure the highest possible value for you.
💰 Multiple offers mean maximum value.
Unlike direct buyers who make just one offer, we create a competitive bidding environment where multiple investors compete for your policy. This process consistently results in higher payouts — often several times more than the policy’s surrender value.
🆓 No cost, no obligation, ever.
You’ll never pay upfront fees for our review or consultation. We provide a free policy evaluation to determine eligibility and potential value. You decide whether to move forward — with no pressure and no hidden costs.
🤝 Transparent, supportive guidance.
From your first conversation to closing, our team explains every step in plain, straightforward language. We believe in complete transparency and are always available to answer questions or clarify details, ensuring you feel informed and confident at every stage.
🌄 A trusted name in life settlements.
Summit Life Settlements has built its reputation on integrity, professionalism, and results. We are proud to be one of the most trusted names in senior life settlements, helping retirees and their families unlock meaningful financial opportunities — from supplementing retirement income to funding healthcare, long-term care, or simply enjoying life with greater peace of mind.
Is a Life Settlement Right for You?
Selling your life insurance policy is a personal decision—but it’s one that could provide immediate financial relief and long-term peace of mind.
If you’re paying into a policy you no longer need or want, it may be time to consider a better option.
At Summit Life Settlements, we help you unlock the hidden value in your policy—so you can live more comfortably and make informed financial decisions for the future.
Your policy may be worth far more than you think.
Contact Summit Life Settlements or try our free calculator to explore your options.
FAQs: Selling Your Life Insurance Policy
1. What does it mean to sell your life insurance policy?
Selling your life insurance policy, also known as a life settlement, means transferring ownership of your policy to an institutional investor in exchange for an immediate cash payment. After the sale, the buyer becomes responsible for paying the premiums and receives the death benefit when the insured passes away.
2. Who is eligible to sell their life insurance policy?
Most people who qualify for a life settlement are 65 or older and have a policy with a death benefit of $100,000 or more. However, younger individuals with serious health conditions may also qualify. Policy types that can be sold include universal life, whole life, variable life, and convertible term insurance.
3. How much can I get for my life insurance policy?
The amount depends on several factors, including your age, health, policy type, death benefit, and premium costs. On average, life settlements pay four to ten times more than the policy’s cash surrender value, though every case is unique.
4. Why should I use a life settlement broker instead of selling directly to a buyer?
A broker works for you, not the buyers. Brokers like Summit Life Settlements create a competitive bidding process by shopping your policy to multiple institutional investors. This ensures you receive the highest possible offer, while a direct buyer provides only one offer — often below market value.
5. Are there any fees or obligations to get a quote?
No. A reputable life settlement broker offers a free, no-obligation consultation. You pay nothing upfront, and you’re not required to accept any offer. Brokers are typically compensated by the buyer only if a sale closes.
6. Will I still need to pay premiums after selling my policy?
No. Once the policy is sold, the buyer becomes responsible for all future premiums. You’ll receive your lump-sum payment, and your financial obligation to the policy ends.
7. What happens to the death benefit after the sale?
When you sell your policy, the buyer becomes the new owner and beneficiary. That means your beneficiaries will no longer receive the death benefit. However, in some cases, sellers can retain a portion of the death benefit (called retained death benefit) as part of the agreement.
8. Is selling a life insurance policy taxable?
In most cases, part of the proceeds may be subject to taxes, depending on how much you’ve paid in premiums and your policy’s cash value. It’s best to consult a tax advisor or financial planner for guidance on your specific situation.
9. How long does the life settlement process take?
Most transactions take about 6 to 12 weeks, depending on how quickly your insurance carrier provides documentation and medical records are reviewed. Summit Life Settlements keeps you updated throughout every step of the process.
10. What can I use the money for after selling my policy?
There are no restrictions on how you use your settlement funds. Many sellers use the money to supplement retirement income, pay for long-term care, eliminate debt, or invest in other financial priorities.
11. Will selling my policy affect my government benefits?
In some cases, a life settlement could affect eligibility for Medicaid or other needs-based programs. It’s important to review your financial situation with a qualified advisor before completing a sale.
12. Is the life settlement industry regulated?
Yes. Most U.S. states have strict regulations to protect policyholders. Licensed brokers and providers must follow state laws to ensure transparency, fair dealing, and consumer protection throughout the process.
13. What makes Summit Life Settlements different?
Summit Life Settlements is an independent, client-first brokerage that works exclusively for policyholders — never buyers. We use a transparent, competitive process to help you maximize your policy’s value, with no upfront fees and no obligation to sell.
