What Is a Life Settlement?
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?
We are more than just a life settlement company—we are your partner and advocate. Here’s why seniors choose Summit:
- We work for you, not the buyers: As a brokerage, we shop your policy around to top institutional investors—not just one.
- Multiple offers = maximum value: Our competitive bidding process ensures you get the best payout, not the fastest.
- Free consultation and no upfront fees: We never charge for reviews, and you’re never obligated to move forward.
- Transparent, supportive guidance: We explain every step in plain language, with no surprises.
Summit Life Settlements is known as one of the most trusted names in senior life settlements, and we are proud to help retirees and families unlock new financial opportunities.
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.
Common Questions About Life Settlements
Yes. Life settlements are regulated by state law and recognized as a legal financial transaction in most U.S. states.
You may owe taxes depending on your cost basis and how much you receive. Consult a tax advisor for specific guidance. is a top priority at Summit.
The buyer becomes the new owner and beneficiary, pays the premiums, and collects the death benefit in the future.
Yes—if it’s convertible to a permanent policy. We can review and advise.
Typically 4 to 6 weeks from start to payout, depending on the complexity of the case.
