What is a Life Settlement?
A life settlement is the legal sale of your life insurance policy to a third party—typically institutional investors—for a lump-sum cash payment. You receive more than the surrender value, and the buyer takes over premiums and becomes the beneficiary.
The transaction is handled through either:
- Life settlement providers: licensed buyers who purchase policies.
- Life settlement brokerages: licensed intermediaries who connect sellers to multiple providers for the best offer.
What is a Life Settlement? Life Settlement Providers vs. Life Settlement Brokerages
Understanding the difference between life settlement providers and life settlement brokerages is essential when researching life settlement companies. Although both play key roles in the life settlement marketplace, they serve very different purposes — and choosing the right one can significantly impact how much you receive for your policy.
Life Settlement Providers
Providers are the entities that purchase life insurance policies directly from policyholders on behalf of investors or investment funds. They represent the buyer’s interests and typically make a single offer based on their investment criteria and expected returns. Since providers are competing to buy policies at the best price for their investors, their goal is to acquire policies for as little as possible while still meeting regulatory and underwriting standards.
Life Settlement Brokerages
A life settlement broker, on the other hand, works exclusively for you—the policyholder. A broker’s role is to create competition among multiple licensed providers by bringing your policy to market and securing bids from multiple buyers. The brokerage then reviews the offers, negotiates terms, and helps you select the highest and most favorable offer.
At Summit Life Settlements, we manage this entire process for you—from gathering policy and medical records to organizing the bidding process and finalizing the sale. Our goal is simple: to maximize the market value of your life insurance policy while keeping the process transparent and stress-free.
Which Option Delivers Better Results?
Working with a life settlement brokerage almost always leads to better financial outcomes. By exposing your policy to a wider pool of potential buyers, you create competition and drive up the final sale price.
Think of it like selling a home:
Would you rather sell to the first buyer who makes an offer—or list it on the open market and attract multiple bids? In the life settlement world, a brokerage ensures your policy gets the exposure it deserves, helping you walk away with the highest possible payout.
Why Work with a Life Settlement Brokerage?
Here’s why a licensed brokerage like Summit Life Settlements often delivers better outcomes than working with a direct buyer:
- Access to multiple buyers: Instead of one offer, you get several.
- Market competition: Buyers know they’re bidding against others, which increases your payout.
- Professional advocacy: A good brokerage will guide you through conversion (for term policies), underwriting, legal paperwork, and closing.
- No pressure: You’re under no obligation to accept an offer.
We don’t work for the buyer. We work for you.
What Makes the Best Life Settlement Companies?
If you’re looking for the best life settlement companies, here are five signs to watch for:
- Transparent Process: The company should explain the entire life settlement process clearly, with no hidden fees or vague timelines.
- Free Appraisals: You shouldn’t have to pay to find out what your policy is worth. Reputable brokerages will offer a no-cost, no-obligation valuation.
- Licensed in Your State: Life settlement companies are regulated at the state level. Always verify that the company is licensed to operate in your state.
- Marketplace Access: The best brokerages maintain strong relationships with multiple institutional buyers, creating competition for your policy.
- Excellent Support: A true partner will support you through every step, from documentation and conversion to offer selection and payment.
Summit Life Settlements checks every one of these boxes.
How a Life Settlement Calculator Can Help
Before getting a formal appraisal, many people start with a life settlement calculator. These tools ask for basic info—like your age, policy size, and health status—and give an estimated payout range.
While useful for early-stage exploration, calculators are only estimates. To know your true policy value, you’ll need a professional review from a trusted brokerage.
Summit offers both—a free calculator and a more accurate, personalized appraisal.
How the Summit Life Settlements Process Works
Here’s how we make things simple, fast, and fair:
- Submit Your Policy: We review your policy for free and estimate its eligibility and market value.
- Convert If Needed: If your policy is convertible term, we help you convert it to permanent coverage so it can be sold.
- Underwriting & Appraisal: Our team evaluates your health and policy in detail, creating a strong seller profile.
- Marketplace Bidding: We present your policy to multiple life settlement providers who compete to make you the best offer.
- Offer Review: We explain each offer in plain terms so you can make a confident decision.
- Sale & Payment: After you accept an offer, paperwork is completed, and funds are sent to you—usually within days.
There’s no obligation at any point. Just answers, clarity, and real options.
Why Choose Summit Life Settlements Over Other Companies?
We know you have choices when it comes to selling a life insurance policy. So why do policyholders across the country consistently turn to Summit Life Settlements? Because we focus entirely on your needs, your results, and your peace of mind. Here’s what sets us apart:
1. Client-First Approach
At Summit, you come first. We don’t push policies or pressure you to sell. Instead, we take the time to understand your situation, your goals, and the unique details of your life insurance policy. Every recommendation is made with your best interest in mind, ensuring you feel confident every step of the way.
2. Transparent Offers
We believe in full transparency. From the initial evaluation to the final bid, you see all the details up front. Every offer, every fee, and every term is clearly presented — no surprises, no hidden conditions. This ensures you can make informed decisions with confidence.
3. Marketplace Advantage
Unlike providers who make a single offer, Summit connects your policy to multiple licensed institutional buyers, creating competition. This marketplace approach allows you to maximize the value of your policy, often resulting in significantly higher payouts than you would get through a single buyer.
4. Conversion & Policy Support
Some policies require additional steps to become saleable, such as converting a term policy to a permanent plan. Summit provides hands-on support throughout the process, including policy restructuring guidance and carrier communication. We remove the complexity so you can focus on what matters — accessing the cash value you deserve.
5. Trusted Nationwide
Policyholders across the U.S. trust Summit for our professionalism, clarity, and results. We have built a reputation for honest advice, smooth transactions, and exceptional service, making us a preferred choice for seniors and financial professionals alike.
Our Mission in One Sentence:
We exist for one reason — to help you to navigate the life settlement market to unlock the full value of a policy you no longer need, safely, efficiently, and with complete confidence.
Final Thoughts
If you’re serious about exploring your options, don’t settle for a single offer. Don’t risk working with a company that hides fees or limits your control.
When comparing life settlement companies, choose the one that works for you—not for investors. Summit Life Settlements is a licensed, experienced life settlement brokerage that delivers clarity, competition, and cash value—all on your terms.
Whether you’re just curious or ready to act, we’re here to help.
👉 Start with a free review here
Common Questions About Life Settlements
1. What is a life settlement?
A life settlement is the sale of an existing life insurance policy to a licensed third-party buyer for a lump-sum cash payment. The buyer assumes responsibility for future premiums and receives the death benefit when the insured passes away. The seller receives an immediate payout—typically far greater than the policy’s surrender value.
2. Who qualifies for a life settlement?
Life settlements are generally best suited for seniors, typically aged 65 or older, who have a life insurance policy with a face value of $100,000 or more. However, younger policyholders with serious health conditions that shorten life expectancy may also qualify.
3. What types of policies can be sold?
Most permanent life insurance policies—such as universal life, whole life, and variable life—qualify. Some convertible term policies may also be eligible, but only if they can be converted to a permanent plan before the conversion period expires.
4. How much is my policy worth in a life settlement?
The value depends on several factors, including:
The insured’s age and health
The policy’s death benefit amount
Premium costs and cash value
The type of policy and carrier
Market conditions and investor demand
Typically, life settlement offers range from 10% to 60% of the policy’s face value, depending on these factors.
5. What is the process for selling a life insurance policy?
The process generally includes:
Initial evaluation – Determine eligibility based on age, policy type, and health.
Documentation – Submit medical records and policy details.
Bidding process – Brokers solicit offers from licensed buyers.
Offer review – Seller reviews the best offers and selects one.
Closing – Funds are transferred to escrow, ownership changes hands, and the seller receives payment.
6. How long does the process take?
A typical life settlement takes about 30 to 90 days, depending on how quickly policy and medical records are obtained and how long the bidding and underwriting process takes.
7. Are life settlements regulated?
Yes. Most U.S. states regulate life settlements to protect policyholders. Licensed brokers and providers must comply with strict disclosure, licensing, and privacy requirements.
8. Will I owe taxes on the money I receive?
In most cases, a portion of the proceeds may be taxable, depending on the policy’s cost basis and gain. It’s best to consult a tax professional for specific guidance.
9. Is a life settlement the same as a viatical settlement?
Not exactly. A viatical settlement involves selling a policy when the insured is terminally or chronically ill, while a life settlement generally applies to seniors with average or declining health who no longer need or want their coverage.
10. Why work with a life settlement broker like Summit Life Settlements?
A licensed broker like Summit Life Settlements represents the policyholder—not the buyer. We gather your records, manage the entire bidding process, and secure competitive offers from multiple licensed institutional buyers to ensure you get the maximum value for your policy.
