Understanding the Life Settlement Market
The market where life insurance policies are bought and sold is called the life settlement market. In this secondary market, policyholders sell their existing policies to a third party—usually for a lump sum that is more than the cash surrender value, but less than the death benefit.
Once sold, the buyer becomes the new policy owner, takes over premium payments, and receives the death benefit when the insured passes away.
Who Buys Life Insurance Policies?
There are several types of companies that buy life insurance policies, and each plays a unique role in the market:
- Institutional Investors
Large investment firms, pension funds, and asset managers that purchase policies as part of diversified investment portfolios. They often work through life settlement providers or brokers. - Life Settlement Providers
Licensed entities that directly purchase policies from individuals and resell them to investors. Providers evaluate policies, make offers, and handle much of the transaction logistics. - Life Settlement Brokers
Brokers act as intermediaries between sellers and multiple providers or investors. They shop your policy around to generate competing offers, aiming to get you the best deal. - Private Investment Entities
High-net-worth individuals and private investment groups occasionally buy life insurance policies as alternative long-term investments. - Life Settlement Platforms (Like Summit)
Summit Life Settlements offers a complete platform that helps you access vetted, licensed buyers from all these categories. You benefit from competitive offers and expert guidance without having to navigate the market alone.
What Do Life Insurance Policy Buyers Look For?
Not every policy qualifies for a buyout. Buyers typically look for these characteristics:
- Policy Type: Whole life, universal life, and convertible term policies are the most commonly purchased.
- Policy Size: Generally, face values of $100,000 or more are preferred.
- Age of Insured: Individuals over 65 years old are ideal candidates.
- Health Conditions: Buyers are more interested in policies where the insured has moderate to serious health issues, as this affects the policy’s life expectancy and value.
Summit Life Settlements evaluates these factors for you—confidentially and with no obligation—to determine whether your policy qualifies.
How Does a Life Insurance Buyout Work?
The life insurance buyout process is simple and structured to protect both buyers and sellers. Here’s what to expect:
- Step 1: Initial Policy Review
You submit your policy information to Summit Life Settlements for a free, no-obligation review. - Step 2: Health Assessment
We gather some basic medical records to help buyers estimate the life expectancy of the insured. This is essential in determining your policy’s market value. - Step 3: Marketplace Evaluation
Your policy is then presented to multiple life insurance policy buyers on our platform. - Step 4: Offers and Negotiation
We collect offers from licensed companies and present them to you in a clear format. If needed, we negotiate on your behalf. - Step 5: Acceptance and Closing
Once you accept an offer, the buyer assumes responsibility for the premiums, and you receive a lump sum payment—often within 4–6 weeks.
List of Companies That Buy Life Insurance Policies
While we don’t endorse or promote specific outside companies here, we want you to understand the types of entities involved in this industry. Summit Life Settlements works only with:
- Licensed life settlement providers
- Established institutional buyers
- Compliant entities in regulated states
- Reputable brokers and intermediaries
Working through our platform ensures you’re never dealing with unvetted or predatory buyers. Your protection and payout are our priority.
Can Anyone Buy My Life Insurance Policy?
No. Only licensed buyers in regulated states are legally allowed to purchase life insurance policies. That’s why working with a trusted intermediary like Summit is so important. We make sure your transaction is fully compliant and handled by professionals.
Additionally, not all policies are eligible for sale. We recommend submitting your details for a free review so we can advise you honestly based on your age, health, and policy features.
Real Example: Mark’s Life Insurance Buyout Journey
Mark, 70, had a universal life insurance policy with a $500,000 death benefit. The surrender value was just $12,000—but he no longer needed the coverage.
Through Summit, he accessed multiple life insurance policy buyers, received five offers, and ultimately sold the policy for $74,000—over six times the surrender value. The entire process took just over a month, and he used the proceeds to fund his retirement plans.
Why Work with Summit Life Settlements?
When asking “who buys life insurance policies?”, it’s just as important to ask “who helps you sell one safely?”
At Summit, we stand out by offering:
- Direct access to multiple top-tier buyers
- Expert guidance at no cost to you
- Free, fast policy reviews
- Secure, compliant transactions
- No hidden fees—ever
We do the work, so you don’t have to guess who to trust or settle for a lowball offer.
Final Thoughts
The world of life insurance buyouts can seem complicated, but the truth is simple: there are many companies that buy life insurance policies, but only a few can be trusted to offer full value, transparency, and care.
Summit Life Settlements is your partner in this process. We connect you to verified buyers, protect your interests, and ensure you receive the best possible return—without the headaches.
👉 Start your free, no-obligation policy evaluation now
Frequently Asked Questions
Yes, once you receive multiple offers, you can review the terms and choose the offer that best suits your needs.
Absolutely—when done through licensed platforms like Summit, the process is legally regulated, secure, and transparent.
We only work with regulated, vetted entities. You’ll never be exposed to unauthorized buyers or scams.
Selling almost always provides a higher payout than surrendering. We can show you both options so you can decide.
No. Once the policy is sold, you are no longer the owner. Your beneficiaries are not contacted, and your privacy is fully respected.
