The Advisor's In-Depth Life Settlement Guide
A comprehensive reference for financial professionals, national accounts, and fiduciaries. Everything you need to confidently integrate life settlements into your practice — and count on Accelerated Life Solutions to service your clients.
Brian Hurley
Licensed Life Settlement Broker · Accelerated Life Solutions
44+
States with Consumer Protection Laws
$112B+
Face Value Lapsed or Surrendered Yearly (ACLI estimate)
947
Documented Completed Cases (company records)*
$207B
Estimated Untapped Policy Value Annually
* Based on company records. Face amount is the total death benefit of policies involved, not settlement proceeds.
What's In This Guide
What Is a Life Settlement?
A life settlement is the sale of an existing life insurance policy by the policyowner to a licensed third-party investor — called a life settlement provider. In exchange for a lump-sum cash payment, the seller transfers ownership and all beneficiary rights to the buyer. The buyer assumes future premium payments and ultimately collects the death benefit.
Life settlements are most suitable for seniors age 65 and older holding policies with a face value of $250,000 or more who no longer need, want, or can afford the coverage. The result: immediate, meaningful liquidity from an asset that would otherwise lapse, surrender, or simply expire — delivering far less value than the open market could provide.
For more background on the broader topic, see our guide on how life settlements work or review eligibility criteria on our eligibility page.
The Opportunity for Financial Professionals
The life settlement market represents one of the most significant underutilized planning opportunities available to financial professionals today. According to industry data, ACLI estimates more than $112 billion in face value lapses or surrenders each year from seniors over 65 — the vast majority without ever being evaluated for settlement potential.
Regulatory guidance from FINRA and the NAIC increasingly holds advisors to a fiduciary standard that requires presenting all reasonable options to clients — including life settlements. This isn't just an opportunity; for many professionals, it is becoming a compliance obligation.
The proceeds from a life settlement can be strategically redeployed into annuities, managed accounts, long-term care insurance, or estate planning instruments — increasing your AUM and strengthening client relationships in the process.
By The Numbers
Regulatory & Fiduciary Considerations
Life settlements are regulated at the state level, with 44+ states and Puerto Rico maintaining comprehensive statutes covering licensing requirements for brokers and providers, consumer disclosures, anti-fraud provisions, and privacy protections.
Recent guidance from the NAIC Life Settlement Model Act underscores the fiduciary responsibility of financial professionals to discuss life settlements as a viable alternative to lapse or surrender when reviewing client portfolios. Advisors who fail to do so may face liability exposure in states where best-interest standards apply.
Accelerated Life Solutions, LLC is a licensed life settlement broker in Florida (Company License #L083995). Every transaction follows documented compliance protocols, with full audit trails and client disclosures provided at each stage. We make your compliance posture stronger, not weaker.
Florida Licensed
Company License #L083995; additional states upon request
Full Documentation
Audit-ready compliance at every step
HIPAA Compliant
All medical data handled under strict protocols
The Settlement Process — Step by Step
Our structured workflow is designed to protect your client relationship at every stage while delivering a competitive market process. From initial inquiry to funded close, here is exactly how it works.
Policy Review & Eligibility Screening
We analyze policy type, face amount, carrier rating, and insured profile to determine settlement viability. No obligation. Qualified submissions may receive a preliminary valuation within approximately 24 hours after sufficient initial information has been received.
Life Expectancy (LE) Assessment
Independent LE reports are ordered from accredited medical underwriters. These form the foundation of buyer valuations and competitive bids.
Competitive Bidding & Market Auction
We present the policy to our institutional buyer network, running a transparent auction to maximize proceeds for your client — never a single provider's offer.
Offer Review with Advisor & Client
All offers are reviewed with you first. You remain the trusted relationship. We provide clear documentation so your client can make a fully informed decision.
Contracting & Ownership Transfer
We manage HIPAA-compliant documentation, ownership change filings, and escrow arrangements. Full compliance at every step.
Settlement Funds Delivered
Proceeds are paid directly to the policy seller. Overall timeline varies with underwriting complexity, documentation availability, buyer requirements, and carrier processing. Estimated closing and funding timelines are communicated as the transaction progresses. No fixed completion date is guaranteed.
Ready to review a client case?
Submit a policy for a confidential, no-obligation evaluation. Qualified submissions may receive a preliminary valuation within approximately 24 hours after sufficient initial information has been received.
Valuation: How Policy Value Is Determined
Policy market value is driven by a combination of actuarial, financial, and carrier factors. Unlike a fixed formula, life settlement pricing is determined by competitive institutional bidding — meaning the seller always receives the highest available market price, not a single provider's estimate.
Age & Health of Insured
Life expectancy is the primary driver of market value. The shorter the LE, the higher the bid.
Policy Type
Universal Life, Whole Life, and convertible Term policies are most marketable. ILIT-owned and key-person policies are frequently evaluated as well.
Death Benefit Amount
Policies with $250K+ face value qualify. Larger face amounts ($500K+) attract the broadest institutional buyer interest.
Premium Requirements
Lower ongoing premiums improve net present value for buyers, resulting in higher offers for sellers.
Carrier Rating
A-rated and above carriers are preferred. AM Best ratings directly impact buyer confidence and pricing.
Cash Surrender Value (CSV)
A life settlement may produce more than the policy's cash surrender value, but results vary by case. A free evaluation shows whether a policy may have secondary-market value.
Important: The only way to know what a policy is worth is to put it to the market. Policy appraisals are free and non-binding. We encourage advisors to submit any policy where premiums are becoming burdensome or coverage is no longer needed — you may be surprised by the result. Use our settlement value estimator for a quick preliminary read.
Key Benefits for Advisors & Clients
For Financial Professionals
- Fulfill your fiduciary duty by presenting all viable options — including life settlements
- Differentiate your practice and create new planning touchpoints with existing clients
- Redeploy settlement proceeds into AUM: annuities, managed accounts, LTC insurance
- Earn referral fees where state-licensed and compliant (subject to jurisdiction)
- Generate client appreciation and referrals from a uniquely positive outcome
- Position yourself as a sophisticated, full-service planning partner
For Your Clients
- Receive significantly more than cash surrender value from an unwanted policy
- Eliminate burdensome premium payments on coverage no longer needed
- Fund long-term care, memory care, medical expenses, or retirement income
- Convert a depreciating asset into immediate, deployable liquidity
- Avoid the permanent loss of policy value through lapse or surrender
- Make an informed financial decision with guidance from a trusted advisor
Case Study: $500K Policy, $110K Settlement
Client Age
78
Policy Type
Universal Life
Face Amount
$500,000
Cash Surrender Value
$34,000
Life Settlement Offer
$110,000
Label
Hypothetical illustration
A 78-year-old client with a $500,000 Universal Life policy was facing rapidly escalating premiums and had decided to let the policy lapse. His advisor — before accepting the lapse — submitted the policy to Accelerated Life Solutions for a confidential appraisal.
After a structured market auction, the client received a settlement offer of $110,000, compared with a $34,000 cash surrender value. The advisor redeployed the proceeds into a combination of a long-term care rider and a managed income account, strengthening the relationship and generating new referrals.
This is a hypothetical illustration; individual results vary. Browse our full library of life settlement case studies for more examples. To spot similar opportunities, read how to identify life settlement candidates in your book of business.
Common Misconceptions & Compliance Myths
Myth
Only terminally ill clients qualify.
Fact
Most life settlement clients are seniors in average or moderately impaired health, age 65–85. Terminal illness is not required.
Myth
The process is invasive and takes months.
Fact
A structured workflow keeps the process organized, and medical record retrieval uses HIPAA-compliant digital authorizations. No fixed completion date is guaranteed.
Myth
Life settlements are unregulated or risky.
Fact
44+ states have comprehensive life settlement laws governing licensing, disclosure, anti-fraud provisions, and consumer protections.
Myth
My clients' privacy could be at risk.
Fact
All medical and financial data is handled under strict HIPAA protocols. Buyer communications are anonymized until closing.
Myth
This is only for desperate policyowners.
Fact
Sophisticated estate planners, CPAs, and financial advisors proactively initiate life settlement reviews as part of routine policy audits.
Myth
I could lose my client relationship.
Fact
When an advisor brings us a case, we coordinate with the advisor throughout and keep the advisor-client relationship intact. Policyowners may also contact us directly.
How Accelerated Life Solutions Supports You
Accelerated Life Solutions is a licensed Florida life settlement broker that works with advisors, CPAs, attorneys, trustees, and institutional partners, and also serves individual policyowners directly. When a professional brings us a case, we coordinate with them so their client relationship is preserved.
Advisor-Friendly Model
We work alongside financial professionals and coordinate with them as appropriate, so your client relationship stays intact.
Speed & Accuracy
Fast turnaround on policy appraisals, competitive bids from our institutional buyer network, and dedicated case managers for every file.
Compliance-First Operations
Documented compliance steps and client disclosures at each stage. Accelerated Life Solutions, LLC is a licensed life settlement broker in Florida (Company License #L083995; NPN 16964067). Brian Hurley holds Florida Individual License #E113686. Additional state licenses are obtained upon request, subject to applicable state requirements.
Competitive Bidding Model
We run a true auction — not a single-provider offer. Competitive participation gives your clients' policies broader market exposure.
Advisor Education & Resources
We provide educational content, case consultation, and compliance guidance through our website to keep your team current and confident — though we do not offer CE credits.
Documented Track Record
Founded in 2012, with leadership experience in the life settlement industry since 1994. 947 documented successfully completed life settlement cases representing $3.9 billion in aggregate policy face amount (company records).
We Service Every Type of Professional Partner
From solo RIAs to national broker-dealer networks, we have the infrastructure and compliance documentation to integrate into your practice.
RIA Firms & BD Networks
We provide turnkey integration with RIA compliance frameworks, BD rep-of-record structures, and group training for advisor teams.
CPA & Tax Advisory Firms
Partner with us to offer life settlement as part of estate planning, business exit, or charitable giving strategy discussions.
Estate Attorneys & Fiduciaries
We support trustee-directed transactions, ILIT unwind strategies, and estate liquidity engagements with full documentation.
Insurance Agencies & IMOs
Replace lapsing policies with new solutions by funding the transition through life settlement proceeds. We close the loop.
Wealth Management Platforms
National accounts receive dedicated case management, white-label materials, compliance documentation, and tiered service agreements.
Senior Living & LTC Networks
Help families fund care transitions by identifying hidden policy value. We provide training and case support for your counselors.
Conclusion & Next Steps
Life settlements represent one of the most powerful and underutilized planning tools available to clients with unneeded life insurance coverage. By mastering the process and building a trusted broker relationship with Accelerated Life Solutions, you can unlock meaningful value for your clients — and create new planning and revenue opportunities for your practice.
We handle every aspect of the settlement process on your behalf — from policy appraisal and competitive bidding to compliance documentation and closing. Your only job is to have the conversation.
Ready to explore a case, need support on a client question, or want to discuss a national accounts partnership? Contact Brian Hurley directly for a confidential consultation.