Frequently Asked Questions

What is a life settlement?

A life settlement is the sale of an in-force life insurance policy to a third-party buyer for a lump-sum cash payment greater than the surrender value. After closing, the buyer becomes the policy owner and beneficiary and assumes all future premium obligations.

Who typically qualifies?

Eligibility depends on age, health, policy type, death benefit size, and premium structure. Many universal life (UL) policies and convertible term policies with $100,000+ in coverage may qualify. Every policy is evaluated individually.

What types of policies can be sold?

Universal life, whole life, variable life, survivorship life, and convertible term policies are commonly evaluated. Pure term policies without conversion rights are generally harder to place, but may still qualify in certain situations.

How is the offer amount determined?

Offer value is driven by expected premium requirements, life expectancy assessment, policy structure, and the buyer's return requirements. Competitive bidding from multiple institutional buyers helps improve pricing in qualified cases.

How does a life settlement compare to surrendering my policy?

Surrendering a policy typically returns only the carrier's cash value, which may be far below market value. A life settlement presents your policy to multiple institutional buyers and can produce a significantly higher offer.

How does it compare to letting the policy lapse?

Letting a policy lapse produces zero proceeds. A life settlement monetizes the policy's remaining value before it lapses, which in many cases is substantially more than nothing.

How long does the process take?

Most cases complete in several weeks once required documents — including medical records and policy illustrations — are received. Complex cases involving multiple buyers or additional underwriting can take longer.

Do I have to keep paying premiums during the process?

In most cases, premiums remain the policyowner's responsibility until closing. If a premium due date is approaching, we can review timing considerations and available options depending on your case.

Who pays premiums after the policy is sold?

After closing, the buyer assumes responsibility for all future premiums and ongoing policy servicing. The seller has no further premium obligations once the transfer is completed.

Will I still have life insurance coverage after I sell?

No. Once the policy is transferred at closing, the buyer becomes the owner and beneficiary. If continued coverage is important to you, discuss alternatives with your advisor before proceeding.

Are life settlement proceeds taxable?

Tax treatment can be complex. Proceeds may involve recovery of basis (tax-free), ordinary income, and/or capital gains, depending on the policy type and total proceeds. Consult a qualified tax professional regarding your specific situation before proceeding.

Is my personal and medical information kept confidential?

Underwriting requires medical records and policy documentation. All information is handled under signed authorizations and applicable privacy requirements, and is shared only with parties directly involved in evaluation and bidding.

Is there a cost to get an estimate?

There is no cost to receive an initial estimate. Fees, if any, are typically disclosed as part of the transaction terms and vary by case structure.