Life Settlements: How a Life Settlement Broker Helps
Accelerated Life Solutions is an independent life settlement broker serving financial professionals and policyowners. We help evaluate whether a life insurance policy may have secondary-market value before it is surrendered or allowed to lapse.
What Are Life Settlements?
What Is a Life Settlement?
A life settlement is the sale of an existing life insurance policy by a policyowner — often age 65 or older — to a qualified third-party buyer for a lump-sum payment. The buyer becomes the new owner, pays future premiums, and collects the death benefit. 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.
What Is a Viatical Settlement?
Viatical settlements are designed for policyowners diagnosed with a terminal or chronic illness, typically with a life expectancy of less than two years. These settlements can provide much-needed liquidity for medical or living expenses. Tax treatment and eligibility often differ significantly from traditional life settlements — sometimes resulting in a tax-free payout.
How Did Life Settlements Originate?
The origins of life settlements trace to Grigsby v. Russell (1911), a landmark U.S. Supreme Court decision establishing that life insurance policies are personal property that can be sold or transferred. In the late 1980s, viatical settlements emerged. Today, life settlements are a mainstream financial planning option governed by state regulations and professional standards.
How do life settlements work?
A policyowner, or their financial professional, shares basic policy and health information. A life settlement broker reviews eligibility, gathers policy and medical records, and arranges underwriting so buyers can estimate life expectancy. The broker then presents the policy to qualified institutional buyers, negotiates competing offers, and manages the paperwork, carrier ownership transfer, and closing.
The policyowner decides whether to accept any offer. Broker compensation is determined case by case and disclosed before the transaction is finalized. See the full 8-step life settlement process.
How Does a Life Settlement Compare to Surrender or Lapse?
Understanding your three primary options when a life insurance policy is no longer needed. See also lapse vs surrender vs life settlement.
| Factor | Life Settlement | Cash Surrender | Lapse |
|---|---|---|---|
| Payout | Market-based offer; results vary by case | Cash surrender value set by the carrier | $0 |
| vs. Surrender Value | May exceed surrender value; varies by case | Baseline | No value received |
| Future premiums | Eliminated (buyer pays) | Eliminated | Eliminated |
| Timeline | Varies by case; no fixed completion date | Set by the carrier | Immediate (grace period ends) |
| Tax treatment | Basis + ordinary income + capital gains | Basis + ordinary income | No proceeds, no tax |
| Broker compensation | Determined case by case; always disclosed before the transaction is finalized. | Not applicable | Not applicable |
| Best for | Exploring market value of an unwanted policy | Quick, low-effort exit | No other option / oversight |
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.
Does a Policy Qualify for a Life Settlement?
- Insured age 65 or older (sometimes younger with impaired health)
- Policy face amount commonly $250,000 or more
- Universal life, whole life, and convertible term policies
- Policy past its contestability period (commonly two years)
Not every policy qualifies for a life settlement. Eligibility and outcomes depend on policy characteristics, insured health, premiums, underwriting, and market conditions.
Review the full life settlement eligibility criteria.
Why Do Policyowners Consider Life Settlements?
- Premiums are no longer affordable or justified
- Policy is no longer needed (children grown, estate taxes changed)
- Desire for improved liquidity or additional retirement income
- Business-owned policies after ownership changes
"I never realized my life insurance policy could provide real financial options. Accelerated Life Solutions guided me every step of the way, always acting with professionalism and integrity."
Life Settlement Broker FAQs
Is a life settlement legal and regulated?
Yes. Life settlements are legal, and many states regulate them with disclosure and licensing requirements. 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.
How do I know if a policy qualifies for a life settlement?
Policies commonly considered include universal life, whole life, and convertible term policies where the insured is older or has experienced health changes. Not every policy qualifies for a life settlement. Eligibility and outcomes depend on policy characteristics, insured health, premiums, underwriting, and market conditions. A confidential evaluation from Accelerated Life Solutions shows whether a specific policy may qualify.
Will policy and medical information remain private?
Yes. Accelerated Life Solutions handles policy and medical information in accordance with HIPAA and applicable state privacy laws, and no information is shared without express written consent.
How is life settlement broker compensation handled?
Broker compensation is determined case by case, considering the circumstances and economics of each transaction, and is always disclosed before the transaction is finalized. Compensation is structured to support successful transactions while staying transparent with the appropriate parties. Applicable compensation and transaction costs are disclosed in accordance with governing state laws and transaction documentation.
What's the difference between a life settlement and a viatical settlement?
Viatical settlements are for those diagnosed with a terminal or chronic illness; life settlements are typically for seniors without a qualifying illness. Viatical settlements can have different tax benefits and qualification rules.
Can policyowners contact a life settlement broker directly?
Yes. Accelerated Life Solutions works with financial professionals and with individual policyowners. Policyowners may contact us directly for a confidential policy evaluation. If you work with a financial or insurance professional, we can coordinate with them as appropriate.
How long does a life settlement take?
Qualified submissions may receive a preliminary valuation within approximately 24 hours after sufficient initial information has been received. 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.
More answers in our life settlement FAQ.