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Frequently Asked Questions
Find quick answers to the most common questions about selling your life insurance policy through a life settlement.
A life settlement is the sale of your life insurance policy to a third-party buyer for a lump sum cash payment, often much more than the surrender value.
You can sell your policy through a licensed life settlement broker like Life Policy Solutions, who connects you with multiple buyers to get the highest offer.
Policy value depends on age, health, policy type, and face amount, but payouts are typically 4–8 times higher than surrender value.
Most universal, whole life, and convertible term policies may qualify, especially for seniors 65+ or those with health conditions.
Most settlements close within 3–10 weeks, with some completed in as little as 30 days.
Yes, a life settlement almost always pays more than the policy’s cash surrender value.
No, once your policy is sold, the buyer takes over premium payments.
In many cases, life settlement proceeds are taxable; always consult a tax advisor for your specific situation.
A viatical settlement is for people with a serious or terminal illness; our sister company, Cancer Care Financial, specializes in viaticals for cancer patients.
Universal life, whole life, variable life, and convertible term policies are most common.
Most buyers prefer policyholders age 65 or older, but younger individuals with health issues may still qualify.
The main trade-off is that your beneficiaries will no longer receive a death benefit once the policy is sold.
A broker brings your policy to multiple buyers, creating competition that drives up your payout.
Brokers earn a commission from the buyer once your policy is sold, meaning you pay nothing upfront.
Yes, in some cases a partial life settlement allows you to sell a portion of your policy and keep a reduced death benefit.
Yes, if the policy is convertible to permanent coverage, it may qualify for a life settlement.
Yes, once sold, the policy’s death benefit goes to the buyer, not your original beneficiaries.
Using a broker like Life Policy Solutions ensures your policy is bid on by multiple buyers, maximizing your payout.
Yes, the process is secure and confidential, with only licensed parties reviewing your policy details.
There are no restrictions — you can use the cash for retirement, debt relief, medical expenses, or lifestyle needs.
The Life Settlement Process
Selling a life insurance policy is fast and easy.
Life Policy Solutions is your trusted broker to guide you to the highest life settlement offers.