Life Settlement Examples

Most policy owners that are doing some research online to learn about life settlements and viatical settlements are hoping to find a life settlement calculator.  Because there are so many variables involved in determining the value of a policy including premiums, cost of insurance, cost to convert a term policy, cash value, and  extensive medical reviews to determine life expectancy, each case is truly unique and the best you can do to learn more is to review some examples and fill out our informal appraisal form to get an idea on if you qualify for a life settlement and how much your policy might be worth.  Here are some examples of life settlements to help get you started:

  • Dr. T is a 95 year old male with some health issues, but nothing significant that suggests a short life expectancy of less than 2 years.  He has a universal life policy with no cash value left, and a death benefit of $950,000.  The cost of insurance is too high to keep it going, and he has decided to consider a life settlement.  Due to his age, he receives multiple offers and the highest gross offer is 66% of the death benefit, or $630,000. 


  • Mrs. M is a 75 year old female with stage 4 cancer and has been given a 2-3 years life expectancy.  Her whole life policy has a death benefit of $750,000 and has no cash value left in it.  The premiums are expensive, as are her medical bills.  Due to her diagnosis she is able to get a lot of offers and receives a gross offer of 80% of the death benefit, or $600,000.

  • Mr. B is a healthy 82 year old male with a $250k convertible term policy that covers him to age 95.  He looks into doing a life settlement, but learns that the conversion deadline was in 2007 and it's now 2019.  Because he is not terminally ill, even though his term covers him to age 95, no investors want to take the risk of receiving nothing after paying out a settlement and 13 years of premiums, and he is unable to do a life settlement.    

  • Mr. C is a healthy 74 year old male with a $500,000 universal life policy and very little cash value left in it.  He has no significant health issues, but can no longer afford the full premiums.  He is able to get a gross offer for 30% of the death benefit, or $150,000.  He receives significantly more than simply letting his policy lapse.

  • Mr. P is a 64 year old male with heart disease and a family history of heart related deaths by age 70.  He has a convertible term policy expiring in 1 year with a death benefit of $300,000.  The investor is able to convert his term policy to a universal life policy without having to go through underwriting, and he is able to get gross 40% of the death benefit or $120,000.  This is much more than simply letting the term end and getting nothing.  

  • Mrs. S is a fairly healthy 70 year old female with a $250k convertible term policy that expires in 6 months.  The investor is able to convert the policy to a universal life policy, and due to her health and age she is able to receive a gross offer of $10,000.  She does not intend on converting the policy herself, so while this is not a large amount, it is still much better than receiving nothing.

  • Mrs. H is 74, healthy, and has a whole life policy worth $150,000.  Her cash value has accumulated to $130,000.  She no longer has a need for the life insurance policy and looks into doing a life settlement.  Because her cash value is so close to the death benefit, her best option is to simply take the surrender cash value amount and there is no need to do a life settlement.