Sell Life Insurance Policy

If you landed on this page, chances are you are doing some research about Life Settlements or Viaticals, and searched: sell life insurance policy.  The good news is that you can sell a life insurance policy, and you've come to the right place.  In this article  I'll explain how you can sell your life insurance policy, the steps involved in the process, and how our firm can help find you the highest bidder for your policy.  


Life Settlement is the term used when an individual sells their life insurance policy to a third party for a lump sum of money valued greater than the cash surrender value of the policy but less than the death benefit.  The 3rd party takes over the premiums and becomes the beneficiary of the death benefit.  A Viatical is the same type of arrangement, but the term is typically used for people who have less than 2 years to live or are in a long term care situation and need capital to pay long term care expenses.

The most common type of policy that is bought and sold is a Universal Life policy or Whole Life Policy.  Second to Die policies are also common, and surprisingly Term Policies are too as many are convertible to whole life and universal life policies.  

There are a number of reasons one might sell a life insurance policy.  A common occurrence is when someone purchases a Universal Whole Life policy earlier in life in hopes of leaving tax-free inheritance money for their family and even taking a loan out on the policy to help retire.  If they live longer than expected, the premiums on these policies can become very expensive to pay, especially if you've been retired for a while and live on a fixed income.  Instead of letting the policy lapse with the owner losing out on all those years of premiums, they might sell the policy to a 3rd party to save some of the value left in the policy.

Another reason someone might sell is that they no longer need the protection of the policy as they once did.  Business owners might set up a buy sell agreement, and no longer need it.  Or perhaps someone's children are all grown up and financially independent, or their spouse passed and they don't have a beneficiary that needs the death benefit anymore, then they may choose to access as much as they can out of their own policy now to enjoy their remaining years by selling it to a third party.

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A life insurance policy is considered an asset, which can be sold to 3rd party, just like real estate.  If you're thinking about selling your life insurance policy, you've come to the right place because Life Settlement Option connects you to a team of experts that appraises, prepares, and presents your life insurance policy to as many investors as we can to find the highest bidder.   Here's what the process looks like:

  • Share your case details with a licensed agent

    • What are the details of your policy, why are you wanting to sell, and what is the health status of the insured 

  • If your case qualifies for a life settlement, we'll schedule you a conversation with one of our lead advisors to learn more about our firm and expertise, and begin the underwriting process to prepare your case

    • Life Settlement investors are going to require a fair amount of information in order to properly evaluate the opportunity.  They'll need health records, a copy of the original policy, the history of policy ownership, history of beneficiaries, proof of social security, spousal approval, and more.  Our team will help with these requirements, but it will be up to you to be organized and provide some of these things and keep your premiums paid up and the policy in force   

  • Prepare Your case to be presented

    • This is one of our firm's areas of expertise.  We have a strong understanding of how buyers view certain information, so it's our job to present your case in the best way possible  

  • Present Your Case to As Many Buyers as We Can

    • Once we've collected all pertinent information and prepared your case, we will start shopping it around to as many investors as we can.  Investors will be given a deadline to get their bids in, and we will present you with the highest bid(s). 

  • Receive Bids

    • At this point you can choose to move forward or pass on the offer

      • Once you accept an offer, the deal goes into escrow which can take a few weeks.  The buyer will likely want to review the latest medical records, sign additional paperwork, arrange proper transfer of ownership, and establish a closing interview

  • Get paid 

    • Once the life settlement is closed, you'll receive your pay out, and no longer need to worry about making those premium payments

We recommend working with a brokerage firm that specializes in preparing and presenting life settlement deals to as many buyers as possible to help get you the most money for your policy.  

The amount of time it takes to sell a life insurance policy is somewhat dependent on you and your level of motivation, but it can take several months from start to finish.  You may be considering a potential sale 6 months out, or you may want to sell this policy as soon as you can.  If you're not quite sure if you'll need to sell yet, we can begin helping you to prepare in case you do.  When you're ready, we can bring your case to market quickly and start getting bids back within a couple weeks.  

The best way to get started would be to either email us your case details or book a phone appointment with one of our agents.  Avoid letting your policy lapse and get started today.