8/24/2026 10:18 PM (PST)

Selling life insurance typically involves helping a policyholder determine whether they still need their coverage and exploring available options. If you no longer want or need a life insurance policy, you may be able to sell it through a life settlement. In a life settlement, a qualified buyer purchases the policy for a lump-sum payment that is generally greater than the policy’s cash surrender value but less than its expected death benefit. The process usually begins with reviewing your policy, coverage amount, premiums, and eligibility. A life settlement provider may then evaluate the policy and provide an offer. If you accept the offer, ownership of the policy is transferred to the buyer, and you receive the agreed-upon payment. Because eligibility and tax considerations can vary, it is important to review the transaction carefully and understand how selling your life insurance could affect your financial situation.