9/11/2026 2:16 AM (PST)

If you are considering how to sell a life insurance policy, the process generally starts with determining whether your policy is eligible for a life settlement. First, review the type and size of your policy. Life settlements primarily involve permanent policies such as Whole Life, Universal Life, Indexed Universal Life, Variable Universal Life, and survivorship policies. A face value of $250,000 or more is commonly considered a starting point for evaluation. Next, the insured's age and health are reviewed. Life settlements are generally designed for older policyholders, and health changes since the policy was issued can affect the potential value. A policy does not have to involve a terminal illness to be considered. The next stage is underwriting. The provider reviews the policy documents, premium requirements, and relevant medical information to estimate the policy's potential market value. With Abbistar, the process starts with a direct cash offer. If the direct offer is not the right fit, Abbistar can take the case to the broader market and seek competitive bids from institutional buyers. If you accept an offer, the necessary paperwork is completed and ownership of the policy transfers to the buyer. The policyholder receives the settlement payment, typically within 2 to 4 weeks of closing. The buyer then becomes responsible for future premiums and ultimately receives the death benefit when the insured dies. Before selling, compare the potential settlement with alternatives such as keeping the policy, surrendering it, or allowing it to lapse. Also consider how selling will affect your beneficiaries. A life settlement is not automatically the best choice for every policyholder, but it is an option worth exploring when a policy no longer fits your financial situation.