8/24/2026 10:21 PM (PST)

Yes, you may be able to sell your life insurance policy for a lump-sum payment through a life settlement, depending on your eligibility and the type of policy you own. A life settlement allows a policyholder to transfer ownership of an existing life insurance policy to a third party in exchange for cash. The process generally involves submitting information about your policy and health history for evaluation. If the policy qualifies, potential buyers may make an offer. If you accept the offer and complete the transaction, you receive the agreed-upon payment, while the buyer becomes responsible for future premiums and receives the policy's death benefit when the insured person dies. Selling a life insurance policy can be an alternative to simply surrendering the policy, particularly if you no longer need the coverage or want to use the proceeds for other financial needs. Before selling, consider the impact on your beneficiaries, taxes, eligibility, and any applicable fees or charges.