10/1/2026 10:54 PM (PST)

Selling a life insurance policy for cash may be an option if your policy meets the requirements for a life settlement. A life settlement allows an eligible policyholder to transfer ownership of an existing life insurance policy to a third party in exchange for a lump-sum payment. The process generally starts with a review of the policy, including the death benefit, policy type, premium costs, remaining coverage, and other eligibility factors. If the policy qualifies, a provider may evaluate it and present an offer. The amount offered can differ from the policy's cash surrender value and death benefit. Before accepting an offer, consider potential taxes, fees, future coverage needs, and the impact on your beneficiaries.