10/5/2026 10:01 PM (PST)

Selling life insurance policy can be an option for eligible policyholders who no longer need their coverage or would prefer to receive money while they are still living. A life settlement allows an eligible policyholder to transfer ownership of an existing policy to a third party in exchange for a lump-sum payment. The process generally starts with a review of the policy's type, death benefit, premium costs, remaining coverage, and other eligibility factors. If the policy qualifies, a provider may present an offer. Before accepting an offer, compare it with the policy's cash surrender value and consider potential taxes, fees, and the effect on your beneficiaries. Understanding all available options can help you make a more informed decision.