10/5/2026 10:02 PM (PST)

Selling a life insurance policy generally involves transferring ownership of an eligible policy to a third party in exchange for a lump-sum payment. This type of transaction is commonly known as a life settlement. The process usually begins with a review of your policy information. Factors such as the death benefit, policy type, premium costs, remaining coverage, and the insured person's circumstances may be considered. If the policy qualifies, you may receive a settlement offer. Before accepting an offer, compare it with the policy's cash surrender value and consider whether keeping the policy could provide greater value. It is also important to understand potential tax consequences, transaction costs, and effects on beneficiaries.