9/11/2026 2:15 AM (PST)

Yes, you may be able to sell your life insurance policy through a life settlement if the policy and insured meet certain requirements. A life settlement allows a policyholder to sell an existing policy to a third party in exchange for a lump-sum cash payment. The payment is generally more than the policy's cash surrender value but less than its death benefit. People consider this option for many reasons. They may no longer need the original death benefit because their children are financially independent, their mortgage is paid off, their estate plan has changed, or their business circumstances are different. Others may find that premiums have become difficult to afford or they need liquidity for other financial priorities. Permanent policies are the most common candidates. These can include Whole Life, Universal Life, Indexed Universal Life, Variable Universal Life, and survivorship policies. Convertible term policies may also be considered after conversion to a qualifying permanent policy. Abbistar generally looks for policies with a face value of at least $250,000, an insured who is 65 or older, and some health impairment or decline since the policy was originally issued. The process usually involves policy and medical underwriting, followed by an offer. Abbistar starts with a direct offer. If that offer is not appropriate, the case can potentially be taken to the broader market for competitive bids. Before you sell, remember that this is not a loan. You do not repay the settlement, but you also give up ownership of the policy and your beneficiaries generally will no longer receive the original death benefit. If you are asking, "Can I sell my life insurance policy?" the best approach is to have the specific policy evaluated rather than assuming it does or does not qualify.