A life settlement is the sale of an existing life insurance policy for more than its cash surrender value, but less than the face value of the policy. A life settlement on average will pay 4x more than the cash surrender value of the policy. The buyer becomes the beneficiary of the policy.

Accelerated Death Benefits – Is an option a lot of insurance carriers grant where a life insurance policyholder has been diagnosed as terminally or chronically ill with a reasonable life expectancy of 2 years or less the policyholder can receive a portion of the death benefit while you are still living. The remaining amount of death benefit can be sold as Life Settlement.

For life settlements transactions the types of life insurance that mainly qualifies are Universal Life, Term Life, Whole Life, Indexed Universal Life, Survivorship, Group Life, and Variable Life.

The secondary market for life insurance is designed to give policyholders the option to sell their life insurance policy.  Your life insurance policy is a great investment tool because your policy has equity. If your life insurance policy has a face value of $100,000 or more you may qualify to sell your policy.

There are several important reasons why one should consider selling their life insurance policy, which are outlined below.

Over 100 billion dollars of life insurance is lapsed or surrendered each year by policy owners 65 years of age or older.

Over 3 billion dollars in life settlements is transacted each year.

Get liquid cash lump sum –Pay off debt - credit cards etc.

A life settlement can pay for unexpected expenses such as medical bills and long-term care that can heavily impact your finances especially during retirement. The cash from a life settlement transaction can be used for whatever the policy owner sees fit.

Add to savings and retirement

A life settlement is an excellent vehicle to supplementyour savings and retirement. There are no upfront fees a policy owner has to pay to sell their life insurance. Selling your life insurance policy can greatly reduce your expenses, and the buyer takes the responsibility of all future premiums. Life settlements can provide additional, safe and secure, financial peace of mind when you need it most, especially in times of economic uncertainty that could affect the value of your other investments, such as stocks, bonds, and retirement accounts.

Premiums have become too expensive and policy is about to lapse

A life settlement is an excellent way to avoid letting your policy lapse if you can no longer afford the premiums. When a policy owner can no longer make the premium payments the premium payments are deducted from the cash value of the policy. If your life insurance policy lapses you might only receive just a portion of the cash surrender value.

No longer need the life insurance policy

A life settlement can give you the cash from an insurance policy while you are still living. A life settlement is a good idea if you no longer have a spouse or children that would have been the beneficiaries of the policy.

Life insurance term policy is about to expire

Term life insurance policies expire with no cash value, and the price to replace the term policy is very expensive. You may be able to convert your term policy to a permanent life insurance policy, and the new policy may be eligible to sell for cash.


To get started on your life settlement, please call:

Capital Management. Insurance - Investments - Financial Planning

Jeffery Moore, Principal - Life Insurance Broker & Consultant

323-270-0167 or