People sell life insurance policies for a variety of reasons, often in response to changing circumstances. A life settlement is a good consideration if:

  • The policy is no longer needed — for example, there is no longer a need to replace lost income if the insured dies
  • The insurance policy is no longer affordable, whether it be that premiums are too expensive, or that personal or financial circumstances have changed
  • You don’t want to worry about keeping up with monthly life insurance payments or losing coverage is premiums go unpaid
  • Resources are needed to pay medical bills, pay off debt, contribute to living or retirement expenses, or provide supplementary income
  • You are seeking immediate financial security

Life insurance settlement is not for everyone.

We encourage all potential sellers to seek advice and examine other possible options. Alternatives to life insurance settlement may include the following:

  • Maintaining monthly premiums and coverage with a loan or use of the cash surrender life insurance value
  • Allocating the policy as a gift or charitable contribution
  • Converting a term policy to permanent insurance
  • Reducing the death benefit
  • Surrendering the policy

Please note:

Anyone considering life insurance settlement options should first talk with their insurance, financial and/or legal advisor to explore all legal, tax, and other consequences resulting from the sale of their life insurance policy. The buyer of the policy agrees to pay all future premiums and will receive the death benefit upon the passing of the policyholder.