Quick Answer
Can I Sell My Life Insurance Policy?
Yes, in most cases you can.
Selling a life insurance policy, known as a life settlement, is legal, regulated, and available to most people 65 and older. Whether yours qualifies comes down to three things: the type of policy, its size, and the insured's age. Here are honest answers for the most common situations.
Can I Sell My Type of Policy?
The type of policy you own is the single biggest factor in whether it can be sold. Here is where each one stands, roughly from the easiest to place to the most challenging.
Can I sell my universal life policy?
Universal life is the most frequently sold policy in the life settlement market. Its flexible premiums and adjustable death benefit make it attractive to buyers. A universal life policy with a face value of $100,000 or more is very likely sellable.
Can I sell my indexed or variable universal life policy?
Indexed universal life (IUL) and variable universal life (VUL) are flexible-premium permanent policies whose cash value is tied to market performance. Both are common in the life settlement market and can usually be sold. As with standard universal life, the death benefit is what drives the offer.
Can I sell my convertible term policy?
A term policy with a conversion option is often one of the strongest candidates, and frequently easier to place than whole life. The policy is converted to permanent coverage first and then settled, often with no new medical exam. Look for a conversion privilege in your policy, or read our term life guide.
Can I sell my whole life policy?
Whole life can be sold, but it is usually the hardest of the permanent policies to place. Its premiums are fixed and cannot be lowered, and a large policy loan or high cash surrender value can shrink a buyer's return. Even so, offers are very achievable, especially on larger policies. It just takes finding the right buyer.
Can I sell my standard term policy?
Standard term has no built-in cash value, but it is not always a dead end. If the remaining level term is long enough to outlast the insured's life expectancy, buyers may still be interested. The shorter the term, or the closer it is to expiring, the harder that becomes. If selling will not work, our guide to cashing out a life insurance policy covers the alternatives.
Not sure which type you own? You are not alone, and it is easy to check. See the full qualification checklist, or just ask us and we will confirm it for you.
Can I Sell My Policy If...?
Policy type matters most, but these situations come up often. Tap any that apply to you.
Can I sell my policy if the insured is under 65?
Possibly. Most buyers look for an insured who is 65 or older, because offers are priced on life expectancy. If the insured is younger but has a serious or chronic health condition, the policy may still qualify, sometimes as a viatical settlement. It is worth asking.
Can I sell a paid-up life insurance policy?
Yes. A paid-up policy, one you no longer owe premiums on, can absolutely be sold. Because the buyer takes on little or no premium cost, paid-up policies are often especially attractive and can command strong offers.
Can I sell my policy if I can no longer afford the premiums?
Yes, and this is one of the most common reasons people sell. Selling almost always beats letting the policy lapse for nothing. If the premiums are the problem, see our guide on options when you cannot afford premiums before you cancel anything.
Can I sell my policy if there's a loan against it?
Usually yes. An outstanding policy loan is simply paid off from the proceeds when the sale closes, and you receive the remaining balance. The loan itself does not disqualify you.
Can I sell my policy if the insured is in good health?
Yes. You do not need to be in poor health to sell. A change in health since the policy was issued can raise the offer, but plenty of healthy seniors qualify on age and policy type alone.
What if I'm not sure what kind of policy I have?
That is completely normal, and it is not a problem. Send us your best guess or your policy documents and we will tell you exactly what you have and whether it qualifies, at no cost.
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(321) 270-0279Is Selling My Policy a Good Idea, and Is It Safe?
Selling a policy you no longer need or can no longer afford is a legitimate, regulated financial transaction, not a gimmick. Life settlements have been a recognized option for decades and are regulated in 43 states. Whether it is the right move depends on your own situation, which is exactly why you should never feel pressured into it.
It is regulated
Life settlements are overseen by state insurance regulators, with disclosures designed to protect you as the seller.
You stay in control
You see every offer and can decline them all at no cost. Nothing happens unless you choose to accept.
It is free to find out
Reviewing your policy and getting an estimate costs you nothing. Your broker is paid a commission from the sale proceeds only if you accept an offer and close.
You have an advocate
Citizens Life Group, your licensed fiduciary broker, represents you, the seller, and shops your policy to multiple buyers to compete for the highest offer.
Common Questions About Selling a Policy
Can I sell my life insurance policy?
Yes. Most people age 65 or older who own a permanent or convertible-term policy with a face value of $100,000 or more can sell it through a life settlement for a cash lump sum, often far more than the policy's cash surrender value.
Can I sell a term life insurance policy?
Often, yes. A convertible term policy can usually be converted to permanent coverage and then sold, frequently with no new medical exam. Even a standard term policy may qualify if the remaining term is long enough to outlast the insured's life expectancy.
Can I sell my whole life or universal life policy?
Yes. Universal life and variable life are commonly sold, and universal life is the most frequently sold of all. Whole life can be sold too, though its fixed premiums and any large loan or cash value can make it harder to place.
At what age can I sell my life insurance policy?
Most buyers look for an insured who is 65 or older, because offers are based on life expectancy. Younger policyholders with a serious or chronic health condition may also qualify.
Do I have to be in poor health to sell my policy?
No. You do not need to be sick to sell your policy. A decline in health since the policy was issued can increase your offer, but many healthy seniors qualify based on age and policy type alone.
Can I sell a paid-up life insurance policy?
Yes. A paid-up policy can be sold. Because little or no further premium is owed, paid-up policies are often especially attractive to buyers and can draw strong offers.
Can I sell my policy if there is a loan against it?
Usually yes. An outstanding policy loan is paid off from the proceeds when the sale closes, and you receive the remaining balance. A loan does not disqualify you.
Is it free to find out if I can sell my policy?
Yes. Reviewing your policy and getting an estimate is free with no obligation. Your broker is paid a commission out of the sale proceeds only if you accept an offer and the sale closes.
Find Out If You Can Sell, in About 3 Minutes
Get a free, no-obligation estimate. We will review your policy and tell you honestly whether it qualifies and roughly what it may be worth.
Learn more about selling a life insurance policy:
Sell Your Policy for Cash
Payouts, buyers, and the complete guide
What Is a Life Settlement?
The full plain-language guide
Do I Qualify?
The complete qualification checklist
How Much Is My Policy Worth?
Valuation factors and real examples
How Does the Process Work?
Step-by-step, from start to payment