Your Questions, Answered

A life settlement is the sale of an existing life insurance policy to a third-party institutional buyer for a lump-sum cash payment. The buyer takes over the premium payments and eventually collects the death benefit. You receive more cash than your insurance company would offer as a surrender value — typically 4 times more, on average.

Absolutely. Life settlements are legal transactions governed by state insurance law. They are regulated in 43 states and have been recognized as a legitimate financial option by courts and financial regulators for decades. The secondary market for life insurance is well-established and professionally managed.

Once the sale closes, ownership of the policy transfers to the buyer. The buyer becomes responsible for paying all future premiums and will collect the death benefit when the insured passes away. Your beneficiaries will no longer receive the death benefit — which is an important consideration to discuss with your family before proceeding.

The buyers in life settlements are typically large institutional investors — pension funds, hedge funds, and specialized life settlement companies. They view life insurance policies as a financial asset with a predictable return. Because multiple institutional buyers compete for policies, this competition works in your favor and drives up the price you receive.

A viatical settlement involves a person with a terminal illness (typically with a life expectancy of 2 years or less). A life settlement is for seniors who are not terminally ill. Both involve selling a policy to a third party, but the regulations, buyers, and pricing are different. Citizens Life Group specializes in life settlements.

When you surrender a policy to your insurance company, you receive the cash surrender value — typically a small fraction of the death benefit. In a life settlement, you sell the policy on the open secondary market where multiple buyers compete, often resulting in a payout 4 times greater than the surrender value.

Most seniors 65 or older who own a life insurance policy with a face value of $100,000 or more may qualify. Ideal candidates have seen a change in health since the policy was issued, have a policy they no longer need, or are struggling to afford ongoing premiums. We encourage anyone who is unsure to apply — we'll give you an honest assessment for free.

Most buyers look for policies with a death benefit (face value) of at least $100,000. Policies below that threshold are generally difficult to sell because transaction costs make them less economically viable for buyers. If you have multiple policies, there may be options worth exploring. The best way to know for certain is to apply for a free estimate — there's no cost and no obligation.

Age 65 is the typical minimum, but there are exceptions. Applicants younger than 65 who have experienced a significant decline in health since the policy was issued may qualify, as buyers focus primarily on life expectancy rather than age alone. If you're under 65 and dealing with a serious health condition, it's worth applying to find out.

Universal life and whole life policies are most commonly sold in life settlements. Convertible term policies may also qualify. Standard term policies without a conversion feature typically do not qualify. If you're not sure what type of policy you have, call us — we're happy to help you figure it out.

The amount depends on several factors: the face value of the policy, the age and health of the insured, the type of policy, and the ongoing premium costs. On average, life settlement payouts are approximately 4 times the cash surrender value. We'll provide a free estimate based on your specific situation.

Yes, significantly. A decline in health since the policy was issued can actually increase your policy's value in the secondary market. Buyers price offers based on the insured's life expectancy — a policy held by someone with health changes may attract higher bids. This is why we encourage anyone over 65 to apply, even with manageable health conditions.

From start to payment, the typical life settlement takes 60 to 90 days. This includes the application and review period (1–3 days), underwriting and competitive marketing (4–8 weeks), and closing and fund transfer (2–4 weeks). Complex cases or large policies may take longer.

No medical exam is required for a life settlement. The licensed brokers we connect you with will request your medical records through a standard HIPAA authorization you sign as part of the application. An independent life expectancy underwriter reviews those records to assess your health status. The process is entirely paperwork-based — no doctor visits or physical exams required.

You remain responsible for keeping the policy in force during the sale process, which typically takes 60 to 90 days. This means continuing to pay premiums as normal during that time. If affording premiums during the process is a concern, let us know early — in some situations there are options to address this. Once the sale closes and ownership transfers, the buyer takes over all future premium payments.

You'll typically need: your life insurance policy summary or in-force illustration, a recent premium statement, a standard HIPAA medical release authorization, and a photo ID. We'll guide you through exactly what to gather for your specific situation.

Once you accept an offer, the buyer prepares closing documents for the policy transfer. You sign the paperwork (a notary is typically involved — we make this process easy). Your funds are held in escrow and released to you after the transfer is verified. You receive your payment by check or wire transfer.

Yes. Most states require a rescission period — typically 15 to 30 days after closing — during which you can cancel the sale and receive your policy back. After the rescission period ends, the sale is final. We'll make sure you understand the rescission rights in your state before you sign anything.

Getting started takes about 3 minutes. Fill out our free estimate form with basic information about your policy — face value, policy type, and the age and general health of the insured. We'll review your information and follow up within one business day to let you know if your policy looks like a candidate for a life settlement. There's no cost and no commitment to move forward.

Citizens Life Group is compensated as a marketing referral when a transaction successfully closes — paid only upon completion, never upfront. You pay nothing out of pocket — ever. There are no application fees, no upfront costs, and no fee if you apply and decide not to sell. Our incentive is aligned with yours: we only get paid when you get paid.

A fiduciary is legally required to act in your best interest — not their own, and not the buyer's. Citizens Life Group works with fiduciary-licensed brokers who represent you as the seller. They shop your policy to multiple buyers, negotiate on your behalf, and present you with all offers — never steering you toward a lower offer for their own benefit.

Citizens Life Group is based in Orlando, Florida and refers clients to licensed life settlement brokers serving most of the United States. Life settlements are formally regulated in 43 states, and service availability varies depending on applicable state licensing requirements. Contact us or fill out the free estimate form and we'll let you know right away whether we can help in your state.

No. Citizens Life Group connects you with brokers who represent the seller (you). Those brokers work with a network of vetted, institutional life settlement buyers on your behalf. This independence is what allows them to run a competitive bidding process and get you the highest offer.

Your information is handled in full compliance with HIPAA and applicable state privacy laws. We use secure, encrypted communications for all sensitive data. Your information is shared only with pre-qualified buyers who are under strict confidentiality agreements.

Life settlement proceeds may be partially subject to income tax, depending on your cost basis in the policy (the total premiums you paid). The tax treatment can be complex. We strongly recommend consulting a qualified tax advisor or CPA before completing a life settlement. Citizens Life Group does not provide tax or legal advice.

You are not legally required to disclose the sale to your beneficiaries. However, because the death benefit will no longer go to them after the sale, it may be wise to discuss it with your family as part of your overall financial and estate planning.

Possibly. If you receive Medicaid or Supplemental Security Income (SSI), receiving a large lump-sum payment from a life settlement could affect your eligibility for those benefits, as both are means-tested programs with asset and income limits. We strongly recommend speaking with a benefits counselor or elder law attorney before completing a life settlement if you currently receive either of these benefits. Citizens Life Group does not provide legal or financial advice.

You are not legally required to have an attorney, but you may choose to involve one — particularly if your estate plan is complex. The licensed brokers we connect you with will guide you through the closing documents and make sure you understand everything before signing. Most clients complete the process without an attorney. For large policies or more complex situations, having legal counsel review the transaction documents can provide additional peace of mind.

A life settlement generally does not affect other life insurance policies you may own, or non-means-tested benefits. However, if you receive Medicaid or SSI benefits, a large lump-sum payment could affect your eligibility. We recommend consulting with a financial advisor or benefits specialist if this applies to you.