Life Settlements · Free Estimate · No Obligation
Sell Your Life Insurance Policy for Cash
If you are 65 or older and your policy has a death benefit of $100,000 or more, there is a good chance you can sell it for a lump-sum cash payment. The transaction is called a life settlement, and in 2025 the average reported payout was $212,066, nearly nine times what insurers paid for surrender (LISA).
You do not need to be ill to qualify. Universal life, whole life, variable life, and convertible term policies can all be sold. Reviewed by Jeff Hallman, Florida-licensed viatical settlement broker, License 0266.
- Licensed & Regulated
- No Upfront Fees
- Buyers Compete for Your Policy
- No Obligation to Accept
$212,066
Average 2025 Payout (LISA)
Nearly 9x
What Surrender Pays
$0
Cost to Find Out
Free · No Obligation · Confidential
Find Out What Your Policy Is Worth
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(321) 270-0279$212,066
Avg. 2025 Payout
Nearly 9x
vs. Surrender
$0
Cost to Find Out
Who Qualifies to Sell a Policy
A common myth is that you have to be seriously ill to sell. That is not true. You need a qualifying policy and a reason you no longer want or need the coverage. The general criteria:
Age 65 or older
Most buyers look for insureds 65 and up. Younger policyholders with significant health changes may still qualify through a viatical settlement.
$100,000 or more in face value
The death benefit on your policy statement. Larger policies attract more competing buyers, and some purchasers consider smaller policies.
A qualifying policy type
All types of universal life and whole life policies can be sold, and even term policies qualify. Term works best while it can still be converted.
Any change in health helps
A decline in health since the policy was issued generally increases the offer, because the buyer projects a shorter premium-paying period.
Not sure where you stand? Our qualification guide walks through every criterion, or take the two-minute eligibility check.
How Much Can You Get for Your Policy?
Every policy is priced on the insured's age and health, the policy type, and the premiums required to keep it in force. These industry figures give you a realistic ballpark:
| Measure | Typical figure |
|---|---|
| Average payout | About 20% of face value |
| Typical range | 10% to 25% of face value, more for shorter life expectancies |
| Higher-end cases | 50% or more for insureds with serious health conditions |
| Versus surrendering | 2025 average settlement: $212,066. Average surrender: $24,360 (LISA) |
$100,000 policy
$10,000 to $25,000
Typical selling range
$250,000 policy
$25,000 to $60,000
Typical selling range
$500,000 policy
$50,000 to $125,000
Typical selling range
Individual results vary, and not every policy receives an offer. The only way to know your number is to ask: get a free estimate, or read more about what drives a policy's value.
One Offer Is Just a Number. Competition Finds the Real Price.
The actual buyers are institutional investors: pension funds, asset managers, and state-licensed settlement providers. Think of it like selling a house. You would never accept the first knock on the door without listing it. The same policy can sell for very different amounts depending on which path you take.
Selling direct to one buyer
- You get a single take-it-or-leave-it offer
- That company profits by paying you as little as possible
- You have no way to know if the number is fair
- No one is representing your interests
Working with a licensed broker
- The broker has a legal fiduciary duty to you, the seller
- Your policy is shopped to many buyers at once
- Buyers bid against each other, which drives the price up
- Every commission is disclosed in writing before you sign
In one documented industry case, a policy owner held a direct buyer's offer of $20,000. A brokered auction settled the same policy at $1,200,000. Most results are far less dramatic, but the direction is consistent: competition pays sellers more. Citizens Life Group connects qualified policyholders with licensed brokers who run that competition. You pay nothing upfront, and broker commissions come out of the proceeds only if you choose to sell.
How Selling Your Policy Works
The full process typically runs 60 to 90 days from first contact to funds in hand, in three phases:
Qualify
1 to 3 days
A free review of your age, policy type, face value, and general health. If the policy qualifies, you sign an application and a medical records release. No medical exam.
Underwriting & bidding
4 to 8 weeks
Independent underwriters review the records, and a licensed broker invites competing offers from institutional buyers. You see every offer in writing, with the commissions and your net amount.
Closing & payment
2 to 4 weeks
You sign the transfer paperwork, the buyer funds an independent escrow, and the escrow agent releases your payment once the insurer confirms the change. State law gives you a rescission period to change your mind.
You are never obligated to accept an offer, and there is no cost if you decide not to sell. For the complete stage-by-stage walkthrough, see how to sell your life insurance policy.
Watch: Selling a Policy, Explained in 12 Minutes
Who qualifies, what policies sell for, who the buyers are, and the mistakes that cost sellers the most.
Reviewed by Jeff Hallman, Managing Director, Florida License 0266.
Four Mistakes That Cost Sellers the Most
- Letting a policy lapse without checking its value. Industry data shows 85 to 88% of policies never pay a death benefit. If you stop paying and the policy lapses, you get nothing.
- Surrendering without a market comparison. The 2025 average surrender was $24,360 against a $212,066 average settlement (LISA). Compare before you cancel.
- Accepting a single direct offer. One buyer has no reason to offer a fair price. A licensed broker creates competition.
- Missing a term conversion deadline. A convertible term policy can qualify only while the conversion window is open. Check your deadline before it passes.
Own a term policy? See whether a term life policy can be sold before the conversion right expires. Weighing surrender or a policy loan instead? All three routes are compared in cashing out a life insurance policy.
Frequently Asked Questions
Can I sell my life insurance policy for cash?
Yes. If the insured is generally 65 or older and the policy has a death benefit of at least $100,000, it often qualifies to be sold for a lump-sum cash payment through a life settlement. The buyer takes over the premiums and receives the death benefit later. You receive cash now, almost always far more than the policy’s cash surrender value.
How much can I sell my life insurance policy for?
The average life settlement pays about 20 percent of the policy’s face value, so a $500,000 policy might return around $100,000. Most standard cases fall between 10 and 25 percent, and payouts can reach 50 percent or more for insureds with shorter life expectancies. In 2025, LISA reported an average payout of $212,066, nearly nine times the $24,360 average cash surrender value.
How much can you sell a $100,000 life insurance policy for?
As a rough guide, a $100,000 policy commonly sells for somewhere between $10,000 and $25,000, and more if the insured’s health has declined significantly. The exact figure depends on age, health, policy type, and the premiums needed to keep the policy in force. The only way to know your number is a free estimate.
At what age can you sell your life insurance policy?
Most life settlement buyers look for an insured who is 65 or older. Younger policyholders can sometimes qualify if they have a serious or chronic health condition, which is usually handled as a viatical settlement rather than a standard life settlement.
Is it a good idea to sell your life insurance policy?
It often makes sense when the coverage is no longer needed, the premiums have become a burden, or you would otherwise let the policy lapse or surrender it for little. It may not make sense if your family still depends on the death benefit. Because the proceeds can affect taxes and need-based benefits like Medicaid, it is worth speaking with a professional before you decide.
Does it cost anything to find out what my policy is worth?
No. A licensed broker reviews your policy and gives you an estimate at no cost, and the broker’s commission only comes out of the sale proceeds if you decide to sell. You should never pay anything upfront to explore a life settlement.
Have a question that isn't here? See the full FAQ, learn what a life settlement is, or read about how settlement proceeds are taxed.
Find Out What Your Policy Is Worth Before You Let It Go
The estimate is free, it takes about two minutes, and you are under no obligation. You never write a check: if a sale goes through, the broker's commission comes out of the proceeds and is disclosed in writing first.
Sources
- Life Insurance Settlement Association (LISA), 2025 Annual Market Data (released May 19, 2026): average payout $212,066 vs. average cash surrender value $24,360 across 2,955 transactions.
- NAIC Viatical Settlements Model Act and NCOIL Life Settlements Model Act: licensing, disclosure, and rescission frameworks.
- IRS Revenue Ruling 2009-13 and Revenue Ruling 2020-05: federal tax treatment of life settlement proceeds.
- Florida Statutes Chapter 626, Part X (Viatical Settlement Act): Florida's licensing, disclosure, and 15-day rescission protections.
- Grigsby v. Russell, 222 U.S. 149 (1911): U.S. Supreme Court ruling that a life insurance policy is transferable personal property.
This page is educational and is not financial, tax, or legal advice. Life settlement eligibility, payouts, tax treatment, and regulations vary by state and individual circumstances. Proceeds may be taxable in part and can affect eligibility for need-based programs such as Medicaid. Consult a licensed tax professional, attorney, or benefits counselor before making decisions about your policy. Individual results vary; there is no guarantee that every applicant receives an offer. Last reviewed June 10, 2026.