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Life Settlement Basics
Start here — what a life settlement is and how it differs from surrender.
- How is a life settlement different from surrendering or lapsing a policy?
- How much can I expect to receive for my policy?
- What are the risks of selling a life insurance policy?
- What is a life settlement?
- What types of life insurance policies qualify for a settlement?
- Who buys life insurance policies in a life settlement?
- Why would someone sell their life insurance policy?
Eligibility & Valuation
Who qualifies, what buyers look for, and how offers are calculated.
- Can a term life insurance policy qualify for a settlement?
- Do age and health play a role in eligibility and pricing?
- Does my outstanding policy loan affect eligibility or value?
- How do insurers and buyers calculate an offer for my policy?
- What factors determine the value of my life insurance policy?
- What is the minimum face value needed to qualify?
- Who is eligible to sell their life insurance policy?
How the Process Works
Timelines, documents, and what to expect from application to funding.
- How do buyers evaluate my medical records and policy details?
- How do I start the life settlement process?
- How long does the process usually take from application to closing?
- What documents are required to sell my life insurance policy?
- What happens after I receive an offer on my policy?
- What happens to my beneficiaries once I sell my policy?
- What role does a broker or marketplace play in the process?
Tax & Legal Considerations
Taxes, Medicaid, regulation, and legal protections by state.
- Are life settlements regulated by the state?
- Do I need a lawyer to complete a life settlement?
- How are life settlement proceeds taxes?
- How will selling my policy affect Medicaid eligibility or other benefits?
- Is the buyer legally responsible for future premium payments?
- What protections are in place to ensure the seller’s privacy and security?
- Will my beneficiaries owe taxes after I sell my policy?
For Agents & Advisors
Guidance for financial advisors and insurance agents.
- How are commissions structured in life settlement transactions?
- How can financial advisors help clients with life settlements?
- How can offering life settlements strengthen client relationships?
- How do advisors identify clients who may benefit from a life settlement?
- What compliance and disclosure rules apply to agents?
- What resources exist for agents to learn about the secondary market?
- What role do insurance agents play in the settlement process?