8 Simple Steps to Selling Your Life Insurance Policy

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A life settlement can be an excellent source of income for retirement — but many people don't pursue it simply because they don't understand the process. Here are the eight steps from start to finish, so you know exactly what to expect.

Step 1: Determine Your Eligibility

The basic eligibility criteria: Are you 65 or older? Does your policy have a death benefit of $100,000 or more? Has it been active for at least five years with a U.S.-based insurer? If yes, you're likely a candidate — subject to your medical status.

Step 2: Engage a Broker and Get a Preliminary Valuation

Working with a licensed broker like Allan Silverman is strongly recommended. A broker ensures your interests are represented, provides a preliminary estimate of value early in the process, and guides you through every step.

Step 3: Submit an In-Force Illustration and Explore Alternatives

Your broker will request an in-force illustration from your insurance carrier — a document that shows the minimum premium cost to keep the policy to maturity and the projected account value. This illustration gives both you and your broker the information needed to evaluate the settlement opportunity versus alternatives.

Step 4: Complete Paperwork and Schedule a Medical Interview

You'll fill out a HIPAA authorization form, a medical questionnaire, and schedule a brief health interview. This step establishes the medical picture that drives valuation.

Step 5: Await Policy Review and Formal Valuation

Your broker obtains your medical records and a Life Expectancy Report. Using these inputs, they calculate a Formal Valuation — the precise estimated value of your policy in the secondary market.

Step 6: Receive Your Formal Valuation

The Formal Valuation confirms your expected return and sets the baseline for the marketplace bidding phase. At Silverman Life Settlements, we use industry-standard actuarial pricing software to ensure accuracy and maximize your outcome.

Step 7: Underwriting for Marketplace Bidding

Life expectancy has the greatest impact on settlement value — lower life expectancy means higher value. Your broker submits your most favorable medical profile to the marketplace to attract the highest possible bids. Allan personally ensures this step is handled to maximize your offer.

Step 8: Receive and Consider the Formal Offer

You'll receive a formal offer from a buyer. If you accept, you receive a lump-sum cash payment. The buyer then takes over all future premium payments and receives the death benefit when you pass. Your broker handles the contracts and closing process.

The entire process typically takes 30 to 90 days from start to closing. If you're ready to explore what your policy is worth, Allan will walk you through every step personally.