How to Get Paid Well for Your Life Insurance Policy

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Imagine being able to stop paying high life insurance premiums and receive the value from your policy in cash — right now. That's what a life settlement makes possible.

For seniors whose needs have changed, selling a life insurance policy can be far more valuable than surrendering it or letting it lapse. But not all settlements are equal. Here's how to make sure you get paid well.

What Is a Life Settlement?

A life settlement allows you to sell your life insurance policy to a licensed buyer for more than its surrender value but less than its death benefit. The buyer takes over premium payments so you don't have to. You walk away with a meaningful lump sum.

Nearly half a million seniors lapse their policies every year — and 90% of them, according to LISA, wished they had known about the settlement option.

Do You Qualify?

Basic qualifications include:

• Age 65 or older
• U.S. citizen and current resident
• Policy type: Universal Life (UL), Survivorship UL (SUL), Convertible Term, or Whole Life (WL)
• Death benefit of $100,000 or more, with premiums under 5% of face amount
• Policy active for at least 25 months (some states require 5 years)
• Issued by a U.S.-based carrier with an A.M. Best Rating of B++ or better

Steps to Selling Your Policy

1. Confirm your eligibility using the criteria above
2. Engage a licensed broker to represent your interests and submit proper documentation
3. Complete a brief medical interview so buyers can accurately value your policy
4. Receive your formal offer from the marketplace
5. Accept the offer and receive your lump-sum payment at closing

Why the Broker You Choose Matters

The single biggest variable in what you receive is which broker represents you. An experienced broker with established relationships in the secondary market — and one who goes to the marketplace with your most favorable medical profile — will consistently outperform one who doesn't. Allan Silverman has spent 20+ years building exactly those relationships.

Call (714) 271-2223 for a free, no-obligation estimate of what your policy is worth.