Frequently Asked Questions

A life settlement is the sale of an existing life insurance policy to a third-party buyer for a lump-sum cash payment that is greater than the cash surrender value but less than the death benefit. It's a legal, regulated transaction available in most states. The buyer takes over ownership of the policy, pays all future premiums, and eventually collects the death benefit. You receive cash today, with no further obligations.

They're similar but not identical. A viatical settlement is specifically for people with a terminal or chronic illness, where life expectancy is typically two years or less. A life settlement is available to anyone who qualifies based on age and policy value — you don't need to be sick or terminally ill. Most seniors who work with Allan are dealing with a policy they no longer want or need, not a terminal diagnosis.

Absolutely. Life settlements are legal in all 50 states and regulated in 43 states. The industry is governed by state insurance departments and follows strict disclosure, consumer protection, and licensing requirements. Allan is a licensed life settlement broker operating in full compliance with applicable regulations.

Your insurance company has no financial incentive to tell you. When you surrender a policy, they pay you the surrender value and keep the difference between that and the eventual death benefit. That difference can be enormous. An independent life settlement broker like Allan represents your interests — not the insurance company's — and is motivated to get you the highest possible price.

A broker represents you (the seller) and shops your policy to multiple buyers to generate competition and maximize the offer you receive. A provider is typically the buyer or acts on behalf of buyers. Working with an independent broker is almost always better for sellers. Allan is an independent broker — his only financial incentive is to get you the highest settlement, because his compensation is based on the transaction amount.

Yes. Your personal, health, and financial information is kept strictly confidential. It is shared only with buyers who need it to evaluate your policy, and all buyers are bound by confidentiality obligations. We never sell or share your information for marketing purposes. See our Privacy Policy for complete details.

From initial consultation to cash in hand, the typical timeline is 30 to 60 days. Some cases can close faster depending on the policy type, buyer interest, and how quickly medical records are obtained. Complex policies or policies requiring extensive medical underwriting may take longer. Allan will give you a realistic timeline estimate based on your specific situation.

Typically, you'll need to provide: a copy of your life insurance policy, recent premium statements, a policy illustration (available from your insurance company), and medical records authorization (HIPAA form). Allan will guide you through exactly what's needed and can help you obtain documents if necessary. The process is designed to be as simple as possible for you.

The buyer takes over ownership of the policy through a formal ownership transfer coordinated with your insurance company. They assume all future premium payments. You receive your cash settlement and have no further obligations related to the policy. Your insurance company will confirm the change of ownership, and your beneficiaries will no longer be named on the policy.

Most state regulations provide a rescission period — typically 15 to 30 days after signing the settlement agreement — during which you can cancel the transaction without penalty. The specific rescission rights available to you depend on your state of residence. Allan will explain the applicable rights clearly before you sign anything.

You should keep your policy in force and continue paying premiums during the settlement process. A policy that has lapsed or is at risk of lapsing is less attractive to buyers and can result in lower offers or no offers at all. If premium costs during the process are a concern, discuss this with Allan early — there may be options available depending on your policy type.

Not before you accept an offer. Once you accept an offer and begin closing, your insurance company is notified as part of the ownership transfer process. This is a routine, legal procedure. You are not required to notify your insurer in advance, and doing so before you have an accepted offer generally serves no purpose.

Policies with outstanding loans can still qualify for a life settlement. The loan balance will typically be deducted from the settlement proceeds at closing, with the remainder going to you. If the loan amount is large relative to the expected settlement, Allan will explain this clearly so you understand exactly what you'll net from the transaction.

Settlement amounts vary based on your age, health, policy type, face value, and ongoing premium costs. On average, life settlements pay 4 to 8 times the cash surrender value your insurance company would offer. Some cases deliver significantly more — our client Guy and Judy received 8.3 times their surrender value. Allan will give you a realistic estimate during your free consultation.

No. There is no upfront cost to you. Allan's compensation comes from the transaction itself — you never pay out of pocket for the consultation, policy review, or settlement process. His fee is a percentage of the settlement amount, paid at closing from the proceeds. This structure means Allan's financial interests are fully aligned with yours: the higher your settlement, the better for everyone.

Life settlement proceeds may be subject to taxes. The tax treatment is determined by comparing the proceeds to the premiums you've paid (your tax basis) and the policy's cash surrender value. The portion above your cost basis may be taxed as ordinary income or capital gains, depending on the circumstances. We strongly recommend consulting with your tax advisor before completing the transaction. The after-tax proceeds of a life settlement are almost always superior to any alternative, but you should understand the full picture.

Once you sell the policy, the death benefit will no longer go to your beneficiaries — the buyer owns the policy and will ultimately receive the death benefit. However, you receive a significant cash payment now. Many clients find this is a better use of the asset: they can use the proceeds to support family today, cover care costs, or improve their retirement, rather than having a death benefit paid after they're gone. This is a personal decision that Allan can help you think through clearly.

Your health is a significant factor in determining your settlement value. Buyers order third-party life expectancy reports to assess the insured's projected lifespan. A shorter estimated life expectancy means the buyer expects to receive the death benefit sooner — which increases what they're willing to pay today. A change in health since the policy was originally issued (even moderate changes) can significantly increase your policy's value. Providing complete, accurate medical records is important for maximizing your settlement.

Generally, you should be 65 or older with a life insurance policy that has a face value of $100,000 or more. Universal life, whole life, and convertible term policies are all eligible. A change in health since the policy was issued can increase your value significantly. The only way to know for certain whether your policy qualifies — and what it might be worth — is a free consultation with Allan.

Universal life, whole life, variable life, survivorship (second-to-die), and convertible term policies can all qualify. The most common policies settled are universal life and whole life with face values above $100,000. The policy type affects the buyer's ongoing cost obligations and therefore influences the offer price. If you're unsure what type of policy you have, Allan can help you figure it out.

Standard term policies cannot typically be settled because buyers need permanent coverage they can maintain. However, if your term policy has a conversion option — meaning it can be converted to a permanent policy — it may qualify. Many term policies have this feature and policyholders aren't aware of it. Allan can review your policy to determine whether a conversion-and-settle strategy makes sense for your situation.

Yes. Most buyers require the policy to have been in force for at least two years to be past the contestability period — during which an insurance company can contest the policy's validity. In practice, most policies considered for settlement have been in force for many years, so this is rarely a limitation. The two-year minimum is a legal protection for buyers, not a common barrier for sellers.

Yes, survivorship policies can qualify for a life settlement, though the process differs slightly. These policies cover two lives and pay the death benefit after the second insured passes away. They are typically evaluated after the first insured has passed, at which point the policy is closer to paying the death benefit and can be more attractive to buyers. Allan has experience with survivorship policy settlements and can explain how the process works for your specific situation.

With Allan, you work directly with someone who has 50+ years of insurance industry experience and more than 20 years specializing exclusively in life settlements. He knows the market, knows the buyers, and knows how to position your policy to generate the best offers. He answers his own phone, explains everything in plain English, and gives you the same personal attention he'd want if he were in your position. You are not a file number — you're a person with a unique situation that deserves individual expertise and care.