The Process, Start to Finish
How to Sell Your Life Insurance Policy
Selling takes eight steps and typically 60 to 90 days: share your policy details, we gather the records, buyers bid against each other, you review the offers, and you get paid. No upfront cost, and you can stop at any point.
8
Simple steps
Most are handled by your broker
60 to 90
Days, start to payment
Typical timeline
$0
Upfront cost
No fees unless you sell
Nearly 9x
vs. cash surrender value
2025 average payout (LISA)
Timelines and payouts are industry averages, not a quote. Individual results vary, and not every policy receives an offer.
The Sale Is Called a Life Settlement
When you sell a life insurance policy you no longer need or can no longer afford, the transaction is called a life settlement. An institutional buyer pays you a lump sum now, takes over the premium payments, and collects the death benefit later.
Life settlements are legal, state-regulated transactions, and they usually pay far more than cancelling the policy for its cash surrender value. The steps below show exactly how the sale works from your side of the table.
Before Step 1: Who Qualifies
- The insured is 65 or older, or has serious health conditions
- The policy's face value is $100,000 or more
- Universal life, whole life, or convertible term coverage
Close but not sure? See which policy types can be sold.
The Full Process, Step by Step
Eight steps from your first call to money in your account. At each one, here is what happens, what you do, and what your broker handles for you.
Phase 1 · Application & Review
1 to 3 daysShare Your Policy Details
5 minutesFill out the short form below or give us a call. We'll ask about your policy type, face value, and a little about the insured's age and health. The estimate is confidential, and there is no obligation to sell.
What you do
Five minutes on the form, or one phone call.
What we handle
We review your details and respond within one business day.
Initial Review & Qualification
1 business dayWe review your policy type, face value, and basic health information to confirm your policy is likely to attract competitive offers. If it qualifies, we explain exactly what happens next. If it does not, we explain why.
What you do
Nothing yet. We'll call you to talk it through.
What we handle
Confirm your policy qualifies and answer every question in plain language.
Phase 2 · Underwriting & Marketing
4 to 8 weeksGather Your Documents
A few daysFour basic items get the process moving. You sign one HIPAA-compliant medical records authorization, and we coordinate the rest with your insurance company and doctors' offices.
The document checklist
- Policy summary or in-force illustration
- A recent premium statement
- Medical records authorization (HIPAA)
- Photo ID
What you do
Sign the authorization and share your policy paperwork. Can't find something? We help you request it.
What we handle
Chase down the records and confirm everything buyers need.
Life Expectancy Assessment
1 to 2 weeksIndependent medical underwriting firms review your records to estimate how long the policy is likely to stay in force, which is what buyers price against. There is no medical exam and no doctor visit. The report is confidential and used only to value your policy.
What you do
Nothing. No exam, no appointment.
What we handle
Coordinate the independent reports and keep things moving.
Buyers Compete for Your Policy
2 to 4 weeksThis is where a broker makes the difference. Your policy is presented to a network of institutional buyers who bid against one another. Whether your policy is handled by Citizens Life Group or an affiliated brokerage, your broker represents you, the seller, as a fiduciary, and pushes for the highest offer.
What you do
Nothing. The bidding runs on your behalf.
What we handle
Run the competition and push buyers to raise their offers.
You Review the Offers
Your timelineEvery offer is presented to you in writing, and we explain each one in plain language. Take the time you need and involve your family if you like. You can decline them all and keep your policy.
What you do
Review the numbers at your own pace and make the call.
What we handle
Walk you and your family through every offer.
Phase 3 · Closing & Payment
2 to 4 weeksClosing & Transfer
2 to 4 weeksIf you accept an offer, the buyer prepares the closing documents. You sign the transfer paperwork with a notary, which we arrange around your schedule. Your funds go into a secure escrow account while ownership transfers to the buyer.
What you do
Sign the transfer documents with a notary. We set it up.
What we handle
Review the closing package and coordinate escrow with the buyer.
You Get Paid
60 to 90 days totalOnce the insurance company confirms the transfer, the escrow agent releases your money by check or wire. From first call to payment, the typical timeline is 60 to 90 days.
What you do
Receive your check or wire transfer.
What we handle
Verify the transfer and confirm the escrow release.
No Cost, No Obligation
Start Step 1: Your Free Estimate
Three short screens tell us enough to review your policy. We respond within one business day, and if you decide not to sell, you pay nothing.
How long does the process take?
Typical total: 60 to 90 days from start to payment. Complex cases and very large policies can take longer.
Prefer to talk? Call (321) 270-0279Free · No Obligation · Confidential
See What Your Policy Is Worth
Prefer to speak with someone right now?
(321) 270-0279What Selling Actually Pays
In 2025, the average life settlement paid sellers $212,066, while the average cash surrender value on those policies was $24,360 (LISA 2025 Annual Market Data). That is nearly 9 times more than cancelling. Your offer depends on your age, health, policy size, and premium costs.
Average life settlement, 2025
$212,066
Sold on the open market with buyers competing (LISA)
Average cash surrender, 2025
$24,360
Cancelled back to the insurance company (LISA)
Industry averages, not a quote or a guarantee. Individual results vary, and not every policy receives an offer.
Want your own picture? See what determines your policy's worth, or check your eligibility in about a minute with the life settlement calculator. Weighing your alternatives? Compare all the ways to cash out a life insurance policy.
Two Ways to Sell, One Big Difference
You can sell directly to a single licensed buyer, called a provider, or through a licensed broker who makes multiple buyers compete for your policy. A provider negotiates for itself. A broker owes you a fiduciary duty, which means it is legally required to act in your best interest.
Citizens Life Group is a licensed life settlement brokerage that represents you, the seller, and shops your policy competitively to maximize your offer.
Selling Direct to One Buyer
- ·One offer, take it or leave it
- ·The buyer profits by paying you less
- ·No legal duty to maximize your payout
Selling Through a Licensed Broker
- ✓Multiple buyers bid against each other
- ✓Fiduciary duty to you, by law
- ✓Every fee disclosed in writing before you sign
Want the full comparison? Read life settlement broker vs. provider: who's on your side?
Five Quick Checks Before You Sell
The advice we give every caller, whether or not they sell through us.
- 1
Keep your policy in force. Keep paying premiums while you decide. A lapsed policy is worth nothing to anyone.
- 2
Make buyers compete. A single direct offer has no competition behind it. Bidding is what moves your price up.
- 3
Ask about your benefits. A lump sum can affect need-based programs like Medicaid. Check before you sell, not after.
- 4
Understand the taxes. Proceeds are often only partly taxable, and everyone's situation is different. Talk with a tax professional first; Citizens Life Group does not provide tax advice. Read the tax guide.
- 5
Verify licensing. Look up any broker or provider by name with your state insurance department before you share records. In Florida: the DFS Licensee Search.
What Happens After You Sell
Most guides stop at the check. Here is what the months after closing actually look like.
The buyer takes over the policy
The buyer becomes the owner and beneficiary and pays every premium from then on. You never pay into the policy again.
Expect occasional check-ins
The buyer's servicing company will contact you, or a contact person you choose, a few times a year to verify your health status. It is routine: usually a short call or letter.
You can briefly change your mind
State law gives you a rescission window, typically 15 to 30 days, and in several states it starts when you receive the money. Cancel in time, return the funds, and your policy is restored.
Then the sale is final
After the window closes, your beneficiaries no longer receive the death benefit. It is why many families make this decision together, and we welcome that.
Frequently Asked Questions
How long does it take to sell a life insurance policy?
Typically 60 to 90 days from your first call to receiving payment. The longest phases are the life expectancy assessment and the competitive bidding process. Complex cases or very large policies can take longer.
What documents do I need to sell my life insurance policy?
Four basics: your policy summary or in-force illustration, a recent premium statement, a HIPAA-compliant medical records authorization, and a photo ID. Your broker guides you through each item and coordinates the rest with buyers.
Do I need a broker to sell my life insurance policy?
No, you can sell directly to a licensed buyer, called a provider. The difference is representation: a provider negotiates for itself, while a licensed broker represents you as a fiduciary and makes multiple buyers compete for your policy, which typically raises the offer.
Can I change my mind after selling my policy?
Yes, for a limited time. Most states require a rescission period, typically 15 to 30 days depending on your state, and in several states the clock starts when you receive the money. During that window you can cancel the sale, return the funds, and get your policy back.
What does it cost to sell my life insurance policy?
Nothing out of pocket. The estimate and bidding process are free, and the broker's commission is paid from the settlement proceeds at closing and disclosed in writing before you sign anything. If you do not sell, you owe nothing.
Are the proceeds from selling my policy taxable?
Often only in part. In general, money up to what you paid in premiums comes back tax free, and amounts above that may be taxed. Every situation is different, so talk with a tax professional before you sell. Citizens Life Group does not provide tax advice. See our guide to life settlement taxes.
Can I sell a term life insurance policy?
Often, yes. Term life can qualify if it has a conversion option, and it is valued on face amount and health rather than surrender value. Standard term without a conversion option usually does not qualify. See how selling a term policy works.
Will selling my policy affect Medicaid or other benefits?
It can. A lump sum payment can count as an asset for need-based programs like Medicaid or SSI. If you receive these benefits, tell your broker early and consider speaking with an elder law attorney before you sell.
Do my beneficiaries have to agree to the sale?
Usually no. As the policy owner, the decision is yours; only an irrevocable beneficiary must consent to the sale. Many families still decide together, and we are glad to include your adult children on any call.
Reviewed by
Jeff Hallman, licensed life settlement broker, FL Lic. 0266. Page updated July 2026.
Ready When You Are
Step 1 takes about five minutes and commits you to nothing. Or call and talk it through with a real person first. Want the bigger picture? Read the complete guide to selling your life insurance policy.