Sell Your Life Insurance Policy for Cash

Yes. If the insured is generally 65 or older and the policy has a death benefit of at least $100,000, it often qualifies to be sold for a lump-sum cash payment through a life settlement. The buyer takes over the premiums and receives the death benefit later. You receive cash now, often well above the policy’s cash surrender value.

The average life settlement pays about 20 percent of the policy’s face value, so a $500,000 policy might return around $100,000. Most standard cases fall between 10 and 25 percent, and payouts can reach 50 percent or more for insureds with shorter life expectancies. In 2025, LISA reported an average payout of $212,066, nearly nine times the $24,360 average cash surrender value.

As a rough guide, a $100,000 policy commonly sells for somewhere between $10,000 and $25,000, and more if the insured’s health has declined significantly. The exact figure depends on age, health, policy type, and the premiums needed to keep the policy in force. An estimate prices your specific policy.

Most life settlement buyers look for an insured who is 65 or older, so that is generally how old you have to be for a standard life settlement. There is no upper age limit, and offers often improve with age. Policyholders under 65 can sometimes qualify if they have a serious or chronic health condition, which is usually handled as a viatical settlement rather than a standard life settlement.

Often, yes. A convertible term policy can usually be converted to permanent coverage and then sold, frequently with no new medical exam. Even a standard term policy may qualify if the remaining term is long enough to outlast the insured’s life expectancy.

Yes. Universal life and variable life are commonly sold, and universal life is the most frequently sold of all. Whole life can be sold too, though its fixed premiums and any large loan or cash value can make it harder to place.

No. You do not need to be sick to sell your policy. A decline in health since the policy was issued can increase your offer, but many healthy seniors qualify based on age and policy type alone.

Yes. A paid-up policy can be sold. Because little or no further premium is owed, paid-up policies are often especially attractive to buyers and can draw strong offers.

Usually yes. An outstanding policy loan is paid off from the proceeds when the sale closes, and you receive the remaining balance. A loan does not disqualify you.

Often, yes. If the trust document gives the trustee authority to sell or transfer trust assets, the trustee can sell a trust-owned policy, including one held in an irrevocable life insurance trust (ILIT), through a life settlement. The proceeds are paid to the trust.

It often makes sense when the coverage is no longer needed, the premiums have become a burden, or you would otherwise let the policy lapse or surrender it for little. It may not make sense if your family still depends on the death benefit. Because the proceeds can affect taxes and need-based benefits like Medicaid, it is worth speaking with a professional before you decide.

No. As your licensed broker, Citizens Life Group reviews your policy and gives you an estimate at no cost, and the broker commission is paid from the settlement proceeds only if you decide to sell. You should never pay anything upfront to explore a life settlement.