Your Parent’s Life Insurance Policy Is a Financial Asset — Not Just an Expense
If your mom or dad is about to let a life insurance policy lapse because they can’t afford the premiums, they could be walking away from tens of thousands of dollars. We’ll tell you what the policy is actually worth — for free.
What Most Families Don’t Know Until It’s Too Late
A life settlement is the sale of a life insurance policy you no longer need. Instead of letting it lapse or surrendering it to your insurance company for pennies on the dollar, you sell it to a licensed buyer who pays you a lump sum — typically 3 to 5 times more than the surrender value. The buyer takes over premium payments and receives the death benefit. You walk away with cash.
What happens to a $500K policy
Based on a $500,000 universal life policy, age 76. Actual values vary by policy type, health, and market conditions.
How It Works
Four steps. No surprises. You stay in control the entire time.
Check Eligibility
Answer 5 questions about your parent’s policy. Takes less than 2 minutes. No personal health information required at this stage.
Get a Free Estimate
Based on the policy details, we’ll provide an estimated value range within 48 hours. No cost, no commitment.
Review Real Offers
If the policy qualifies, licensed buyers compete to make an offer. You and your parent see every bid. You choose whether to proceed.
Get Paid
Once an offer is accepted, the transaction is processed through a licensed clearinghouse. Funds are deposited directly.
A Regulated, Established Industry
Life settlements are not new. They are one of the most regulated financial transactions in the United States.
Legal Since 1911
The U.S. Supreme Court ruled in Grigsby v. Russell (1911) that life insurance policies are personal property that can be freely sold. Life settlements are regulated in 43+ states.
A Multi-Billion Dollar Market
In 2020 alone, more than 3,200 policies were settled for a combined value of $4.6 billion. This is a mature, institutional market.
Licensed Buyers Only
All settlement transactions go through state-licensed providers. Buyers include pension funds, university endowments, and major asset managers.
Trusted Carriers
Policies from A+ rated carriers are commonly settled: MetLife, Prudential, John Hancock, Lincoln Financial, and many others.
Common Questions
No. Life settlements have been legal since the U.S. Supreme Court ruled in Grigsby v. Russell (1911) that a life insurance policy is personal property that can be sold. The industry is regulated in 43+ states with strict licensing, disclosure, and consumer protection requirements. Every transaction involves licensed entities and is subject to state oversight.
Licensed life settlement providers and institutional investors. These include pension funds, university endowments, and major asset management firms. They are regulated, audited, and required to hold state licenses in every state where they operate.
No. Insurance companies cannot legally prevent the sale of a policy. They are also not required to inform policyholders that selling is an option — which is why most people have never heard of life settlements. The carrier must process the ownership transfer once all parties have signed the required documents.
The value depends on several factors: the insured’s age, current health, policy type, face value, and premium structure. On average, life settlement offers are 3 to 5 times the cash surrender value. A policy with a $500,000 face value might receive offers ranging from $25,000 to $50,000, depending on circumstances.
For a preliminary estimate, no. To receive a formal, binding offer, yes — buyers need medical records to generate a life expectancy estimate. Records are only shared with state-licensed entities, and your parent must provide explicit written consent before any records are requested. Nothing happens without permission.
Life settlement proceeds may be taxable. The Tax Cuts and Jobs Act of 2017 (TCJA) improved the tax treatment of life settlements, allowing sellers to use the cost basis of premiums paid. However, tax situations vary. We strongly recommend consulting a qualified tax advisor before completing any transaction.
Sometimes. Term life policies can be sold if they are convertible to a permanent policy. Universal life and whole life policies are the most commonly settled policy types. If you’re not sure what type of policy your parent has, select “Not Sure” in our form and we’ll help you figure it out.
Check Your Parent’s Policy Value — Free, Confidential
Answer a few questions to see if the policy qualifies. Takes about 2 minutes.