Can I sell my life insurance policy for cash?
Answered by 7 licensed agents
Life settlements are most commonly available to older individuals, typically age 65 or older, or those with significant health issues. The value of the offer depends on factors such as the insured's age, health, life expectancy, policy type, death benefit amount, and premium requirements.
Selling a policy can provide immediate cash that may be used for healthcare expenses, long-term care, retirement income, or other financial needs. However, there can be tax consequences, and beneficiaries will no longer receive the death benefit once the policy is sold. For that reason, it is important to carefully evaluate all alternatives, including policy loans, withdrawals, reduced paid-up options, or surrendering the policy, before making a decision.
For policy owners who no longer need or can afford their coverage, a life settlement may provide more value than simply canceling the policy and walking away.
Answered by Marc Frye on June 17, 2026
Agent Licensed in NV
Brokers Make a Difference.
Answered by Dean Chiapetto on June 17, 2026
Broker Licensed in VA, MD, NC, TN & WV
To qualify, you must meet these criteria:
Age: You are typically aged 65 or older Policy
Size: Your policy's death benefit is usually $100,000 or more.
Health Status: You may have experienced a decline in health since the policy was originally issued. (Note: If you have a terminal or chronic illness, this is specifically referred to as a viatical settlement)
Answered by Mark Maliwauki on June 17, 2026
Agent Licensed in ID
What I’ve seen is you’ll get more money for your life insurance policy if you’re older & have health issues. This makes the companies want to purchase it. You can use the cash to help with long-term care while you’re living if you don’t have long-term care insurance. Or you can use it for whatever you want.
If you’re young & healthy you may not be able to sale your life insurance policy. If you’re older & healthy, you may get less than if you were unhealthy. Hope this makes sense.
The life settlement company purchasing your policy so now they own it. They assume paying the premiums & they are now the beneficiary.
You’ll want to get with a broker so they can check all the life settlement companies for you or you can check around yourself & don’t accept the first offer.
Hope this was beneficial & answered your question.
Answered by Sandra Bailey on July 4, 2026
Broker Licensed in TN
Answered by Shane Bullock on June 7, 2026
Broker Licensed in UT, AZ, FL & 9 other states
Answered by Walt Smith on August 6, 2026
Agent Licensed in NJ
Answered by Bill Wheeler on August 20, 2026
Agent Licensed in KY
Tags: Financial Planning
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