Your life insurance was bought to solve a problem. If that problem no longer exists — the mortgage is paid, the kids are grown, the business has moved on — the policy may be worth more sold than surrendered. A life settlement lets a qualified policy owner sell an existing life insurance policy to a licensed third-party buyer for a lump sum, instead of letting it lapse or taking the cash surrender value from the carrier.
Not every policy qualifies, and no offer is ever promised. We review the policy with you, explain what a settlement would and would not do, and point you to a licensed settlement provider if it fits.
Get a Life Settlement Review
Most people only hear two options when a policy no longer fits: keep paying premiums or surrender it to the insurance company for the cash value. A settlement is a third option that many policy owners don't know exists. A short review tells you whether yours is worth exploring further, before you make a decision you can't undo.
A settlement offer, when one is made, is typically higher than the cash surrender value the insurance company would pay. How much higher depends on the policy, the insured's age and health, and current buyer demand. There are no guarantees.
Once the sale closes, the buyer takes over all future premium payments. The policy stays in force under the new owner. You keep the lump-sum proceeds and walk away from the ongoing cost.
Reviewing a settlement does not commit you to anything. If the numbers don't make sense, you keep the policy and nothing changes. We work for you, not for a buyer.
A life settlement is the sale of an in-force life insurance policy to a licensed third-party investor. You transfer ownership of the policy and the right to the death benefit. In return, you receive a one-time cash payment. The buyer pays the remaining premiums and collects the death benefit when the insured passes away.
Two short definitions, because the industry loves jargon:
A settlement sits between those two numbers. The buyer pays more than surrender value because the policy still has future value to them, but less than the face amount because they have to wait and keep paying premiums.
What Changes
Keep The Policy
Sell The Policy
Who pays the premiums
You continue to pay
The buyer takes over at closing
Who receives the death benefit
Your named beneficiaries
The third-party buyer
What you receive now
Nothing until a claim
A one-time lump sum at closing
What happens if you stop paying
The policy lapses with little or nothing paid out
Not your concern after closing
Best fit when
The original need for coverage still exists
The original need is gone and premiums have become a burden
Neither column is the right answer for everyone. The right answer depends on your coverage needs, your health, your tax situation, and what else is on your balance sheet.
If several of these fit, a review is worth the time. If none of them fit, keeping the policy is usually the better call.
Details changed to protect privacy.
A retired business owner in his seventies carried a $750,000 universal life policy he had bought twenty years earlier to cover estate taxes. His estate plan had since been restructured, and the coverage was no longer needed. He was about to let the policy lapse because the annual premium had climbed past what he wanted to spend in retirement.
We walked him through his three options: keep paying, surrender for the cash value the carrier offered, or ask a licensed settlement provider for a bid. The cash surrender number was modest. He authorized a settlement review. After medical records and policy documents went through underwriting, a licensed buyer made an offer meaningfully above the surrender figure. He accepted, stopped paying premiums, and used the proceeds to help fund a grandchild's education.
He also kept a smaller term policy in place for his wife. Settling one policy did not mean giving up coverage altogether.
Licensed in Massachusetts. Meltzer Insurance Agency is paid a commission if you complete a life settlement. Life settlement eligibility, offer amounts, and timing depend on the policy, the insured's age and health, and current market conditions. No offer is guaranteed. Life settlements are regulated at the state level.
If you are paying for a life insurance policy that no longer fits the life you have, you owe yourself the hour it takes to find out what your options really are. A review costs you nothing and commits you to nothing.
Schedule a Life Settlement Review