Eligibility: Can I Sell My Life Insurance Policy For Cash? | LISguide.com

Eligibility: Can I Sell My Life Insurance Policy For Cash?

Determining if you are eligible for a life insurance settlement can be tricky. There is a wide range of buyers who make offers based on different eligibility criteria. The question remains; can I sell my life insurance policy for cash? Luckily, working with an LIS Guide broker is simple and allows your life insurance to be reviewed by as many buyers as possible. This is the best way to truly determine your eligibility across the entire industry. Following is a brief guide to help you consider if you might be a good candidate for a life insurance settlement.

Can I Sell My Life Insurance Policy

Life Insurance Settlement Eligibility

Being eligible for a life insurance settlement is based on two primary factors:

Policy Insured Health & Life Expectancy (LE)


Life Insurance Policy Variables


Insured Health

The benchmark maximum LE for offers to be made for a life insurance policy is 15 years. With a projected LE beyond 15 years, it is unlikely considering policy premiums; an offer will be made. Following are general guidelines to consider:

Under age 65 – Insured should have some type of terminal illness.

Age 66-75 – Insured should have some major & chronic health issues.


Age 76-80 – Insured should have some chronic health issues.


Age 80+ – Health qualification is likely, an offer will depend on the policy variables.


Check Your Eligibility

Type Of Eligible Insurance


A common question is: “Can I sell my term life insurance policy for cash?” Term policies almost always must be convertible to a permanent insurance product. It is essential to understand the term to convert (conversion period) is not always the same as the term length, it often ends before. A non-convertible term may receive offers. However, it depends on a review of the original term contract and the insured having severe health issues.

Universal Life

Universal Life policies are permanent products and preferred by buyers. A universal life policy is flexible & adjustable, so in-force illustrations are typically ordered running to different ages to show the difference in premium.

Whole Life

Whole Life policies are permanent products that are not flexible. The premium stays the same throughout the life of the policy. These policies can endow (face amount pays out regardless of insured) at a certain age, so that can often help assure buyers making offers.


Survivorship Universal Life policies can be sold, and typically have low premiums. The healthier of the two insureds is used to price these.

Policy Variables

During the eligibility evaluation process, all sorts of information will be gathered & verified about your life insurance policy. What buyers are and are not looking for includes:


When pricing, policy premiums are considered as a percentage (premium/face). A premium/face under 4% is what buyers like to see. However, as age increases so does premium, so policies can easily still receive offers with a premium/face above 10%.

Policy face amount

Policy face amount over $50,000 – Due to the costs involved in closing the life insurance settlement transaction & maintaining a policy thereafter, some buyers only look at policies over $100k or $250k.

Existing Loans

Existing loans are acceptable as long as they are disclosed to buyers before an offer is made. If you are not sure, ask your broker. This is typically determined by your broker while gathering policy documentation.


No collateral assignment or other outstanding irrevocable designation without consent to release.

Determining Eligibility

When you begin working with your LIS Guide broker, there will be a life settlement application needed to determine eligibility. This application gathers personal & policy information and includes:

Carrier Information Release

Your broker will be able to contact the insurance carrier to order illustrations, annual statements, premium payment history & inquire about policy values. Note: sometimes this release takes time for carriers to acknowledge, so a three-way call with the carrier and your broker may be needed to speed up the process.

HIPAA Authorization

Your broker will be able to order medical records from all the doctors you have listed on in the life settlement application. It is essential to list all medical facilities you have been seen at on the application so the complete medical records can be retrieved.

Applicable State Disclosures

Your broker will include any brochures or forms required by your state and will maintain full compliance with state regulations throughout the entire process.

Sell My Life Insurance Policy!

Being informed and working with the right life settlement company is important when deciding to sell your life insurance. There has never been a better time to pursue a life settlement. Start the process today and find out how much value your life insurance policy holds.

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