What is a life settlement?
What Is a Life Settlement?
A life settlement is the sale of an existing life insurance policy to a third-party buyer for a lump sum of cash. Instead of letting a policy lapse or surrendering it to the insurance company for little or nothing, a policyholder can sell it on the secondary market—often for significantly more than the surrender value.
When you complete a life settlement:
- The buyer takes over responsibility for future premium payments.
- You receive an immediate cash payout (typically 10%–60% of the policy’s face value, depending on eligibility factors).
- The buyer becomes the new beneficiary and collects the death benefit when the insured passes away.
This option can provide seniors and policyholders with financial flexibility at a time when they may no longer need or want their coverage. For example, many choose to sell their policy to help cover retirement expenses, medical bills, long-term care, or simply to unlock liquidity from an underutilized asset.
Why It Matters
- Billions of dollars in life insurance lapse every year—policies that could have had real cash value if sold instead.
- A life settlement turns a policy into an asset you can use while alive.
- It gives policyholders control and choice over something they’ve been paying into for years.
Quick Example
Imagine you own a $500,000 life insurance policy you no longer need. If you surrender it, the insurer may only give you $5,000. But through a life settlement, you could sell that same policy for $50,000 or more, depending on your age, health, and policy details.
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*The Life Settlement Estimate Calculator provided on this website is intended to provide an estimate of the potential value of a life insurance policy and is not a guarantee of the actual value that a policy may receive in a life settlement transaction.
Settlewealth.com is a website owned and operated by Settle Life, Inc. (“Settle”), a financial technology and life settlement marketing company based in the United States. Settle is not a licensed life settlement provider, nor a licensed life settlement broker, and does not engage directly in regulated life settlement transactions as a representative of policyholders. Our core function is to serve as a facilitative platform, designed to connect qualified life insurance policy owners with licensed life settlement providers, institutional buyers, and other investment-related entities, some of which may be affiliated with or compensated by Settle. These providers and firms operate independently and are solely responsible for the purchase and servicing of life insurance policies acquired through settlement transactions.
Settle is not acting in a fiduciary capacity, and our role does not include giving financial, legal, tax, or insurance advice. We do not offer or originate bids for policies, nor do we negotiate life settlement contracts on behalf of either sellers or buyers. Rather, Settle’s platform operates as a conduit, streamlining introductions and enabling potential transactions between consenting parties. In instances where a life settlement transaction is successfully completed as a result of a referral, lead, or introduction facilitated by SettleWealth.com, Settle may receive compensation from the licensed provider or other participating entities. The nature and amount of such compensation may vary by transaction and is typically paid from proceeds allocated within the provider’s purchase structure.
In our effort to protect user privacy, the names, images, likenesses, and specific identifying details shown in testimonial examples, case illustrations, or marketing content on SettleWealth.com may be fictionalized or altered. These examples are intended solely to demonstrate potential scenarios for educational purposes and should not be interpreted as promises or guarantees of specific outcomes. All illustrations, data points, and estimates are provided for illustrative and general informational purposes only.
Completion of our Application, or any related intake forms, does not obligate any party to move forward with a transaction. All submissions are voluntary and reviewed for eligibility. Users should exercise discretion and independently verify any figures, assumptions, or conclusions shared by the platform. The Appraisal Analysis produced by Settle is a non-binding assessment designed to assist in initial evaluations only. Settle makes no representations or warranties regarding the completeness, accuracy, timeliness, or usefulness of this analysis, and disclaims all liability for decisions made based on its contents.
We encourage all users to conduct thorough due diligence before pursuing or accepting any life settlement offer. The process may have implications on Medicaid eligibility, estate planning, taxes, and future insurability. It is the responsibility of the user to consult qualified professionals as needed. Settle does not assume any responsibility for individual outcomes or the suitability of life settlements for specific users.
This service is intended for use only by residents of the United States and is void where prohibited by law. Access to or use of the platform in certain jurisdictions may be restricted and is the responsibility of the user to confirm legal compliance.
If you are using a screen reader or have difficulty accessing any part of this website, please contact us directly at (214) 531-4733 and a representative will assist you.
Settle is not acting in a fiduciary capacity, and our role does not include giving financial, legal, tax, or insurance advice. We do not offer or originate bids for policies, nor do we negotiate life settlement contracts on behalf of either sellers or buyers. Rather, Settle’s platform operates as a conduit, streamlining introductions and enabling potential transactions between consenting parties. In instances where a life settlement transaction is successfully completed as a result of a referral, lead, or introduction facilitated by SettleWealth.com, Settle may receive compensation from the licensed provider or other participating entities. The nature and amount of such compensation may vary by transaction and is typically paid from proceeds allocated within the provider’s purchase structure.
In our effort to protect user privacy, the names, images, likenesses, and specific identifying details shown in testimonial examples, case illustrations, or marketing content on SettleWealth.com may be fictionalized or altered. These examples are intended solely to demonstrate potential scenarios for educational purposes and should not be interpreted as promises or guarantees of specific outcomes. All illustrations, data points, and estimates are provided for illustrative and general informational purposes only.
Completion of our Application, or any related intake forms, does not obligate any party to move forward with a transaction. All submissions are voluntary and reviewed for eligibility. Users should exercise discretion and independently verify any figures, assumptions, or conclusions shared by the platform. The Appraisal Analysis produced by Settle is a non-binding assessment designed to assist in initial evaluations only. Settle makes no representations or warranties regarding the completeness, accuracy, timeliness, or usefulness of this analysis, and disclaims all liability for decisions made based on its contents.
We encourage all users to conduct thorough due diligence before pursuing or accepting any life settlement offer. The process may have implications on Medicaid eligibility, estate planning, taxes, and future insurability. It is the responsibility of the user to consult qualified professionals as needed. Settle does not assume any responsibility for individual outcomes or the suitability of life settlements for specific users.
This service is intended for use only by residents of the United States and is void where prohibited by law. Access to or use of the platform in certain jurisdictions may be restricted and is the responsibility of the user to confirm legal compliance.
If you are using a screen reader or have difficulty accessing any part of this website, please contact us directly at (214) 531-4733 and a representative will assist you.
