
The amount you can receive for a life insurance policy in a life settlement varies widely, but most policies sell for more than the surrender value and less than the full death benefit.
Offers depend on several factors, including the insured person’s age, overall health, policy size, premium costs, and the type of insurance policy. In general, many life settlements fall between 10% and 40% of the policy’s death benefit, although the exact amount varies from case to case.
Older policyholders or individuals with certain health conditions often receive stronger offers because buyers expect to pay premiums for a shorter period of time before collecting the death benefit. Policies with stable premium structures, such as universal life, whole life, guaranteed universal life, and convertible term policies, typically attract more interest from buyers.
It is important to understand that online estimates are only rough projections. The actual value of a policy is determined after buyers review the policy details and medical information.
Through Settle’s marketplace, multiple licensed buyers can evaluate a policy and compete to submit offers. This competitive process can help policyholders understand the true market value of their policy and potentially receive higher offers than they might from a single buyer.
Even if the final offer is lower than expected, a life settlement can still provide meaningful value—especially if it replaces ongoing premium payments or prevents the policy from lapsing with no return.
