Tax & Legal Considerations

Is the buyer legally responsible for future premium payments?

Yes. Once a life settlement closes, the buyer becomes the legal owner of the policy and is fully responsible for paying all future premiums.

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The seller has no further financial obligations to the insurance company. This transfer of responsibility is part of what the buyer pays for when purchasing the policy.

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The buyer submits ownership change paperwork to the insurance carrier, which updates its records and confirms that the new owner will maintain the policy going forward.

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This legal transfer ensures that the seller is released from the cost of premiums permanently.

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I didn’t even know you could sell a life insurance policy until I found Settle. They explained everything clearly, handled the paperwork, and got me an offer much higher than I expected.
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I’d looked into selling my policy before, but the process always felt confusing. Settle made it easy to understand, kept me updated, and helped me close quickly with no pressure.
– Tom S., New Hampshire
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© 2025 Settle Life, Inc. | All Rights Reserved
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.

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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.

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