In the world of estate planning, life insurance can be a valuable tool both while the insured is alive and after they pass away. However, the value of the policy during the client’s lifetime is too often overlooked. That’s where life settlements are emerging as an essential estate planning strategy—allowing policyowners to unlock hidden value and generate liquidity from their policy while they’re alive. Every insurance policy should be evaluated as part of a comprehensive estate review. A life settlement offers that opportunity: a strategic solution that transforms an underperforming policy into immediate cash and a high-impact financial tool.

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 payment. This payout is typically significantly higher than the cash surrender value, offering an alternative to lapsing or surrendering the policy.

The buyer becomes responsible for future premiums and receives the death benefit upon maturity. For high-net-worth individuals, trustees, or estate managers, it’s a powerful liquidity event that can support tax planning, charitable giving, or portfolio diversification.

Key Benefits Of Life Settlements In Estate Planning

• Unlock immediate liquidity to reinvest or redistribute within the estate
• Eliminate ongoing premium payments and increase financial flexibility
• Fund estate taxes, equalize inheritances, or support philanthropic goals
• Reallocate assets to better-performing or more suitable financial vehicles
• Optimize legacy strategies with professional policy appraisal and market insights

When Should You Consider a Life Settlement?

Ask these three questions:

• Is the policy still aligned with the estate’s goals?
• Have there been changes to tax laws or net worth that impact insurance needs?
• Could the estate benefit more from cash today than from a future death benefit?

If the answer is “yes” to any of these, it’s time to explore a life settlement as part of your comprehensive wealth strategy.

Estate Planning: Why a Life Settlement with LifeRoc Can Unlock Hidden Value

LifeRoc is the trusted life settlement provider for top financial advisors, fiduciaries, attorneys, and policyholders nationwide.

We bring:

• Over $20 billion in transacted settlements
• 200+ years of combined industry experience
• Access to our large industry leading network of funders
• A free, 24-hour detailed policy appraisal
• In-depth opportunity cost analysis to evaluate ROI and legacy impact
• White-glove, point-of-sale support, including direct collaboration with trustees, CPAs, attorneys, and clients

At LifeRoc, we’re not just facilitating transactions — we’re providing best-in-class service and financial solutions.

Get Started With A Free Policy Valuation

Whether you’re an advisor managing client portfolios or an individual reviewing your own estate plan, the time to evaluate your life insurance asset is now.

Reach out to LifeRoc today to learn more or take advantage of our no-obligation, detailed policy appraisal. We would be honored to work with you and deliver exceptional service and solutions to meet your estate planning needs.