Life insurance is often one of the more valuable assets people own — yet too often, policies are allowed to lapse or are surrendered for minimal value. A life settlement can be a powerful alternative, allowing policyholders to sell their life insurance for cash. Here are common situations where a life settlement may be the right choice:

1. Business Transitions: Selling or Retiring

Some business owners purchase life insurance policies for buy-sell agreements or key-person coverage during their careers. But when the business is sold, closes, or the owner retires, these policies often lose their original purpose. Instead of letting them lapse or go unused, a life settlement may offer immediate liquidity for these policies—providing extra income for retirement or other financial goals.

2. Decline In Estate Value Or Estate Tax Liability

Changes in the economy or tax laws may reduce the need for life insurance policies that were originally purchased for estate planning. A life settlement can provide cash today instead of paying premiums for coverage that may no longer be necessary.

3. A Term Policy Approaching Expiration

Term life insurance is one of the most overlooked opportunities for a life settlement. Since term policies typically have no cash surrender value, selling the policy before it expires can generate “found money” for the policyholder.

4. Premiums Become Unaffordable

Many seniors are surprised by increasing premium costs that exceed what they can comfortably pay. Rather than surrendering or walking away from the policy, a life settlement can eliminate premium obligations while providing a lump-sum payout.

5. Facing A Serious Illness

Certain terminal or chronic illnesses can lead to high medical and care-related costs. In these situations, a life settlement may provide critically needed funds to help cover treatments, medication, or long-term care.

6.Enjoying a Stress-Free Retirement

After years of paying premiums, some retirees find their life insurance policies are no longer essential for family protection or estate planning. Rather than continuing to carry the cost—or letting the policy lapse—a life settlement can transform the policy into cash. This extra income can help cover healthcare, travel, or simply create peace of mind, making retirement more enjoyable and stress-free.

7. Other Life Changes

There are many other circumstances where a life settlement may be an option — including divorce, healthcare expenses, underperforming policies, or simply needing cash for personal or family support.

Policy Parameters To Keep In Mind

While every case is unique, common requirements for life settlement eligibility include:

• Policy Age: At least 2 years since the policy was issued

• Death Benefit: $100,000 or more

• Insured’s Age: Typically 65+ (younger if facing a significant health change)

• Policy types: Universal Life, Indexed Universal Life, Survivorship, Whole Life, Variable Life, and Term policies

Why Work With LifeRoc

Choosing the right provider is key. Families and financial professionals trust LifeRoc because:

• Our large, leading network of funders can deliver strong offers

• There are no third-party broker commissions — 100% of the gross offer goes directly to you

• Our team has settled over $20 billion in life policies in our careers, across countless scenarios, including business, retirement, and healthcare-related cases

• We provide fast evaluations and streamlined closings, making the process easy for clients and advisors

• LifeRoc is known for exceptional service, so families can focus on what matters most

Take The First Step With LifeRoc

If you’ve ever wondered, “Can I sell my life insurance and receive cash now?” the answer may be yes. A life settlement can unlock cash for retirement, medical care, or family needs when the policy no longer fits your plans.

Request a free, no-obligation policy appraisal today to see if your policy may qualify and what it could be worth.

Contact us today to learn more about your options. Fill out the form below or give us a call at (833)678-7355 — our team is here to help you every step of the way.

Have more questions? Visit our Frequently Asked Questions Page