When to Consider
Selling Your Policy
Determining if a life settlement is the right choice should be carefully discussed with family and financial advisors. Here are the three primary motivating factors that lead policyholders to consider selling.
Unlock the Cash Value of Your Life Insurance
In 1911, the United States government ruled that life insurance policies are personal property. This outcome opened up the possibility for policies to be bought, sold, and traded — just like any other high-value asset.
In times of financial hardship or changing life circumstances, a person can now choose to liquidate their policy and turn it into cash. This lump sum could then be used to:
- Pay for assisted living or long-term care
- Fund cancer treatment or critical care
- Pay outstanding medical bills
- Pay premiums on another existing life insurance policy
Life insurance policies are personal property — and they can be sold for more than their cash surrender value.— U.S. Supreme Court, Grigsby v. Russell, 1911
Common Motivating Factors
There are certain standards the policy and the insured must meet to qualify. Here are the most common situations that lead policyholders to explore a life settlement.
Funds for Medical Expenses
We will walk you through every number so you have the information you need to make an informed decision. Here are some common ways people use their payout to cover medical expenses:
- Cancer treatments or critical care
- Long-term care or assisted living
- Medical debt or out-of-pocket costs
- Insurance premium support
Financial Needs & Goals
A life settlement can provide significant liquidity for a variety of financial objectives. Some common uses of a life settlement payout include:
- Fund a business or business expansion
- Pay off tax liability or debt
- Purchase an investment
- Fund a lump sum income-generating annuity
Your Lifestyle Needs Have Changed
As the insured progresses through life, they may no longer need a life insurance policy. If they qualify, a life settlement could be a viable option. Here are some examples of lifestyle changes that could encourage the sale of a policy:
- Divorce
- Retirement
- There is no longer an estate tax burden
- The beneficiaries no longer need the proceeds
The Big Picture
There are a lot of different scenarios where this option can help someone turn their insurance policy into a living benefit. Take a look at our case studies to see how the choice to sell can be a profitable way to alleviate costly premiums on a no longer needed policy.
Abacus Life is dedicated to making sure you receive the most from your policy and that your entire experience is fast and seamless. We will work with you every step of the way to ensure you feel comfortable with the process.
See How Much Your Policy Could Be Worth
Our Life Settlement Calculator gives you a no-obligation estimate in as little as 24-48 hours. Abacus Life is a direct buyer — meaning no middlemen and more money for you.
Life Settlement CalculatorQuestions? Call us at 800-561-4148
Explore More Resources
Life Settlement Guide
Everything you need to know about how life settlements work, who qualifies, and what to expect.
Read the Guide →Success Stories
Read real case studies from policyholders who received life-changing payouts through Abacus.
View Case Studies →Timeline of Life Settlements
Explore how life settlements evolved from a 1911 Supreme Court ruling to a NYSE-traded industry.
View Timeline →