A life settlement is a financial transaction where the owner of a life insurance policy transfers the ownership and beneficiary to an institutional investment fund. In exchange for transferring the policy, the insured receives a cash settlement that can often be 7-8 times greater than the cash surrender value. This is not a loan and the proceeds can be spent at their discretion. In some cases, the seller can actually retain a portion of the policy for their estate. Deciding to sell it for fair market value is a legitimate and viable choice to create more options for your future.