Traditional Life
Settlement
Sell your entire life insurance policy for a cash lump sum — above the surrender value, below the death benefit — with no further premium obligations. The most straightforward way to unlock the value of an unneeded policy.
What Is a Traditional Life Settlement?
A traditional life settlement is the sale of an existing life insurance policy to a third-party buyer (a licensed provider like Abacus Life) for a cash payment greater than the policy's surrender value, but less than its full death benefit.
Once the transaction is complete, the buyer assumes ownership of the policy and takes over 100% of all future premium payments. The original policyholder receives their cash payment and has no further obligations or claims on the policy.
This is the most common type of life settlement and is typically the first option that comes to mind. It provides immediate liquidity with no strings attached — there are no restrictions on how you use the proceeds.
Who is it best for?
The traditional life settlement is ideal for policyholders who:
- No longer need life insurance coverage
- Are burdened by ongoing premium payments
- Need immediate cash for medical expenses, retirement, or other goals
- Have outlived the original purpose of the policy (e.g., dependent children are grown)
- Are considering lapsing or surrendering a policy for its cash value
Key Facts
How a Traditional Settlement Works
From your first inquiry to cash in hand, the Abacus process is straightforward and typically takes 60–90 days.
Submit Your Policy Information
Use our free online calculator or call us. We'll collect basic details about your policy, health, and financial goals.
Receive Your Offer
Abacus delivers a no-obligation offer within 24–48 hours of receiving your information. There is never any pressure to accept.
Review & Accept
Review your offer with your financial advisor or family. If you accept, we handle all paperwork and work directly with your insurer.
Receive Your Cash
Once the policy transfer is complete, your lump-sum payment is deposited. Use the funds however you choose — no restrictions.
Traditional Settlement in Action
Robert called us with a binder full of research on his policy options. He had his questions prepared and very clear goals on what he wanted to accomplish financially with his policy. Before we even started speaking about Abacus potentially purchasing his policy we went over everything from surrendering his policy to alternative funding options.
"I was deeply in debt and my life insurance payments were becoming a financial burden. I read about viatical settlements and did my research. I checked with numerous companies about a multitude of different ways of selling my life insurance plan. Abacus Life was by far the best deal for me. Not only were they able to come in several weeks after the process started with other companies and still generate an offer faster than anyone else, they even advanced a part of my settlement."
Robert and his wife took a dream national park trip with their advance and were able to purchase a cabin and catch up on all of their debts and medical bills with their funds.
Abacus offered Robert $275,000 in cash.
Why Surrender Value Isn't Enough
The cash surrender value offered by your insurance company is almost always a fraction of what a life settlement can provide. Life settlements are priced based on actuarial factors — including your age, health, and remaining life expectancy — not just the policy's internal accounting value.
On average, policyholders who work with Abacus receive 6–8× more than the surrender value they would have received from their insurer.
Robert, Age 82
"Abacus Life was by far the best deal for me. Not only were they able to come in several weeks after the process started with other companies and still generate an offer faster than anyone else, they even advanced a part of my settlement."
Robert and his wife took a dream national park trip with their advance and were able to purchase a cabin and catch up on all of their debts and medical bills with their funds.
Everything You Get with a Traditional Settlement
A traditional life settlement with Abacus is a clean, complete transaction. Here is exactly what to expect:
- Immediate cash lump sum — typically 10–80% of the policy's face value, paid at closing.
- All future premiums paid by the buyer — zero ongoing financial obligation for you.
- No restrictions on how you use the proceeds — spend it however it benefits you most.
- Advance payment available — in qualifying cases, you may receive a portion of your offer before closing.
- No obligation to accept — receive your offer and take as much time as you need to decide.
- HIPAA-certified privacy — your health and financial information is always protected.
- Licensed in 49 states — Abacus Life is fully licensed and regulated in all states except Alaska.
Abacus by the Numbers
As a publicly traded direct buyer (NYSE: ABX), Abacus Life is one of the most trusted names in life settlements.
Unsure Which Settlement Type Is Right for You?
Compare all three options side by side — Traditional, Retained Death Benefit, and Hybrid.
Compare All OptionsTraditional vs. Other Settlement Options
The traditional settlement isn't right for everyone. Here's a quick comparison to help you choose.
Traditional
Sell your full policy for maximum cash now. No death benefit is preserved. Best when you need liquidity and no longer need to provide for beneficiaries.
Retained Death Benefit
No cash payment, but your beneficiaries retain a guaranteed percentage of the death benefit. Premium payments are eliminated immediately.
Hybrid
A combination — receive a partial cash payment now, and your beneficiaries retain a guaranteed portion of the death benefit.
