Understanding how the secondary market works
can create better outcomes for senior clients.
Unlock More Value from Existing Life Insurance
A life settlement allows eligible policyholders to sell an unwanted life insurance policy for more than its cash surrender value.
As clients age, their financial priorities change. Many seniors continue paying for life insurance they no longer need or can no longer afford. Before a policy is lapsed or surrendered, it may be worth reviewing whether a life settlement could provide a better outcome.
When Policies No Longer Fit
It’s common for clients to hold policies that made sense years ago, but no longer align with their current situation. In many cases, the policy is simply surrendered for minimal value, or lapsed entirely, without exploring other options.
Common reasons policies are surrendered or lapsed:
- Premiums have become too expensive
- Estate planning needs have changed
- The original business or family purpose is no longer relevant
- The client would rather have liquidity than ongoing coverage
How a Life Settlement Works
A life settlement provides an alternative to lapse or surrender. If a policy qualifies, the policyholder may be able to sell it for a lump-sum payment. This gives the client immediate financial flexibility and can turn an unwanted policy into a meaningful asset.
Step 1
Submit policy details
for review
Step 2
Abacus evaluates the policy and determines fair market value
Step 3
If an offer is made and accepted, the client receives a lump-sum payout
Same Policy. Different Outcome.
Many policies are worth significantly more than their cash surrender value, especially universal life policies with high premiums. In one example, a client’s policy had an $82,000 surrender value. After review, the life settlement offer was $615,000.
Before a client surrenders or lapses a policy, it may be worth reviewing the secondary market value.
A Transparent, Advisor-Friendly Process
Abacus Life is one of the most experienced providers in the life settlement market. We work directly with advisors and agents to help review policies and identify opportunities that may deliver stronger client outcomes.
Our process is designed to be:
- Fast – Fair market valuation typically in 24–48 hours
- Transparent – Clear communication throughout the review process
- Advisor-friendly – No middlemen and streamlined contracting
Have a Policy in Mind?
If you’re working with a senior client who may be considering surrendering or lapsing a policy, we can help you quickly evaluate whether a life settlement may be a fit.
