How Much Can You Sell a Life Insurance Policy For?

It depends on age, health, and the policy — but it's almost always more than the surrender value.

On the licensed secondary market, a life settlement commonly pays 20–40% of the policy's death benefit, and a viatical settlement (when the insured is terminally ill) often pays 50–80%, usually income-tax-free. A $250,000 policy might bring anywhere from $50,000 to $200,000 depending on the insured's age and health — compared to a surrender value that's often a small fraction of that.

What drives the offer

Three things move the number most: health (a shorter life expectancy raises the offer), age (buyers focus on 65+), and policy size and type ($100k+ universal life is most desirable). Premium cost matters too — cheaper-to-maintain policies are worth more to a buyer.

Sell vs. surrender vs. lapse

Surrendering returns only the accumulated cash value — often pennies on the dollar of the death benefit. Letting the policy lapse returns nothing. Selling is usually the highest-value option for an eligible policy, which is exactly why it's worth checking before you cancel anything.

How to get the most

Use a licensed broker who shops your policy to multiple buyers so they compete — a single direct offer rarely wins. There's no upfront cost to you; the broker is paid from the sale.

Estimate your policy's value

Free calculator — compare selling vs. surrender vs. lapse.

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Common questions

Can I estimate the value myself?

Yes — our free calculator gives a range based on age, health, and policy size. Actual offers come from licensed buyers after reviewing the policy and medical records.

Do small policies sell?

Usually not below $100,000 — transaction costs eat the value and most buyers won't bid.