How Much Is My Life Insurance Policy Worth? A Complete Guide

Wondering what your policy could sell for? You’re not alone. A policy’s value isn’t random—it’s based on a few clear drivers like age, health changes, premiums, coverage amount, and contract features. This guide explains how buyers think, what typically increases (or decreases) value, and the easiest way to get a fast estimate.

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In this guide
90%of policies never pay a death benefit
$100B+in value is forfeited by seniors yearly
<1%ever hear they can sell a policy

How Life Settlement Value Is Determined (Plain English)

Buyers compare two things: the future cost to keep the policy in force versus the benefit it will eventually pay. If the ongoing premiums and timeline make economic sense, they’ll make a cash offer now. Your age, health history, coverage amount, and policy structure all influence that math.

New to the concept? Start with What Are Life Settlements?

The 6 Biggest Value Drivers

  • Age & health changes since issue: Later-life coverage or meaningful health changes can increase buyer interest.
  • Coverage amount (face value): Policies of $100,000+ are most commonly considered.
  • Premium requirements: Lower, predictable, or adjustable premiums are easier to price.
  • Policy type & features: Universal Life and Whole Life are common; some term policies can qualify depending on contract and cost pattern.
  • Carrier & contract clarity: Reputable carriers and clear provisions help speed up underwriting and offers.
  • Market demand & competition: Shopping your case to multiple buyers creates price discovery and can improve outcomes.

For eligibility basics, see Who Qualifies.

Illustrative Examples (Realistic Numbers)

These are simplified, illustrative scenarios. Every case is unique.

Scenario Policy & Situation Typical Outcome
Maria, 74 $250,000 Universal Life; premiums rising, modest surrender value Settlement offer often several times surrender value
James, 70 $150,000 policy that initially looked like “no value” until we reviewed contract details Positioned for buyer interest; resulted in a lump-sum payment instead of $0
Robert, 71 $300,000 UL; no longer needs coverage after life changes; wants to reduce expenses Competing bids; accepted a settlement that was well above surrender

Curious which bucket you might fit? Run a quick estimate with the Life Settlement Calculator.

Ways to Strengthen Your Case (Without Overthinking It)

  • Have recent policy details handy: Statements or illustrations help us review premiums and structure quickly.
  • Know your goals: If you’re weighing surrender or lapse, say so—comparison math helps decision-making.
  • Let us shop the case: Multiple buyers competing can improve offers and speed up timelines.

For a side-by-side of options, read Life Settlement vs. Surrender — Which Pays More?

Who Typically Qualifies

  • Age: Generally 65+ (younger may qualify with significant health changes)
  • Coverage: $100,000+ in face amount
  • Policy Types: Universal Life, Whole Life; some term policies may qualify depending on contract and cost pattern
  • Situation: Rising premiums, changed needs, or considering surrender/lapse

Details here: Who Qualifies.

What the Process Looks Like

  1. Policy review: We pull policy details to estimate value — see How It Works.
  2. Shopping your case: We invite competing offers from qualified buyers.
  3. Offer review: You compare options with our guidance—no pressure, no obligation.
  4. Secure closing: On acceptance, funds are disbursed safely and future premiums stop.
“Your policy’s value isn’t a mystery. A short review and competing bids can reveal what it’s truly worth—before you surrender or let it lapse.”

See What Your Policy Could Be Worth

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Prefer to talk? Visit our FAQ or Contact Us. Explore more on the Lifestone Settlements Blog.

Next Read

What Are Life Settlements? A Simple Guide

Can’t Keep Up with Life Insurance Premiums?

Life Settlement vs. Surrender — Which Pays More?

These articles help you compare options and understand what drives value—so you can decide with facts.

Quick FAQ

Is settlement value always higher than surrender?
Not always—many cases are, but it depends on age, health changes, premiums, face amount, and buyer demand. Compare both before deciding.

Can term policies qualify?
Sometimes. It depends on contract features and how costs change over time. A quick review can clarify potential paths.

How long does it take?
Many cases close in weeks, depending on carrier responsiveness and your timeline. See How It Works.

Are proceeds taxable?
Portions may be taxable depending on basis and gain. Please consult a qualified tax advisor and see our FAQ.

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