Partnered with The Settlement Group, Inc., a licensed life settlement provider

Life Settlement Calculator

Life Settlement Calculator

Find out what your life insurance policy could be worth if you sold it instead of letting it lapse or surrendering it. Answer a few questions about the insured and the policy to see an estimated value. It’s free and there’s no obligation.

Values vary widely. Some policies have little or no market value, while policies insuring people with serious health conditions can sell for a large share of the death benefit.

Step 1 of 3

Who is insured?

Number of lives on the policy

A survivorship policy covers two people and pays after the second death. If one of the two insureds has already died, choose One person and enter the surviving insured.

Age is a key part of estimating life expectancy, which drives what a buyer can pay.

Sex at birth

Women live longer on average, so sex affects the life expectancy estimate.

Uses tobacco (cigarettes, cigars, vaping, or chewing tobacco in the last 2 years)
Insured's health

Health usually matters more than any other factor. These four categories are broad on purpose. A full review uses medical records for a precise picture.

About the policy

Some policy types, like universal life, let premiums be adjusted, which can keep a buyer’s costs down and raise the value. Your annual statement or policy cover page will name the type.

Buyers rely on the insurer to pay the claim years from now, so its financial strength matters.

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Use the base death benefit. Leave out accidental death benefits and other riders.

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A buyer takes over these payments, so lower premiums mean a higher value. Check your latest annual statement if you’re not sure.

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What the insurer would pay if you canceled today, after surrender charges. It’s often lower than the cash value on your statement.

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A loan doesn’t prevent a sale, but the balance comes out of the death benefit a buyer would receive.

Were the premiums paid with a premium financing loan?

Financed policies can still be sold, but the financing loan has to be paid off as part of the sale.

See your estimate

Enter your contact information to see your estimated value. A specialist may follow up to answer questions. There is no cost and no obligation.

Licensing, required disclosures, and protections for terminally ill policy owners vary by state.

By clicking “See my estimate,” you agree to be contacted by phone, text, or email about your policy. You can opt out at any time. Your information is kept confidential. See our Privacy Policy.

How this life settlement calculator works

A buyer pays you now, takes over the premiums, and receives the death benefit later. What they can pay today depends on how long they expect to keep paying premiums and how long they expect to wait. This calculator models that the same general way the market does, using broad categories in place of medical records.

1

Life expectancy

Age, sex, health, and tobacco use set an estimated life expectancy. A shorter life expectancy means fewer premium payments and a sooner payout, so the policy is worth more.

2

Cost to keep the policy

The calculator projects the premiums a buyer would pay each year. High premiums compared to the death benefit lower the value, sometimes to zero.

3

Investor return

Future dollars are discounted to today using a range of returns that buyers typically require. That's why you see a range rather than one number.

Actual offers depend on a professional life expectancy report based on medical records, the policy's exact terms and premium schedule, the insurance carrier, and market conditions. A free policy review is the only way to learn what a buyer would actually pay.

What happens after you see your estimate

Before you surrender your policy or let it lapse, get it reviewed. Once a policy is canceled, any value it had on the secondary market is gone for good.

If your estimate shows value, a specialist can arrange a free policy review by a licensed life settlement provider.

  • No cost and no obligation
  • You are never required to accept an offer
  • Your estimate is a starting point, not a final offer
  • Your information is kept confidential

The review process

  1. A specialist confirms your policy and health details.
  2. With your permission, medical records and policy illustrations are gathered.
  3. If your policy qualifies and there is buyer interest, you may receive an offer.
  4. You decide whether to accept, with no obligation to sell.

Disclosures

Life Settlement Calculator refers qualified individuals to The Settlement Group, Inc., a licensed life settlement provider. The Settlement Group, Inc. (SGI) is a licensed life settlement provider in business for over 20 years. View SGI's state licenses.

Not advice

Nothing on this website or in our communications is tax, legal, insurance, or financial advice. Talk with your own attorney, tax professional, or financial advisor before deciding to sell a life insurance policy.

Estimates are not offers

Calculator results are estimates based only on the information you enter. They are not an offer to buy your policy and are not a guarantee of what a buyer will pay. Any actual offer depends on the policy, the insured person, and market conditions. A policy review is free and carries no obligation, and you are never required to accept an offer.

Things to consider before selling

  • Your beneficiaries will no longer receive the death benefit.
  • Proceeds from a sale may be taxable.
  • A sale may affect eligibility for needs-based benefits such as Medicaid.
  • Buying new life insurance later may cost more or may not be possible.
  • A sale may affect protection of the policy from creditors.

State rules

Life settlement licensing, required disclosures, waiting periods, and cancellation rights vary by state.