A life insurance policy can be more than protection. In some circumstances, it can also be an asset with value you can access during your lifetime.

Your life insurance policy may have value today

Most people think of life insurance primarily in terms of the benefit it provides to their beneficiaries. But as circumstances and priorities change, a policy that once made sense may no longer fit your plans.

A life settlement provides another option.

A life settlement is the sale of an existing life insurance policy to a third party. In exchange, the policyholder receives a cash payment. The buyer becomes the new owner of the policy, takes responsibility for future premium payments, and receives the policy benefit when the insured passes away.

For some policyholders, this can provide an opportunity to access value from an asset they have built over many years.

Why do people consider a life settlement?

Life changes, and financial priorities can change with it.

Some people explore a life settlement because their policy is no longer needed. Others may find that premium payments no longer fit comfortably into their plans or simply want to understand whether their policy could provide value they can use today.

The funds received from a life settlement can then be used according to the policyholder’s priorities, whether that means supporting retirement, addressing expenses, helping family members, or simply creating greater financial flexibility.

The important first step is understanding what options may be available.

How does the process work?

While every policy and situation is different, exploring a life settlement can begin with just a few pieces of information.

Basic information about your age, health, and policy helps determine whether it may be eligible for a life settlement.

If your policy may qualify, the next step is a conversation. An advisor can explain the process, answer your questions, and help you understand the options available to you.

From there, you can decide what makes sense for your situation.