How Much Will You Get for Selling Life Your Insurance Policy?

Since each case is specific, and there is not one unified answer. We treat each case personally and with the utmost sensitivity and confidentiality. The amount of cash you may be offered for your policy can vary considerably based on the details of your case. For an instant estimate of your policy’s cash value, fill out the Policy Cash Israel Life Settlement Calculator.

Here is how each qualifying factor can impact the value placed on your policy:

What Types of Life Insurance Policies Qualify to Be Sold?

Life Expectancy

Life expectancy is the approximate number of years someone can anticipate to live based on the present age, health conditions, and lifestyle.

A professional underwriting team uses the insured’s health information, current age, and information to calculate their life expectancy.

Age Of The Insured

An older insured can expect to receive a higher payout than a younger individual in similar health with a similar policy.

That is primarily due to life expectancy and the estimated future premium costs to the buyers.

Health Of The Insured

Both the insured's current and past health play roles in determining policy value. Life expectancy calculations rely heavily on the insured's present health condition, whereas the policy's initial cost can be affected by their health at the time of purchase

Premium Schedule

Your premium schedule was established when you initially acquired the life insurance policy and is part of your contract. It summarizes the premium requirements for the duration of the policy and any rate escalations that will occur throughout the insured’s lifetime.

More significant premium expenses reduce the amount the provider can provide to pay for your life insurance policy.

Premium Payments

By analyzing the premium schedule and life expectancy, a buyer can estimate the total premium payments the buyer would need to pay to keep the policy active throughout the insured's life. The longer the buyer expects to pay premiums, the smaller the life settlement payment will be.

Policy Type

Though nearly any type of life insurance can qualify for a life settlement, the kind of policy can affect not only eligibility, but the size of the payout as well.

Selling a universal or whole life insurance policy

With permanent policies that can create cash value, the volume of the cash reserve can be a deciding factor in whether the policy can be eligible, and how much you might get when selling it.

A life settlement offers more money than the cash surrender value, but less than the total death benefit.

Selling a term life insurance policy

With selling term life insurance policies, the policy will frequently need to be convertible, except in the case of a terminal illness.

If the insured has a chronic/terminal illness, a non-convertible term policy may qualify.

Other policy types, such as keyman or group policies, will require to be assessed on a case-by-case basis.

Policy Size

The greater the policy, the higher the payout—this is because the payout can be seen as a percentage of the total face value of the policy.

For instance, the payout for a $1,000,000 / ₪ 3,500,00 life insurance policy will be larger than the payout of a $100,000 / ₪ 350,000 policy, if all factors are identical and both settlements were estimated at 30% of face value.

With this situation, that is the distinction in $300,000 / ₪ 1,100,00 or $30,000 / ₪ 110,000

Almost all types of policy types qualify to be sold through a life settlement.

While there are insurance policy types that are easier to qualify than others, such as universal life or other permanent policies, all policies will be considered.

For example, whole and term life insurance policies require more qualifications to be sold, as opposed to other policy types, however they are still eligible to qualify.

We will take the time to walk you through the entire process from start to finish, making sure you see all of numbers and information, from policy valuations and underwriting, to cost and returns. We want to make sure that you are well-informed and fully understand your options, so that you can make the right decision for you and your family’s future.