The life insurance settlement market has grown significantly over the past decade, offering seniors and policyholders new financial opportunities. Instead of surrendering or lapsing a life insurance policy, many are now choosing to sell it for a lump sum through a life settlement. At Summit Life Insurance, we help individuals in Fort Lauderdale, FL, explore the value of their life insurance in a competitive secondary market. This guide explains how the market works and why it matters to you.
What Is the Life Insurance Settlement Market?
The life insurance settlement market is a financial marketplace where individuals can sell their existing life insurance policies to institutional or private investors. These buyers pay more than the policy’s surrender value but less than its death benefit. Once sold, the buyer becomes the new policy owner and is responsible for future premiums.
At Summit Life Insurance, we connect policyholders with licensed settlement providers and brokers to ensure they receive top market value.
Who Participates in This Market?
There are three main groups in the life insurance settlement market:
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Policyholders – typically seniors over 65 with a life insurance policy they no longer need or want.
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Investors/Buyers – institutions, hedge funds, or individuals purchasing the policy for investment purposes.
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Brokers and Providers – licensed intermediaries like Summit Life Insurance who help negotiate, structure, and manage the transaction.
The growing interest from institutional investors has increased competition, often leading to higher settlement offers for policyholders in Fort Lauderdale and across the U.S.
Why Is the Life Insurance Settlement Market Growing?
Several key factors have fueled the market’s expansion:
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Aging Population: More seniors are reevaluating their life insurance needs in retirement.
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Policy Lapses: Millions of policies lapse each year due to unpaid premiums or lost interest—life settlements offer a better alternative.
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Investor Demand: Investors view life insurance as a stable, non-correlated asset with predictable returns.
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Increased Awareness: Companies like Summit Life Insurance are educating consumers on their options.
In Fort Lauderdale, more policyholders are choosing life settlements as a financial planning tool—especially when premiums become unaffordable.
How Is Policy Value Determined?
The value of a life insurance policy in the settlement market depends on several factors:
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Age and Health of the Insured
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Policy Type (e.g., universal, whole, convertible term)
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Face Value and Premium Costs
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Life Expectancy Estimates
Summit Life Insurance provides free evaluations to help you understand what your policy may be worth in today’s market.
Regulation and Transparency in the Market
The life insurance settlement market is highly regulated, especially in states like Florida. To protect consumers, laws require:
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Full disclosure of offers and fees
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Licensing of brokers and providers
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Privacy protections
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Mandatory cooling-off periods
Summit Life Insurance, as a licensed broker in Fort Lauderdale, ensures every transaction follows Florida state laws and provides full transparency throughout the process.
Benefits of Selling a Policy on the Life Insurance Settlement Market
If you qualify, selling your policy on the life insurance settlement market offers several advantages:
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Cash Payment greater than the policy’s surrender value
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Relief from ongoing premium payments
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Funds for medical care, retirement, or debt repayment
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An exit strategy for an unneeded or unaffordable policy
Many clients of Summit Life Insurance have used settlement proceeds to cover long-term care, pay off mortgages, or simply improve their quality of life.
Is the Life Insurance Settlement Market Right for You?
If you’re over 65 and own a life insurance policy you no longer need, you may be eligible to participate in the life insurance settlement market. It’s especially worth exploring if:
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You’re struggling with premium payments
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Your beneficiaries no longer rely on the policy
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The policy is about to lapse
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You’d prefer a lump sum over a future payout
Let Summit Life Insurance in Fort Lauderdale guide you through your options with a no-obligation policy review.
FAQs About the Life Insurance Settlement Market
Q1: Is selling my life insurance policy legal?
Yes. Selling your life insurance policy is legal and regulated in most U.S. states, including Florida.
Q2: Will I receive more than the cash surrender value?
Most policyholders receive significantly more than the surrender value but less than the death benefit.
Q3: Do I need to be sick to qualify for a life settlement?
Not necessarily. While serious health conditions may increase your policy’s value, many healthy seniors still qualify.
Q4: What fees are involved?
There may be broker or provider fees, but Summit Life Insurance ensures all costs are disclosed up front.
Q5: How long does the process take?
Most life settlement transactions take 4 to 8 weeks to complete, depending on policy details and underwriting.
