Life Settlement Calculator: Estimate Your Policy’s Payout

Retirement planning is full of surprises, some good and some not so good. One surprise many seniors don’t expect? That a life insurance policy they no longer need might be worth real money. If you’re considering selling your life insurance policy, our life settlement calculator provides a quick, free, and private way to estimate your policy’s worth if you decide to sell.

In just a few simple steps, you’ll receive an instant estimate based on your age, health, policy type, and face value. There’s no obligation, no pressure, and your information remains secure. Whether you’re wondering if it’s time to stop paying premiums or if you can get value from a policy you no longer need, this is your starting point.

How Our Life Settlement Calculator Works

Our calculator asks for a few key details:

• Your age and general health status (we use a self-assessment scale from Above average to Terminal)
• Additional health and lifestyle questions
• The type of life insurance policy you have (term, whole, or universal) and the insurance carrier (company who wrote the policy)
• The face value of the policy and what you pay in premiums

Behind the scenes, the calculator runs a valuation similar to what professional brokers and buyers use. It factors in:

• Mortality tables
• Ongoing costs
• Market demand

You’ll get an estimated range showing what your life insurance policy might be worth on the secondary market, usually much more than the cash surrender value from the insurer (learn What the Cash Surrender Value is in our guide).

What Factors Affect Your Life Settlement Estimate?

Age and Health Condition

Most life settlement offers go to individuals age 65 or older, but younger people with serious health issues may also qualify. Health status is a key driver; the more impaired your health, the more likely a buyer will offer a higher payout.

Policy Type and Face Value

Permanent policies (whole or universal) typically receive higher offers. Term policies may also qualify if they are convertible to permanent insurance. Generally, policies must have a face value of at least $100,000.

Premium Costs

Low ongoing premiums make your policy more attractive to buyers since they will take over the payments. High premium costs may lower your estimate.

Life Expectancy

This is often the biggest factor. Shorter life expectancy increases your policy’s value to buyers, who are investing in the death benefit payout.

How Much Is My Policy Worth in a Life Settlement?

Most qualifying policies sell for 10% to 30% of the death benefit. That means a $250,000 policy might yield $25,000–$75,000 in a life settlement, significantly more than a typical surrender payout.

Final amounts vary depending on your health, policy terms, and the marketplace. But starting with a calculator estimate gives you valuable insight. Many people are surprised by how much their policy is worth.

Do You Qualify to Sell Your Life Insurance Policy?

You may qualify if:

• You’re age 65 or older (or younger with serious health changes)
• Your policy is worth $100,000 or more
• You own a whole, universal, or convertible term policy
• Your premiums are current, and the policy has been active for at least two years

Not sure? The best way to find out is to use the calculator and speak with a licensed specialist who can confirm your eligibility.

What Happens After You Get Your Estimate?

If you decide to explore a life settlement, here’s what to expect:

1. Initial Call: A licensed professional will walk you through your estimate and answer any questions.
2. Documentation: You’ll gather your policy details, premium info, and give authorization to access medical records.
3. Medical Review: We coordinate a review of your medical history to assess life expectancy.
4. Policy Verification: We confirm your policy terms directly with your insurance provider.
5. Offer Process: Your policy is presented to multiple buyers to secure competitive offers.
6. Review Offers: You choose whether to accept, negotiate, or walk away.
7. Closing: If you move forward, documents are signed, and ownership is transferred.
8. Payment: Once finalized, your funds are sent via wire or check.

What to Consider Before Selling Your Policy

Selling your life insurance policy can be a smart move, but it’s important to weigh the pros and cons.

Financial Considerations

• Proceeds may be taxable
• Could affect Medicaid eligibility or other income-based benefits
• May be subject to claims from creditors

Ownership Changes

• You no longer pay premiums
• Your beneficiaries will not receive the death benefit

Professional Guidance

Consult with a financial advisor (or tax professional) to understand the full impact on your retirement plan, benefits, estate, and tax implications.

Why Seniors Choose Lighthouse Life

Lighthouse Life makes the life settlement process simple, transparent, and fast. Our team works exclusively with seniors looking to:

• Reduce premium burdens
• Pay for healthcare or long-term care
• Boost retirement income

What sets us apart:

• Licensed, experienced team
• No pressure, consumer-first approach
• Average payouts are 3–5 times higher than the surrender value
• Closings are often completed in 45 days

We prioritize your privacy, security, and satisfaction every step of the way.

Estimate Your Policy’s Value Now

Ready to see what your life insurance policy might be worth?

Use our free, no-obligation calculator today and get your personalized estimate in just minutes. It could be the first step toward unlocking financial flexibility and peace of mind.