What Happens After You Sell Your Life Insurance Policy?

Understanding what happens after you sell your Life Insurance policy for a lump sum of cash - a transaction known as a Life Settlement - will benefit you greatly. Know what to expect in terms of:

Your proceeds

Tax implications

The policy itself

The Life Settlement Process

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Before delving into what happens after your sell your insurance, here's a very basic summary of the process. As your Life Settlement broker IMS Settlements does the following:

Evaluates the Worth of The Policy

Identifies potential Buyers or Investors and Negotiates the Best Price

Finalize the Transaction and complies with Regulations

What the Seller does After the Sale

In addition to receiving a lump sum of cash, the original policy owner stops paying premiums.

The seller's key responsibility after the sale is to determine whether any of the proceeds are taxable.

While here is no "Life Settlement tax" per se, a portion of the amount may be taxable as a long term capital gain, depending on how much was paid in premiums, among other factors.

How IMS Settlements Can Help

IMS Settlements can help navigate both the pre and post sale considerations of the Life Settlement process. We have extensive experience in the Life Settlement market place and our client friendly approach ensure we can assist with any financial concerns once your policy is sold. Learn More.

  • Life Settlement Education
  • Over 50 years of Combined Experience
  • Licensed in States across the country
  • IMS Satisfaction Guarantee

"IMS worked hard to help educate us about the process and the suitability of a life settlement. Once we got the process started he was transparent and professional."

- Maggie M.

IMS Satisfaction Guarantee

life settlement advisors
We hold ourselves to the highest standards of Service and Professionalism so if you don't like our work or our offers - let us know in writing and we will turn over your file.