A life settlement sells an unused policy for cash — before it lapses.

What a life settlement is

The owner sells an existing life insurance policy to a licensed provider (or through a licensed broker) for a lump sum. The buyer takes over premiums and receives the death benefit later. You walk away with cash that can pay assisted living, home care, or the gap while another plan closes.

When families look at this

• The insured is older, often with a care need, and the policy is still in force.
• Premiums are hard to keep paying. Lapse is a real risk — and a lapsed policy is usually worth nothing.
• Adult children are the beneficiaries and would rather have help with care now than a later check.
• Face amount is typically $50,000 or more. Smaller policies often do not attract a bid. That floor is a market habit, not a law, but it is the honest starting line.

If the policy is close to lapsing, say so on the form. Timing matters more than polish. A settlement takes underwriting; it is not next-day money.

What it is not

• Not a loan, and not a reverse mortgage. You are selling an asset.
• Not a surrender to the carrier. A settlement bid is often higher than cash surrender value — not always.
• Not tax advice. Part of the proceeds can be taxable. Ask a CPA before you accept an offer.
• Not something Fund My Senior Care buys. Licensed life-settlement providers make offers. We help you see if the policy is even in range and, if you ask, we introduce a licensed partner.

What we need to look at it

Age of the insured, a rough face amount, policy type, and whether premiums are current. An illustration or recent statement helps; do not mail the original policy.

Life settlements are regulated. Only licensed providers or brokers can buy or shop a policy. Past offers do not predict yours. We do not guarantee a bid.