Skip to main content

$1* Buys $100,000

Globe Life Insurance

Get My FREE Quote — Apply In Minutes
Get information on life insurance for Adults, Children, or both
Get FREE Life Insurance Information
Select Your Product:
Term Life For Adults
Whole Life For Children
Adults + Children
Check Adult
Age Group(s):
Or call: 1-800-742-6787
Choose Your Coverage:
  • $5,000
  • $10,000
  • $20,000
  • $30,000
  • $50,000
  • $100,000
$5,000, $10,000, $20,000, $30,000, $50,000, $100,000
No Medical Exam —
Simple Application
No Medical Exam—Simple Application
Free Quote—Apply Online
No Waiting Period Full Coverage The First Day
Fast Approval Process
Full Coverage The First Day—Fast Approval Process
Monthly Rates As Low As: $3.49 for Adults
$2.17 for Children or Grandchildren

Can I Sell My Whole Life Insurance Policy?

Globe Life family protected by umbrella
close

$1* Buys $100,000

Globe Life Insurance for Adults or Children

Get More Information
No Medical Exam
Simple Application
No Medical Exam—Simple Application
Free Quote—Apply in Minutes
No Waiting Period Full Coverage The First Day
Fast Approval Process
Full Coverage The First Day—Fast Approval Process
Monthly Rates As Low As: $3.49 for Adults
$2.17 for Children or Grandchildren

Can I Sell My Whole Life Insurance Policy?

If you own a whole life insurance policy, as you know, there were many good reasons for you to purchase such a policy. When people make the decision to purchase a whole life insurance policy, they are often in the process of experiencing a major life-altering event, such as getting married, starting a family, or purchasing a home. Owning whole life insurance is very important to ensure our sense of security.

Can I Sell My Whole Life Insurance Policy? | Globe Life

Maybe your circumstances have changed since you purchased the whole life policy and you’re considering selling it. According to Investopedia.com, this is referred to as a life settlement, which is defined as “the selling of one’s life insurance policy to a third party for a one time cash payment. The purchaser then becomes the beneficiary of the policy and begins paying the premiums.” (This is similar to a viatical settlement.) The purchaser is typically an experienced institutional investor and the face amounts of policies will be $250,000 or more.1 (For more information on the difference between life settlements and viatical settlements, you can visit Investopedia.com.)

You may be considering selling your whole life insurance policy because you can’t afford the premiums or because you no longer have people who financially depend on you. Selling the policy removes your coverage as well as any death benefit your beneficiaries would have received, but you may decide the cash payout is worth it (that is, if you are able to sell your policy).2

Shopping around to multiple brokers until you find the best deal may be the best strategy. You should be aware that the lower life expectancy you have, “the more you can sell your policy for,” because buyers are hoping to collect on the death benefit of the policy sooner, rather than later. You may not even be able to find a buyer unless you’re very old or terminally ill. And while the viatical settlement may be higher than the cash value of your whole life policy, it will not be higher than the death benefit.3

So if you’re considering selling your whole life policy, you should consider if you’d rather have a higher payout to your beneficiaries after your death or a lower life/viatical settlement for yourself.

It’s important to think about all the financial outcomes of selling your whole life insurance policy and whether or not it makes sense for you and your family. According to nerdwallet.com, “some of the money from a life settlement may be taxed as income or capital gains” and it may come with other financial obligations, as well.4

If you have any questions about selling a whole life insurance policy, please contact a financial advisor.

1. “Life Settlement,” Investopedia, https://www.investopedia.com/terms/l/life_settlement.asp

2. “Considerations when selling a life insurance policy,” NerdWallet, https://www.nerdwallet.com/blog/insurance/considerations-when-selling-life-insurance-policy/

3. “Life Settlement,” Investopedia, https://www.investopedia.com/terms/l/life_settlement.asp

4. “Considerations when selling a life insurance policy,” NerdWallet, https://www.nerdwallet.com/blog/insurance/considerations-when-selling-life-insurance-policy/

You might also be interested in...

Globe Life's values have remained the same since our roots began in 1900.

A rating
Globe Life is rated A (Excellent)** by A.M. Best Company based on their latest analysis of Globe Life's financial strength, management skills and integrity. (rating as of 8/23)