# Title: Life Settlement Advisors (LSA)

## Description
> Life Settlement Advisors helps seniors and fiduciary advisors unlock the hidden value in unwanted life insurance policies. Many people allow policies to lapse or accept a minimal surrender value, unaware that a life settlement can provide a significantly larger payout.

### Pitch
You can sell all or a portion of your life insurance or term insurance policy by providing information about the policy and the insured. Our team of experienced life settlement and viatical settlement experts are ready to answer your questions and help you explore your options.

### Audience
Seniors (70+) and their families; fiduciary & financial advisors.  

### Core values
Explain eligibility, expected value, steps, timelines, taxes, and regulatory considerations in plain English, with advisor-friendly resources.

## Website Links

### Primary
- [What is a Life Settlement?](https://www.lsa-llc.com/): An overview of selling an existing life insurance policy for a lump sum instead of lapsing/surrendering.
- [How to qualify](https://www.lsa-llc.com/do-i-qualify/): A free life settlement qualification calculator 
- [How selling a life insurance policy works](https://www.lsa-llc.com/selling-a-life-insurance-policy/): A breakdown of how selling a life insurance policy works.
- [Helping Clients Retire](https://www.lsa-llc.com/helping-clients-retire/): An explanation of life settlements and how you can benefit from selling a life insurance policy.
- [Applying for Life Settlements](https://www.lsa-llc.com/seniors/): Links to begin applying for a selling a life settlement.
- [FAQs](https://www.lsa-llc.com/faqs/): General FAQs page used as reference.
- [Free Policy Evaluation](https://www.lsa-llc.com/contact/): Start a no-obligation consultation.
- [Case Studies](https://www.lsa-llc.com/blog/): Browse additional information and case studies to answer specific questions.

### Company
- [About LSA](https://www.lsa-llc.com/about/): About Life Settlement Advisors
- [Sell Your Policy](https://www.lsa-llc.com/send-us-a-case/): Submit your life insurance policy for a free review to see if it qualifies for a life settlement and get a cash offer
- [Contact](https://www.lsa-llc.com/contact/): Get in touch with Life Settlement Advisors via phone, email, or contact form for inquiries about life settlements and policy sales
- [Resources](https://www.lsa-llc.com/resource-downloads/): Free downloadable guides and resources on life settlements, senior financial planning, healthcare costs, mental health, and more for advisors and seniors
- [Blog](https://www.lsa-llc.com/blog/): Insights on life settlements, insurance options for seniors, tax implications, estate planning, and retirement funding strategies
- [Privacy Policy](https://www.lsa-llc.com/privacy-policy/): Overview of data collection practices, usage for site improvement and legal compliance, and user rights including opt-out options

## Blog Content

### Life Settlement Fundamentals
- [How to Sell Your Life Insurance Policy for Cash Through a Life Settlement](https://www.lsa-llc.com/how-to-sell-your-life-insurance-policy-for-cash-through-a-life-settlement/): Step-by-step guide on selling a life insurance policy for cash, including eligibility, process, and benefits of a life settlement.
- [Life Settlement Taxes: What to Know Before You Sell](https://www.lsa-llc.com/life-settlement-taxes-what-to-know-before-you-sell/): Explanation of tax implications for life settlements, covering taxable portions, potential exemptions, and consulting with tax professionals.
- [How Long Do You Have to Wait to Sell Your Life Insurance Policy?](https://www.lsa-llc.com/how-long-do-you-have-to-wait-to-sell-your-life-insurance-policy/): Details on timing and state regulations for selling a life insurance policy, including contestability periods and waiting requirements.
- [Can I Sell My Term Life Insurance Policy?](https://www.lsa-llc.com/can-i-sell-my-term-life-insurance-policy/): Information on selling term life insurance policies, including eligibility criteria, conversion options, and settlement possibilities.
- [How to Choose the Right Life Settlement Broker or Provider](https://www.lsa-llc.com/how-to-choose-the-right-life-settlement-broker-or-provider/): Tips for selecting a reputable life settlement broker or provider, emphasizing experience, transparency, and client-focused service.

### Retirement & Income Strategy
- [How Life Settlements Fit Into a Comprehensive Retirement Income Strategy](https://www.lsa-llc.com/how-life-settlements-fit-into-a-comprehensive-retirement-income-strategy/): Overview of how life settlements can provide cash to enhance retirement income, covering financial planning and asset optimization.
- [One Big Beautiful Bill: What It Means for Retirement Income](https://www.lsa-llc.com/one-big-beautiful-bill-what-it-means-for-retirement-income/): Discussion on legislative impacts on retirement income, including how life settlements can address financial gaps created by new tax laws.
- [Paying for Care or Funding Retirement: Alternatives to Keeping a Joint Life Policy](https://www.lsa-llc.com/paying-for-care-or-funding-retirement-alternatives-to-keeping-a-joint-life-policy/): Exploration of alternatives to maintaining joint life policies, such as life settlements, to fund healthcare or retirement needs.
- [Survivorship Life Insurance: Estate Planning After Tax Law Changes](https://www.lsa-llc.com/survivorship-life-insurance-estate-planning-after-tax-law-changes/): Insights on adapting estate planning with survivorship life insurance in response to recent tax law changes, including life settlement options.
- [Life Settlement Taxes: What to Know Before You Sell](https://www.lsa-llc.com/life-settlement-taxes-what-to-know-before-you-sell/): Explanation of tax implications for life settlements, covering taxable portions, potential exemptions, and consulting with tax professionals.

### Insurance Policy Decisions
- [When to Cancel Joint Survivorship Life Insurance](https://www.lsa-llc.com/when-to-cancel-joint-survivorship-life-insurance/): Guidance on when to cancel joint survivorship life insurance, weighing costs, benefits, and alternatives like life settlements.
- [Can I Sell My Term Life Insurance Policy?](https://www.lsa-llc.com/can-i-sell-my-term-life-insurance-policy/): Information on selling term life insurance policies, including eligibility criteria, conversion options, and settlement possibilities.
- [Paying for Care or Funding Retirement: Alternatives to Keeping a Joint Life Policy](https://www.lsa-llc.com/paying-for-care-or-funding-retirement-alternatives-to-keeping-a-joint-life-policy/): Exploration of alternatives to maintaining joint life policies, such as life settlements, to fund healthcare or retirement needs.
- [How to Choose the Right Life Settlement Broker or Provider](https://www.lsa-llc.com/how-to-choose-the-right-life-settlement-broker-or-provider/): Tips for selecting a reputable life settlement broker or provider, emphasizing experience, transparency, and client-focused service.
- [Survivorship Life Insurance: Estate Planning After Tax Law Changes](https://www.lsa-llc.com/survivorship-life-insurance-estate-planning-after-tax-law-changes/): Insights on adapting estate planning with survivorship life insurance in response to recent tax law changes, including life settlement options.

### Advisor Support & Fiduciary Guidance
- [Life Settlement Process: A Guide for Fiduciary Advisors](https://www.lsa-llc.com/life-settlement-process-a-guide-for-fiduciary-advisors/): Detailed guide for fiduciary advisors on the life settlement process, including client evaluation, documentation, and compliance.
- [How to Choose the Right Life Settlement Broker or Provider](https://www.lsa-llc.com/how-to-choose-the-right-life-settlement-broker-or-provider/): Tips for selecting a reputable life settlement broker or provider, emphasizing experience, transparency, and client-focused service.
- [How Life Settlements Fit Into a Comprehensive Retirement Income Strategy](https://www.lsa-llc.com/how-life-settlements-fit-into-a-comprehensive-retirement-income-strategy/): Overview of how life settlements can provide cash to enhance retirement income, covering financial planning and asset optimization.
- [Survivorship Life Insurance: Estate Planning After Tax Law Changes](https://www.lsa-llc.com/survivorship-life-insurance-estate-planning-after-tax-law-changes/): Insights on adapting estate planning with survivorship life insurance in response to recent tax law changes, including life settlement options.
- [Life Settlement Taxes: What to Know Before You Sell](https://www.lsa-llc.com/life-settlement-taxes-what-to-know-before-you-sell/): Explanation of tax implications for life settlements, covering taxable portions, potential exemptions, and consulting with tax professionals.

### Tax, Law & Regulatory Impacts
- [One Big Beautiful Bill: What It Means for Retirement Income](https://www.lsa-llc.com/one-big-beautiful-bill-what-it-means-for-retirement-income/): Discussion on legislative impacts on retirement income, including how life settlements can address financial gaps created by new tax laws.
- [Survivorship Life Insurance: Estate Planning After Tax Law Changes](https://www.lsa-llc.com/survivorship-life-insurance-estate-planning-after-tax-law-changes/): Insights on adapting estate planning with survivorship life insurance in response to recent tax law changes, including life settlement options.
- [Life Settlement Taxes: What to Know Before You Sell](https://www.lsa-llc.com/life-settlement-taxes-what-to-know-before-you-sell/): Explanation of tax implications for life settlements, covering taxable portions, potential exemptions, and consulting with tax professionals.
- [When to Cancel Joint Survivorship Life Insurance](https://www.lsa-llc.com/when-to-cancel-joint-survivorship-life-insurance/): Guidance on when to cancel joint survivorship life insurance, weighing costs, benefits, and alternatives like life settlements.
- [Can I Sell My Term Life Insurance Policy?](https://www.lsa-llc.com/can-i-sell-my-term-life-insurance-policy/): Information on selling term life insurance policies, including eligibility criteria, conversion options, and settlement possibilities.

## Optional
### How do I sell my life insurance policy?
You can get a [Free Consultation](https://www.lsa-llc.com/do-i-qualify/) so that you know the value of your policy before committing to any sales. We can provide you with all of the answers to the questions you may have about selling your life insurance policy, and walk through the process with you every step of the way.

### How selling a life insurance policy works
- *Qualify:* Using our Qualification Calculator, you give us a little bit of basic information about you and your life insurance policy. Instantly, we can tell you if your policy is a good fit for the life settlement market.  
- *Apply:* Filling out an application is easy. Simply download or request our application and send us a completed copy along with a copy of your life insurance policy.  
- *Review:* We review your application, policy, and medical records. Working with independent third-party underwriters, we determine whether or not you qualify to enter the market.  
- *Offer:* After your application is reviewed and accepted, we make an offer on the policy based on all of the information you provided.  
- *Sell:* If an offer is accepted, a closing packet is sent to the seller for completion. After that packet is completed, the seller receives a lump payout for their policy.  

### How much do you get for selling your life insurance policy? 
Recent data suggests you can recoup around *20% of a policy's face value* in a life settlement. So, what is the cash value of a $100,000 whole life insurance policy? If we apply the 20% figure suggested above, the cash value would be right around *$20,000, which is much better than the policy's surrender value.* The exact amount a policy seller receives in a life settlement depends on a number of factors. It begins with the face value of the policy, which can range from $100,000 to multi-million dollar policies. Other factors to be included in the final payout for the seller include:
- Life expectancy of the seller
- Amount of premiums that will have to be paid to keep the policy in force
- Cash surrender value of the policy
- Loans against the policy
- Type of policy
- Rating of the insurance carrier

### Am I eligible to sell my life insurance policy?
Generally speaking, there are five requirements that must be met to be considered for a life settlement. These requirements include:
- *Policyholder's age:* The ideal life settlement candidate is in their mid-70s or older.  
- *Type of life insurance policy:* Whole life, universal life, joint life or second to die, variable universal life, or indexed universal life.  
- *Current premiums:* Policy premiums typically need to be less than 5% of the face value for a life settlement.  
- *Death benefit amount:* Death benefits must payout at least $100,000 to qualify for a life settlement.  
- *Current medical conditions of the insured:* Individuals 65 and older may be able to sell, especially if chronic medical conditions are present.  

### When does it make sense to sell my life insurance policy?
There are a few situations in which policyholders may opt for a life settlement. These include dealing with unaffordable premiums, needing access to immediate liquid funds, finding your circumstances and beneficiary needs have changed, or seeking to downsize a policy.

### What are the Pros and Cons of Selling Your Life Insurance Policy?
#### Advantages:
- Provides a one-time, lump-sum payout, providing immediate liquid assets for the policyholder, which can be used for things like medical bills, retirement, or even to travel with family members.  
- You no longer have to worry about paying costly premiums.  

#### Disadvantages:
- It is important to note that policyholders will likely have to *pay taxes* on at least part of the payout they receive.  
- For some, selling their life insurance can be a difficult process, from finding a buyer to working through all the legal paperwork and requirements. Working with companies like Life Settlement Advisors easily overcomes this disadvantage, however.  
- For those policyholders who still have heirs, it is important to remember that selling their entire policy means their heirs will not receive a death benefit.  

### What is a senior life settlement?
A senior life settlement is the sale of an unwanted, underperforming, or obsolete life insurance contract by an elderly individual to a third party for an amount less than the face value but in excess of the cash surrender value. Life settlements exist out of the need for seniors to attain access to the life insurance death benefit while still living. With a life settlement, the insured has a medically determined life expectancy of at least three years or longer.

### How did life settlements get started?
Life insurance policies became a transferable property as a result of the Supreme Court case of Grigsby v. Russell in 1911. The ruling established that as a property, life insurance policies contained specific legal rights, including the right to name the policy beneficiary, change the beneficiary designation, assign the policy as collateral for a loan, borrow against the policy, or sell the policy to another party.This enabled policy holders to opt into a life settlement, which gave them an upfront benefit while they are still living. Life settlements are good options when a policy becomes unwanted, obsolete, or underperforms.

### What are the criteria used to determine the value of a life policy?
Before a life settlement is finalized, there are certain factors that decide whether or not a policy can be sold as well as the figures of the settlement itself. These factors start with the life insurance policy holder, such as age, life expectancy, and health status. Then, the factors dive into the financial parameters of the policy, including:
- Future premium costs
- Market rate return on similar investments
- Financial status of issuing insurer
- Structure of policy

### Why would someone sell their life insurance policy in a life settlement?
There are a number of reasons why someone would opt into a life settlement. Here are some common, and not so common, reasons why someone would sell their life insurance policy:
- The insurance policy is no longer needed or wanted by the policyholder.
- The cost of living becomes too high for the seller.
- Premium payments have become unaffordable.
- The policyholder is considering surrendering the policy.
- The policy is about to lapse.
- There has been a change in estate planning needs.
- The policyholder has seen a change in financial circumstances.
- A change in life circumstance, such as divorce or death, has occurred.
- A medical need or injury has occurred, and the seller cannot afford payments.

### Who is an ideal life settlement candidate?
Life settlements aren't the best option for everyone, and not everyone will qualify for one. The ideal candidates for a life settlement include seniors, age 65 and older, with multiple or underperforming life insurance policies who have:
- A life expectancy of three to 15 years
- A change in insurability since the policy was issued
- A death benefit minimum of $100,000
- A policy that has moved beyond the two-year contestability period.

If you're not sure whether you would qualify for a life settlement, our qualification calculator can help determine if you would be a good candidate.

### Who makes the ongoing premium payments after a life settlement is finalized?
In nearly every scenario, the buyer and new owner of the policy will assume the financial requirements of the policy, including the ongoing premium payments required to keep the policy from lapsing.

### Will the insured need to take a medical exam during a life settlement agreement?
While health status and life expectancy are important factors to consider when negotiating a life settlement, the policy seller does not have to take a medical exam. All settlement offers are based upon preexisting medical records obtained from the insured's physician(s). All information is obtained in a HIPAA compliant process and remains fully confidential.

### Will the policy qualify if it is owned by someone other than the insured?
In most cases, a life insurance policy is owned by the policy's designated insured person. However, in some cases, policies insuring a person are owned by others, including individuals, a trust, a corporation, or charitable organization. The short answer is that yes, life insurance policies qualify for life settlements even if they are owned by a person or entity that differs from the policy's insured person. In most cases, an individual that owns a life insurance policy insured on someone else is a family member, spouse/domestic partner, or close friend.

### Is a life settlement the same as a viatical settlement?
No, a life settlement requires a life expectancy of at least three years in individuals typically older than 65 years old and does not involve a terminal illness. A viatical settlement involves insured individuals with terminal illnesses and a life expectancy of less than two years. While both involve selling life insurance policies prior to the death benefit being issued, they are typically utilized for different reasons. For example, a viatical settlement might be a good option for someone with a terminal illness and large medical bills. A life settlement may be chosen by a senior who no longer needs the life insurance policy or their standard living costs are unaffordable under their financial situation.

### Why would anyone consider a life settlement?
While a life settlement forfeits the death benefit of the beneficiary for a smaller payout, there are a number of reasons why someone would consider selling a life insurance policy. A life settlement may provide a better alternative than allowing an unneeded policy to lapse or be surrendered for its cash value. Life settlements are considered for a variety of reasons, including:

#### Personal Purposes:
- To use the proceeds to purchase replacement coverage
- Life insurance policy is no longer needed or not performing as intended
- Financial obligations or unforeseen financial needs
- Gifts to family members or contributions to charity
- Unaffordable premium payments
- Bankruptcy liquidation or Divorce

#### Estate Planning Purposes:
- Estate taxes no longer an obligation
- Liquefy inactive asset
- Gift or other tax related expenses
- Estate law changes

#### Business Purposes:
- Buy/sell funding is no longer an obligation
- Payout or change in deferred compensation
- Elimination of the need for the Key Man
- Change in financial needs

### Will the insured be required to accept an offer from a provider?
Life settlements are negotiations between seller and buyer. The transaction must be accepted by both parties and by no means is anyone required to accept an offer that they don't like. In most scenarios, sellers would have a lawyer and/or a financial advisor present to make sure they are being heard and their wishes accounted for.

### What if the insured dies shortly after selling his or her policy in a life settlement?
If the insured person on the life insurance policy dies within 15 days after receiving the cash proceeds from the life settlement, the contract will automatically cancel unless stated otherwise. The provider will need to pay the original policy owner or beneficiaries any proceeds it receives from the policy (minus any money the provider paid for the purchase of the policy and any life insurance premiums paid to keep it in-force).

### Can I sell a portion of my policy in a life settlement?
Insurance companies will often allow a policy owner to divide the policy into multiple parts. While this scenario is typically seen with policies of at least $250,000 and higher, a policy owner may sell a part of his or her policy and retain a portion for him- or herself. Life Settlement Advisors can help guide you toward this service if you're interested in dividing and selling only a portion of your life insurance policy.

### Are there any restrictions on how proceeds from a life settlement may be used?
The money paid in a life settlement or viatical settlement becomes the seller's to do with what he or she chooses. In most cases, a policy seller has a specific need or use for the payout. Some use the proceeds to purchase long-term care insurance or a more appropriate performing life insurance policy. Others gift it to family members and/or charities or fund investments. Of course, some use the money to better their own quality of living for the remainder of their lives.

### What are the tax implications of a life settlement?
In most life settlement scenarios, proceeds are seen and treated as capital gains. The cash surrender value in excess of the basis in the policy is treated as ordinary income. In any scenario, a tax professional should be consulted for tax-related guidance before and after a life settlement is finalized.

### Is the sale of life settlements regulated by any institutional or federal agencies?
Yes, life settlements are regulated on a state-by-state basis by the respective state's Department of Insurance. As of right now, 45 states have requirements and regulations in place that govern how these settlements are handled.

### What types of policies qualify for a life settlement?
As long as the policy has been in force for a minimum of two years, any of the following types of insurance qualify:
- Convertible term
- Universal life
- Whole life
- Survivorship or Joint Life
- Adjustable
- Key man or COLI (Corporate Owned Life Insurance)
- Group life insurance (as long as it is convertible)