A life settlement is the sale of a life insurance policy to a third party for a lump sum of cash today. 90% of the US population now falls under the protection of life settlement regulation in 45 of 50 states.
The amount received from selling a policy will always be greater than the cash surrender value but less than the policy’s face value. The amount you get varies and depends on many variables including, but not limited to, the future premiums required to keep the policy in force, the insured’s life expectancy, and the policy’s face value.