Can You Sell a Life Insurance Policy in California?
If you’re asking, “can you sell a life insurance policy in California?”, the short answer is yes — but the details matter.
Selling a life insurance policy is a regulated transaction, and it’s not the right choice for everyone.
How Selling a Life Insurance Policy Works
In California, policyowners may be able to sell a qualifying policy through:
A life settlement (typically age-based)
A viatical settlement (health-based)
Eligibility usually depends on:
Age and health
Policy type (term or permanent)
Death benefit amount
Premium costs
Whether the policy is still active
Why People Sell Life Insurance Policies
Common reasons include:
Premiums are no longer affordable
Coverage is no longer needed
Estate planning changes
Medical or care-related expenses
Policies purchased years ago that no longer fit current needs
What to Review Before Selling
Before selling, it’s critical to evaluate:
Cash surrender value
Reduced paid-up options
Accelerated death benefits
Tax implications
Impact on heirs and estate plans
Selling should be considered after understanding these alternatives.
Life Insurance Buyers vs Advisors
Many websites advertising “sell your life insurance” are buyers, not advisors. Their goal is to purchase policies.
A fiduciary advisor helps you:
Compare all options
Understand long-term consequences
Avoid unnecessary or unsuitable decisions
Final Thoughts for California Policyowners
Selling a life insurance policy is permanent. Once sold, the buyer becomes the beneficiary and pays future premiums.
That’s why guidance — not pressure — is essential.
Thinking About Selling a Life Insurance Policy in California?
Get clear answers about your options before making a permanent decision.