How Old Do You Have To Be To Sell Your Life Insurance?

13 Nov 2017
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As you get older, your life insurance policy may not offer the type of protection that you need anymore. Fortunately, it may be possible to sell your policy and get some or all of your original investment back. For some, it may provide a means of supporting themselves in retirement. However, you generally have to be a certain age to sell your policy.

Most Policies Cannot Be Sold Until Age 73

Those who are looking to sell their life insurance policies for cash should read the fine print in their policies to determine when they can sell. However, a majority of policies cannot be sold until age 73. As a general rule, you can’t sell until you are at least 70, but it may be possible to negotiate the sale of a policy with the company that is offering to buy it. In some cases, the minimum age to buy a policy depends on your life expectancy.

An Exception May Be Made for Terminal Illness

If you are terminally ill, you may be able to sell your policy via life settlement at any age. This may make it easier to get cash to pay for medical treatments or have money to provide to your children or grandchildren. Whether you want to sell your policy or simply name someone as a beneficiary to your policy is something that you may want to discuss with an estate planning professional.

Make Sure That Your Premiums Haven’t Lapsed

Regardless of when you choose to sell your policy, make sure that you have paid your premiums. In the event that you become temporarily or permanently mentally incapacitated, it is important to have someone pay those premiums on your behalf. Otherwise, the policy and the money inside of it may be lost forever.

How Much Is Your Policy Worth?

In many cases, your policy has a cash value between $50,000 to $100,000. This ensures that both the company buying the policy and the person selling it can make money from the transaction. You should also make sure that the policy can be transferred before choosing to sell it, regardless of how much it may be worth.


Selling a life insurance policy may give you access to tens of thousands of dollars quickly. However, make sure that you can sell the policy and that you meet a buyer’s criteria. Prior to making such a deal, it may be worthwhile to talk to a financial adviser about your decision.

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