Turn your group life insurance policy into a cash payout—get financial relief when you need it most.
If you’ve recently left a job or are facing serious health challenges, your group life insurance policy could be worth more than you think. In many cases, selling that policy can provide a significant lump sum cash payment—giving you the power to cover medical bills, reduce debt, or simply regain financial control. Instead of letting your policy lapse or continue paying premiums you can’t afford, consider a smarter option.
Get a free, confidential estimate from American Life Fund today—see how much your group policy could be worth.
Can You Sell a Group Life Insurance Policy for Cash?
Most people assume group life insurance coverage ends when employment does—but in many cases, that’s not the end of the road. If your group life insurance policy is convertible, you may be able to turn it into an individual policy and then sell it through a life settlement transaction.
This option is especially helpful if you’re dealing with a serious health condition and need immediate financial support. Instead of letting the policy expire or continuing to pay unnecessary premium payments, you can potentially unlock its value as a lump sum cash payment.
Whether your policy is term, whole, FEGLI, or another type, it’s worth checking if it qualifies. A group policy can offer substantial cash value that may be more useful now than as a future benefit.
How to Sell a Group Life Insurance Policy
Step 1 – Check If Your Policy Is Convertible
Some group life insurance policies end when you leave your job—but some offer the option to convert into an individual life insurance policy within thirty days of leaving or being terminated from employment.
Step 2 – Request a Free Policy Estimate
If your policy is convertible, the next step is to find out what it could be worth. American Life Fund offers a free, no-obligation estimate based on your policy details, health condition, and current insurance policy status.
Step 3 – Submit an Application
If you decide to move forward, you’ll complete a short application and provide basic medical and policy information. This helps our team assess your health, face value, and any other important factors when calculating an offer amount.
Step 4 – Review and Accept Your Offer
You’ll receive a personalized offer for your policy, with no hidden fees or pressure to accept.
Step 5 – Receive Your Lump Sum Cash Payment
Once the offer is accepted, funds are typically delivered within 1-2 weeks. You can use the cash payout to cover medical expenses, pay down debt, or support your family. The policy’s ownership then transfers to the company the policy is sold to, and you’re no longer responsible for future premiums.
Call American Life Fund at (877) 261-0632 or fill out our quick online form for a free, confidential quote— no pressure.
Eligibility Requirements for Selling a Group Life Insurance Policy
Before you can move forward with a life settlement, you must meet a few basic qualifications:
Health Condition
To qualify for a viatical settlement, you must have a health condition considered serious or life-threatening—such as Cancer, ALS, or Alzheimer’s. Documentation such as recent medical records will be needed.
Policy Type
American Life Fund works with a wide range of life insurance types, including:
- Term life insurance policy
- Whole life insurance
- Permanent life insurance
- FEGLI and other employer-provided coverage
Almost any life insurance policy is potentially eligible if it can be transferred and meets other criteria.
Policy Age and Value
To qualify, your existing policy must:
- Be active
- Be at least two years old
- Have a face value of $200,000 or more
Ownership and Authority
Only the policyholder or someone with legal authority (such as a power of attorney or trustee) can initiate the life settlement transaction. You’ll also need access to your policy details for review.
Why Consider a Life Settlement Over Letting the Policy Lapse?
If you’re struggling to pay premiums or no longer need your coverage, letting a life insurance policy lapse may seem like your only option. But doing so often means walking away from the real cash value your policy has built up over time.
A life settlement transaction allows you to turn your current policy into money you can use now—without relying on financial assistance programs, dipping into retirement savings, or qualifying for government aid like food stamps.
Rather than canceling your policy for a limited cash surrender amount or leaving it untouched, you can access a higher payout through a life settlement company like American Life Fund.
This gives you more control over how you handle:
- Mounting medical bills
- Ongoing nursing care
- Out-of-pocket medical expenses
- Unplanned living costs or financial emergencies
And in certain situations, your lump sum cash payment could be tax free. However, it’s wise to consult a tax expert or check with your state insurance department to understand any income tax obligations that may apply.
Whether you hold term policies, permanent life insurance policies, or other insurance policy types, a life settlement can offer real relief—and real choices—in uncertain times.
Why Choose American Life Fund?
American Life Fund is a trusted life settlement company with a strong track record of helping individuals access the highest possible cash payout for their insurance policy—without broker fees or delays.
We offer:
- Direct access to real offers (no life settlement broker markup)
- Fast, compassionate service
- Expertise in group life insurance policy settlements and viatical settlement options
Learn more about why people choose American Life Fund
How does my health status or life expectancy affect my offer?
American Life Fund works with individuals in a wide range of health situations. While life expectancy is considered during evaluation, we understand that every case is unique. Our process allows for flexibility—not rigid thresholds—so you can still qualify even if your prognosis isn’t clearly defined.
Will selling my policy affect any future death benefit for my family?
Yes. Once your life policy is sold, the life insurance company will pay the benefit to the new owner instead of your original beneficiaries. However, many people find the immediate value of a lump sum cash payment better serves their family’s current financial needs.
Are there tax implications if I sell my life insurance policy?
In many cases, viatical settlements are tax free, but this can vary depending on your situation and state.
How do premiums paid or the premium amount affect my settlement?
The total premiums paid, along with your current premium amount, factor into the evaluation of your policy. Generally, policies with higher costs to maintain may offer different value outcomes than those that are more cost-efficient.
