Sell Your Life Insurance Policy in Arizona Through a Life Settlement
Arizona's life settlement law gives sellers a 15-day cancellation right and escrow-protected proceeds. Trust Life Settlements works with Arizona policyowners, directly and with licensed partner brokers, using a published Flat-Fee.
Can I Sell My Life Insurance Policy in Arizona?
Arizona attracts retirees to Sun City, Scottsdale, Tucson, Green Valley, and Prescott, many of them carrying policies bought in other states. Arizona is also one of the more detailed life settlement states, with specific rules on timing, escrow, and insurer conduct that work in the seller's favor.
Moving to Arizona often changes what a family needs from life insurance. A policy bought to protect a mortgage or a career may now simply be an expensive line in a fixed retirement budget. Instead of surrendering or lapsing it, an Arizona policyowner can sell it to a licensed provider for a lump sum, with the buyer paying all future premiums.
Arizona's escrow rule is one of its strongest protections: the buyer's money is set aside before the policy changes hands, and it must reach you within three business days of the insurer confirming the transfer.
Arizona Life Settlement Regulations
Life settlements in Arizona are regulated by the Arizona Department of Insurance and Financial Institutions, providing consumer protections at every step of the transaction.
Settlement Statute
Yes
Licensing Required
Yes
Disclosure Required
Yes
Rescission Period
15 days
What Arizona Policyholders Should Know
Arizona regulates life settlements under A.R.S. § 20-3201 and the sections that follow, overseen by the Department of Insurance and Financial Institutions (DIFI).
Sellers may rescind within 15 days after the contract is signed by all parties and all required disclosures are received (A.R.S. § 20-3211).
A policy generally cannot be settled within two years of issue, with exceptions such as terminal illness, retirement, divorce, a spouse's death, or disability.
Settlement proceeds are placed in escrow and must be released to the seller within three business days after the insurer acknowledges the transfer.
Arizona insurers may not make false or misleading statements to discourage a lawful life settlement.
What Your Policy May Be Worth in Arizona
Offers often exceed the policy's cash surrender value
Actual amounts depend on age, health, policy type, death benefit, and future premium obligations. Request a free policy review for a personalized assessment.
Arizona's Two-Year Rule and Its Exceptions
Arizona generally bars settling a policy during the first two years after it is issued. The rule targets policies bought only to be resold, not long-held coverage.
The law recognizes that life changes. Exceptions apply if the owner or insured becomes terminally ill, retires from full-time work, divorces, loses a spouse, becomes disabled, or sells a closely held business under a pre-existing buyout agreement. Converted term policies can also count time under the original policy.
Who May Qualify for a Life Settlement in Arizona?
Life settlement eligibility is case-specific and depends on multiple factors. Institutional buyers evaluate each policy individually, considering:
Age and life expectancy of the insured
Current and anticipated health status
Policy type and death benefit amount
Annual premium cost and future obligations
Policy economics and cash surrender value
Conversion privileges (for term policies)
Current buyer demand for comparable policies
Remaining premium-paying period
There is no guarantee of qualification or a specific offer amount. Each case is evaluated on its own merits.
What Types of Life Insurance Policies Can Be Sold in Arizona?
Depending on the specific facts, several types of life insurance policies may potentially qualify for a life settlement in Arizona:
Universal Life
Including indexed and variable
Whole Life
Traditional and participating
Convertible Term Life
With active conversion privilege
Survivorship / Second-to-Die
Where appropriate
Not every policy type is automatically marketable. Eligibility depends on the individual policy's economics and buyer demand.
Can I Sell a Term Life Insurance Policy in Arizona?
A term life insurance policy may have settlement value in Arizona if it includes a conversion option that allows conversion to permanent coverage and the transaction economics support a settlement. The conversion privilege is what gives the policy value to institutional buyers — pure term policies without conversion options generally do not qualify. If you hold a convertible term policy, contact us to discuss whether your conversion window and policy characteristics may support a life settlement.
Arizona Life Settlement Broker Fees: Flat-Fee vs. Percentage Commission
Many traditional life settlement brokers use percentage-based compensation that may equal approximately 20%–30% of settlement proceeds, depending on the broker, transaction, and applicable requirements. With a percentage-based model, the higher your settlement offer, the more you pay in broker fees.
Trust Life Settlements uses predetermined fixed-dollar tiers rather than calculating brokerage compensation as a percentage of settlement proceeds. The settlement amount determines which of Trust's five Flat-Fee tiers applies. This structure is disclosed in writing before you commit and paid from settlement proceeds at closing — never out of pocket.
Trust Life Settlements Five-Tier Flat-Fee Schedule
| Settlement Offer / Proceeds | Flat-Fee |
|---|---|
| $0 – $100,000 | $6,000 |
| $100,001 – $250,000 | $15,000 |
| $250,001 – $500,000 | $30,000 |
| $500,001 – $750,000 | $45,000 |
| $750,001+ | $60,000 |
Maximum fee: $60,000. Fees are paid from settlement proceeds at closing — never out of pocket. View full pricing details
Arizona Life Settlement Broker vs. Provider: What's the Difference?
Life Settlement Broker
Represents the policyowner in seeking competitive offers from multiple institutional buyers. A broker's role is to advocate for the seller, present all offers in writing, and provide transparent disclosure of compensation and all bids received.
Life Settlement Provider / Buyer
Operates on the purchasing side of the transaction. Providers evaluate policies and submit offers to acquire them. When a policyowner works directly with a single provider, they may not see competing offers from other institutional buyers.
Trust Life Settlements acts as the policyowner's broker and does not purchase policies for its own account. We represent the seller — not the buyer — seek competitive offers from more than 20 institutional providers, present all bids in writing, and charge a transparent Flat-Fee rather than a percentage commission.
How to Sell a Life Insurance Policy in Arizona
Free Review
Contact us for a no-obligation policy review. We evaluate your Arizona policy economics and preliminary eligibility.
Medical Records
With your authorization, we gather medical records and policy details to help institutional buyers evaluate your case.
Competitive Bidding
Your case is submitted to more than 20 institutional life settlement buyers. All offers are presented to you in writing.
Close & Get Paid
Review, accept, and close. Arizona gives you 15 days after signing and receiving all disclosures to cancel.
Arizona Life Settlement FAQ
How long do I have to cancel a life settlement in Arizona?
Arizona gives sellers 15 days after the contract is signed by all parties and all required disclosures have been received. To cancel, you give notice and return the proceeds and any premiums the provider paid during that period. If written notice of this right was never given, the window stays open until 30 days after it is.
Can I sell a policy I bought less than two years ago in Arizona?
Usually not. Arizona restricts settlements during the first two years after a policy is issued. Exceptions include terminal illness, retirement from full-time work, divorce, the death of a spouse, a qualifying disability, and certain business buyouts.
How are Arizona settlement proceeds protected?
The provider must deposit the purchase price in an escrow or trust account at a state or federally chartered financial institution. The escrow agent then has three business days after the insurer acknowledges the ownership change to pay you.
Can my insurance company talk me out of a life settlement in Arizona?
Arizona law prohibits insurers from making false or misleading statements to dissuade an owner from a lawful life settlement, and from unreasonably delaying the ownership or beneficiary change.
What would an Arizona Flat-Fee example look like?
Hypothetically, a $400,000 settlement offer falls in Trust's $250,001–$500,000 tier, so the broker fee is $30,000 and $370,000 remains before other costs and taxes. That flat amount is disclosed in writing before you commit. This is an illustration only, not a guarantee of any offer.
Have more questions? View our full FAQ or get in touch.
Sources
Last reviewed September 2026. This page is general information, not legal or tax advice.
Before You Surrender or Lapse Your Policy, Find Out What It May Be Worth
Request a confidential policy review for your Arizona policy. We disclose every offer and our fee in writing before you commit.