Sell Your Life Insurance Policy in District of Columbia Through a Life Settlement
Washington, D.C. has no general life settlement statute, which makes transparency your responsibility. Trust Life Settlements works for the policyowner, shows every offer in writing, and charges a published Flat-Fee.
Can I Sell My Life Insurance Policy in District of Columbia?
The District of Columbia is home to many current and retired federal workers, attorneys, lobbyists, and nonprofit professionals, many of whom hold individual permanent life insurance alongside employer coverage. D.C. has never adopted a general life settlement act, so residents of Capitol Hill, Georgetown, Upper Northwest, and every ward can sell a policy without a District law defining how the process must work.
For many D.C. residents, a life insurance policy bought during peak earning years becomes harder to justify in retirement. Surrendering it for cash value or letting it lapse are the usual choices. A life settlement is a third option: selling the policy to an institutional buyer who pays you a lump sum and takes over the premiums.
Without a D.C. settlement statute, your protection comes from the contract and from who represents you. Insist on seeing every offer, the broker's compensation, and the provider contract in writing before you sign anything.
District of Columbia Life Settlement Regulations
District of Columbia does not have a dedicated life settlement act. Insurance matters in the state are overseen by the D.C. Department of Insurance, Securities and Banking, and general insurance and consumer protection laws apply.
Settlement Statute
No
Licensing Required
No
Disclosure Required
No
Rescission Period
Set by contract
What District of Columbia Policyholders Should Know
The District of Columbia has no general life settlement or viatical settlement statute, so there is no D.C.-specific settlement license, disclosure form, or mandatory cancellation window.
D.C. Code § 1-622.08 mentions viatical settlements only for terminally ill District government employees and annuitants assigning their District employee group life coverage. It is not a consumer framework for ordinary policy sales.
The Department of Insurance, Securities and Banking (DISB) oversees insurance licensing and consumer assistance in the District.
General D.C. insurance, contract, privacy, and antifraud laws still apply to every settlement transaction.
What Your Policy May Be Worth in District of Columbia
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.
Federal Employees, District Employees, and Life Settlements in D.C.
D.C.'s only viatical settlement provision applies to District government employees and annuitants who are terminally ill and covered by the District's employee group life program. It allows them to assign that coverage, and it does not extend to private or individually owned policies.
Federal employee group life coverage (FEGLI) and employer group policies often cannot be sold at all, but many D.C. residents also own individual whole life, universal life, or convertible term policies that may qualify. We review which of your policies are eligible before anything else.
Who May Qualify for a Life Settlement in District of Columbia?
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 District of Columbia?
Depending on the specific facts, several types of life insurance policies may potentially qualify for a life settlement in District of Columbia:
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 District of Columbia?
A term life insurance policy may have settlement value in District of Columbia 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.
District of Columbia 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
District of Columbia 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 District of Columbia
Free Review
Contact us for a no-obligation policy review. We evaluate your District of Columbia 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. D.C. law does not mandate a cancellation window for life settlements, so we review the contract's rescission terms with you before you sign.
District of Columbia Life Settlement FAQ
Can I sell my life insurance policy in Washington, D.C.?
Yes. Selling a policy you own is legal in the District. D.C. has not adopted a life settlement act, so the sale is governed by general contract, insurance, and consumer protection law rather than a dedicated settlement law.
Does D.C. have any viatical settlement law?
Only a narrow one. D.C. Code § 1-622.08 lets a terminally ill District government employee or annuitant assign their District employee group life insurance in a viatical settlement. It does not regulate ordinary life settlements by D.C. residents.
Does a life settlement broker need a D.C. license?
The District does not issue a separate life settlement broker license. Insurance producer licensing may still apply depending on the activities involved. Ask any broker you speak with how they are licensed and in which jurisdictions.
Is there a cancellation period after I sign in D.C.?
D.C. law does not require one for life settlements. Many provider contracts still include a cancellation right, so review the contract's rescission terms carefully before signing.
What would a D.C. 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. A broker charging 25% would take $100,000 of the same offer. This is an illustration only, not a guarantee of any offer.
Have more questions? View our full FAQ or get in touch.
Sources
- D.C. Department of Insurance, Securities and Banking
- D.C. Code § 1-622.08 — District Employee Group Life Insurance
- LISA — State Regulations Overview
Last reviewed September 2026. This page is general information, not legal or tax advice.
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Before You Surrender or Lapse Your Policy, Find Out What It May Be Worth
Request a confidential policy review for your District of Columbia policy. We disclose every offer and our fee in writing before you commit.