Sell Your Life Insurance Policy in New York Through a Life Settlement
Trust Life Settlements is an independent Flat-Fee life settlement broker serving eligible New York policyowners. We market qualified policies to institutional life settlement buyers and seek competitive offers while using a transparent five-tier Flat-Fee structure rather than calculating brokerage compensation as a percentage of settlement proceeds.
Can I Sell My Life Insurance Policy in New York?
New York's insurance market is among the most heavily regulated in the country, and its life settlement framework under Insurance Law Article 78 reflects that commitment to consumer protection. The state's large senior population — estimated at over 3.3 million residents aged 65 and older according to U.S. Census Bureau data — and the prevalence of policies purchased through professional careers, employer-sponsored programs, and estate planning contribute to an active life settlement market. Navigating New York's regulatory requirements calls for brokers experienced with DFS compliance and the state's specific disclosure and licensing standards.
If you own a life insurance policy in New York and are considering surrendering or lapsing it, a life settlement may provide a higher-value alternative. Through a life settlement, a policyowner sells an existing life insurance policy to a third-party institutional buyer for a lump-sum cash payment that is typically greater than the policy's cash surrender value but less than the full death benefit. The buyer assumes all future premium payments and becomes the policy's new beneficiary.
New York's rescission right — which extends through 15 days after receipt of settlement proceeds — provides meaningful consumer protection. Buyers factor this timeline into their evaluation, and closings typically take 90 to 150 days from initial submission. As with any life settlement, actual timelines and offers vary based on individual circumstances.
How Life Settlements Are Regulated in New York
Life settlements in New York are governed by New York Insurance Law Article 78, which addresses provider licensing, intermediary requirements, disclosure, advertising, privacy, prohibited practices, and stranger-originated life insurance. The New York State Department of Financial Services oversees compliance and enforcement.
DFS Regulated
Yes
Licensing Required
Yes
Full Disclosure
Required
Rescission Right
15 days post-proceeds
Life Settlement Brokers in New York Must Be Properly Licensed
New York requires authority to act as a life settlement broker under NY Insurance Law §2137. This licensing framework ensures that intermediaries representing policyowners meet the state's standards for competency, disclosure, and conduct before facilitating life settlement transactions.
The New York State Department of Financial Services oversees licensing and ongoing compliance for all life settlement intermediaries operating in the state.
New York Life Settlement Rescission Rights
Under NY Insurance Law §7813, New York provides a policyowner with an unconditional right to rescind a life settlement contract from execution until 15 days after receipt of the life settlement proceeds, subject to statutory repayment requirements.
This is an important distinction: the rescission right does not simply expire a fixed number of days after signing. It extends through 15 days after you actually receive your settlement funds, giving New York policyowners meaningful time to reconsider the transaction even after closing.
What New York Policyholders Should Know
New York regulates life settlements under New York Insurance Law Article 78, with oversight by the Department of Financial Services (DFS).
Life settlement brokers in New York must hold proper authority under NY Insurance Law §2137.
Sellers must receive written disclosure of all offers, broker compensation, and alternatives — including accelerated death benefits.
New York provides an unconditional rescission right through 15 days after receipt of settlement proceeds, per NY Insurance Law §7813.
No statutory minimum face value exists, so policies with lower death benefits may still be eligible depending on other factors.
New York's large senior population — estimated at over 3.3 million residents aged 65 and older — contributes to an active life settlement market.
Typical Settlement Range
Settlement offers often exceed cash surrender value
Actual amounts depend on age, health, policy type, and premiums. Request a free policy review for a personalized assessment.
Who May Qualify for a Life Settlement in New York?
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 New York?
Depending on the specific facts, several types of life insurance policies may potentially qualify for a life settlement in New York:
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 New York?
A term life insurance policy may have settlement value in New York 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.
New York Life Settlement Broker Fees: Flat-Fee vs. Percentage Commission
Traditional brokerage compensation may be percentage-based and varies by broker, transaction, and applicable law. 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. The fee is the fixed dollar amount assigned to that tier. 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
Example: New York Life Settlement With Trust's Flat-Fee Model
This is a hypothetical illustration only — not a guarantee of any specific settlement amount, fee, or net proceeds. The $225,000 settlement shown below is not implied to be typical.
Settlement Offer
$225,000
Trust Flat-Fee
$15,000
Net Before Other Costs/Taxes
$210,000
By comparison, a hypothetical percentage-based broker charging 20% of the same $225,000 settlement would deduct $45,000 — leaving $180,000 before other applicable costs and taxes. The 20% commission rate is used for illustration only and is not implied to be universal. Learn more about true Flat-Fee brokerage
New York Life Settlement Broker vs. Provider: What's the Difference?
Life Settlement Broker
Represents the policyowner in seeking potential offers from life settlement purchasers. In New York, life settlement brokers must hold proper authority under NY Insurance Law §2137 and are required to provide full written disclosure of their compensation and all offers received.
Life Settlement Provider / Buyer
Operates on the purchasing side of the life settlement transaction. Providers are licensed under NY Insurance Law Article 78, 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. By representing the seller — rather than the buyer — Trust seeks competitive offers from a network of institutional providers, presents all bids in writing, and charges a transparent Flat-Fee rather than a percentage commission.
How Selling a Life Insurance Policy Works in New York
Confidential Policy Review
Contact us for a no-obligation review. We evaluate your policy economics and preliminary eligibility, and explain the process and New York-specific requirements.
Authorization and Underwriting
With your permission, we obtain relevant policy information and medical records to help institutional buyers evaluate your case.
Market the Policy
We present your eligible case to multiple licensed institutional life settlement buyers, creating a competitive environment for your policy.
Compare Offers
All available offers are presented to you in writing, with full disclosure of each bid amount, Trust's Flat-Fee, and your estimated net proceeds.
Accept or Reject
You remain free to reject all available offers at any stage. There is no obligation to proceed with a life settlement.
Closing and Transfer
If you accept an offer, we complete closing documents and carrier ownership/beneficiary transfer requirements. New York's rescission right continues through 15 days after receipt of proceeds.
Settlement Proceeds
Funds are distributed through the transaction's closing process. Trust's Flat-Fee is deducted from proceeds — never paid out of pocket.
Serving Policyowners Throughout New York
Trust Life Settlements works with policyowners across New York State — not just the five boroughs. Whether you are in New York City, Long Island, the Hudson Valley, upstate New York, or Western New York, our process is conducted remotely and does not require in-person meetings. We serve policyowners in communities including:
Don't see your area? Contact us — we serve policyowners throughout all 62 New York counties.
New York Life Settlement FAQ
Can I sell my life insurance policy in New York?
Yes. If you own a life insurance policy and meet basic eligibility criteria — typically age 65 or older or with a qualifying health change — you may be able to sell your policy through a life settlement in New York. The transaction is fully regulated under New York Insurance Law Article 78.
Are life settlements legal in New York?
Yes. New York has comprehensive life settlement regulations under Insurance Law Article 78. Both life settlement providers and brokers must be licensed or properly authorized, and full disclosure of all offers and fees is required by law.
Do life settlement brokers need a license in New York?
Yes. New York requires authority to act as a life settlement broker under NY Insurance Law §2137. The New York State Department of Financial Services oversees licensing and compliance for all life settlement intermediaries.
Who qualifies for a life settlement in New York?
Eligibility depends on several factors including the insured's age, health status, policy type, death benefit, and future premium obligations. Most successful settlements involve policyholders aged 65 or older with permanent life insurance. Younger individuals with significant health changes may also qualify. Convertible term policies may be eligible if the conversion privilege supports a settlement.
How much is my life insurance policy worth in New York?
Life settlement values vary based on age, health, policy type, face value, and annual premium costs. Settlement amounts typically range from 10% to 35% of the policy's face value — significantly more than the cash surrender value offered by most insurance carriers. Request a free policy review for a personalized assessment, or use our online estimator for a preliminary indication.
How much does a New York life settlement broker charge?
Trust Life Settlements uses a five-tier Flat-Fee structure based on the settlement offer amount rather than a percentage commission. Fees range from $6,000 to a maximum of $60,000, depending on which tier the settlement amount falls into. This structure is disclosed in writing before you commit and paid from settlement proceeds at closing — never out of pocket.
Can I sell a term life insurance policy in New York?
A term life insurance policy may qualify for a life settlement in New York if it includes a conversion option that allows conversion to permanent coverage. The conversion privilege is what gives the policy value to institutional buyers. Pure term policies without conversion options generally do not qualify.
How long does a life settlement take in New York?
Most New York life settlement transactions close within 90 to 150 days from the initial policy review. The timeline depends on how quickly medical records can be obtained, the complexity of the policy, buyer underwriting timelines, and the closing process. Trust Life Settlements keeps clients informed at every stage.
Can I reject a life settlement offer?
Absolutely. You are under no obligation to accept any offer. All offers are presented to you in writing, and you decide whether to proceed. New York law also provides an unconditional right to rescind a life settlement contract through 15 days after receipt of the settlement proceeds.
Does New York provide a rescission period?
Yes. Under NY Insurance Law §7813, a policyowner has an unconditional right to rescind a life settlement contract from execution through 15 days after receipt of the life settlement proceeds, subject to statutory repayment requirements. This protection extends beyond the signing date and continues until after you receive your settlement funds.
What is the difference between a life settlement broker and provider in New York?
A life settlement provider (or buyer) is on the purchasing side of the transaction — they buy the policy. A life settlement broker represents the policyowner and seeks offers from multiple providers to find competitive pricing. Trust Life Settlements acts as the policyowner's broker and does not purchase policies for its own account.
Are life settlement proceeds taxable in New York?
Life settlement proceeds may be subject to federal income tax. The tax treatment depends on your cost basis (total premiums paid) relative to the settlement amount and the policy's cash surrender value. New York State also imposes income tax, so New York residents should consider both federal and state tax implications. We recommend consulting a qualified tax advisor for guidance specific to your situation.
Have more questions? View our full FAQ or get in touch.
Before You Surrender or Lapse Your Policy, Find Out What It May Be Worth
New York policyowners considering surrendering, lapsing, or materially changing an existing life insurance policy may want to determine whether the policy has value in the secondary market first. Request a confidential policy review from Trust Life Settlements.