Sell Your Life Insurance Policy in Pennsylvania Through a Life Settlement
Trust Life Settlements is an independent Flat-Fee life settlement broker serving eligible Pennsylvania policyowners. We represent the policyowner, 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 Pennsylvania?
Pennsylvania regulates life settlements under the Viatical Settlements Act (Act 107 of 2002), with the Pennsylvania Insurance Department overseeing licensing and compliance. The Commonwealth's large and diverse senior population — and the prevalence of policies purchased through manufacturing careers, professional practices, and estate planning — contribute to an active life settlement market. Pennsylvania's regulatory framework includes a particularly notable consumer protection: the statute expressly provides that a viatical settlement broker represents only the policyowner and owes the policyowner a fiduciary duty.
If you own a life insurance policy in Pennsylvania and are considering surrendering or lapsing it, a life settlement may provide a higher-value alternative. Through a life settlement (also called a viatical settlement under Pennsylvania law), 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.
Pennsylvania's Viatical Settlements Act establishes specific broker licensing requirements, written disclosure obligations, confidentiality protections for health and financial information, and rescission rights of 30 days from the contract and at least 15 calendar days from receipt of proceeds. The Pennsylvania Insurance Department also advises consumers to consider potential tax consequences and possible effects on Medicaid or other government benefits before entering a settlement. As with any life settlement, actual timelines and offers vary based on individual circumstances.
How Life Settlements Are Regulated in Pennsylvania
Life settlements in Pennsylvania are governed by the Pennsylvania Viatical Settlements Act (Act 107 of 2002), which addresses viatical settlement broker and provider licensing, consumer disclosures, transaction conduct, confidentiality requirements, and policyowner protections. The Pennsylvania Insurance Department oversees compliance and enforcement. Pennsylvania uses the statutory term “viatical settlement” for transactions commonly referred to in the market as life settlements.
PA Insurance Dept
Regulated
Broker License
Required
Broker Duty
Fiduciary
Rescission Period
30 days / 15 days
Who Does a Pennsylvania Life Settlement Broker Represent?
Pennsylvania law expressly treats the life settlement broker as the representative of the policyowner. Under the Pennsylvania Viatical Settlements Act, regardless of how the broker is compensated, a viatical settlement broker:
- Represents only the viator (policyowner)
- Owes the policyowner a fiduciary duty
- Must act according to the policyowner's instructions
- Must act in the policyowner's best interest
This statutory fiduciary duty means the broker's legal obligation runs exclusively to the policyowner — not to any buyer, provider, or other party in the transaction. Trust Life Settlements operates on the policyowner side of the transaction and does not purchase policies for its own account.
Why Multiple Life Settlement Offers Matter in Pennsylvania
The Pennsylvania Insurance Department's own consumer guidance specifically encourages policyowners to ask their viatical settlement broker to shop the policy with multiple settlement providers and to review all offers and broker commissions. This guidance reflects the importance of competitive marketing in the secondary market for life insurance.
Consistent with this guidance, Trust Life Settlements markets eligible policies to multiple institutional life settlement buyers, presents all offers to the policyowner in writing, and allows the policyowner to accept or reject any offer at any stage. Working with a single provider may mean seeing only one bid rather than the range of offers available in the market.
Market eligible policies to multiple institutional buyers
Present all offers to the policyowner in writing
Disclose broker compensation transparently
Policyowner decides whether to accept or reject
Pennsylvania Life Settlement Broker Licensing
Pennsylvania requires a Viatical Settlement Broker license to engage in the business of viatical settlements in the Commonwealth, subject to applicable requirements and exemptions. The Pennsylvania Insurance Department currently lists separate license categories:
- Viatical Settlement Broker — Individual
- Viatical Settlement Broker — Business Entity
Viatical settlement providers operating in Pennsylvania must also satisfy separate licensing requirements. The Act addresses licensing, disclosures, prohibited practices, confidentiality of health and financial information, and consumer protections.
Note: Trust Life Settlements' specific Pennsylvania licensing status should be verified through human review before publication. This page does not assert a specific Pennsylvania license number and none should be added without confirmation.
What Pennsylvania Policyowners Should Know
Pennsylvania regulates life settlements under the Viatical Settlements Act (Act 107 of 2002), using the statutory term "viatical settlement" for transactions commonly called life settlements.
The Pennsylvania Insurance Department oversees viatical settlement broker and provider licensing, disclosures, and compliance.
Pennsylvania law expressly provides that a viatical settlement broker represents only the policyowner and owes the policyowner a fiduciary duty, regardless of how the broker is compensated.
The Pennsylvania Insurance Department's consumer guidance encourages policyowners to have their broker shop the policy with multiple settlement providers.
Pennsylvania provides rescission rights of 30 days from the date of the contract and at least 15 calendar days from receipt of settlement proceeds.
Policyowners should consider potential tax consequences, effects on Medicaid or other government benefits, possible creditor implications, and other factors before proceeding.
What Your Policy May Be Worth
Settlement amounts vary by individual factors
Life settlement offers depend on age, health, policy type, death benefit, and future premium obligations. A life settlement is typically more than the cash surrender value your insurer would pay, but there is no guaranteed percentage or offer amount.
Pennsylvania Life Settlement Rescission Rights
Pennsylvania law provides a statutory right to rescind a life settlement contract. The current statute provides an unconditional right to rescind for 30 days from the date of the contract and at least 15 calendar days from receipt of the settlement proceeds, subject to the statute's conditions. This means you may cancel the transaction within either of these time frames, whichever provides the longer protection.
This dual rescission framework provides a meaningful layer of consumer protection that extends beyond the contract signing date and continues after you have received your settlement funds.
What Pennsylvania Policyowners Should Consider Before Selling
A life settlement is a significant financial decision. The Pennsylvania Insurance Department specifically advises consumers to consider several factors before entering a settlement. Pennsylvania policyowners should carefully evaluate:
Whether you still have a continued need for life insurance coverage
The policy's current cash surrender value
Future premium requirements you would otherwise have to pay
The offers actually available for your specific policy
Broker compensation and how it is structured
Possible tax consequences of receiving settlement proceeds
Potential effects on Medicaid or other government benefits
Possible creditor or bankruptcy implications
Alternatives under the existing policy (loans, accelerated death benefits, reduced paid-up options)
Because these effects depend on your individual situation, we strongly recommend consulting a qualified tax advisor, financial professional, insurance advisor, and, where relevant, a benefits or elder-law attorney before making a decision.
Who May Qualify for a Life Settlement in Pennsylvania?
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 Pennsylvania?
Depending on the specific facts, several types of life insurance policies may potentially qualify for a life settlement in Pennsylvania:
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 Pennsylvania?
A term life insurance policy may have settlement value in Pennsylvania 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.
Pennsylvania 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 broker 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: Trust's Flat-Fee Model in Pennsylvania
This is a hypothetical illustration only — not a guarantee of any specific settlement amount, fee, or net proceeds. The $475,000 settlement shown below is not implied to be typical.
Settlement Offer
$475,000
Trust Flat-Fee
$30,000
Net Before Other Costs/Taxes
$445,000
By comparison, a hypothetical percentage-based broker charging 20% of the same $475,000 settlement would deduct $95,000 — leaving $380,000 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
Pennsylvania Life Settlement Broker vs. Provider: What's the Difference?
Life Settlement Broker
Represents the policyowner and shops or negotiates the policy with potential settlement providers. Under Pennsylvania law, the broker owes the policyowner a fiduciary duty and must act in the policyowner's best interest. A broker seeks competitive offers from multiple institutional buyers and presents all offers in writing with full disclosure of compensation.
Life Settlement Provider
Operates on the purchasing side of the transaction and makes or facilitates offers to acquire policies. Providers are separately licensed under the Pennsylvania Viatical Settlements Act. 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. Consistent with Pennsylvania's statutory framework, Trust represents the policyowner — not the buyer — 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.
Medical and Policy Information in a Pennsylvania Life Settlement
Life settlement underwriting may require authorized access to certain types of information to enable institutional buyers to evaluate a policy. This typically includes:
Medical records relevant to life expectancy evaluation
Policy illustrations and in-force details
Insurance carrier records and premium history
Premium payment and cost-basis information
Pennsylvania law provides that health and financial information obtained by settlement licensees is subject to applicable confidentiality and disclosure laws. All information is obtained and used as part of the authorized underwriting and marketing process, with your written authorization. Trust Life Settlements handles the information gathering on your behalf so that institutional buyers can evaluate your policy. If you have questions about what information is required, contact us to discuss the process before authorizing anything.
How to Sell a Life Insurance Policy in Pennsylvania
Confidential Policy Review
Contact us for a no-obligation review. We evaluate your policy economics and preliminary eligibility, and explain the process and Pennsylvania-specific requirements.
Authorization and Underwriting
With your permission, we obtain authorized 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/providers, 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
The policyowner decides whether an offer is acceptable. You remain free to reject all available offers at any stage. There is no obligation to proceed.
Complete Required Documents
Complete applicable Pennsylvania disclosures and settlement documents required under the Viatical Settlements Act.
Transfer and Closing
Process the applicable insurance carrier ownership and beneficiary changes. Pennsylvania provides rescission rights of 30 days from the contract and at least 15 days from receipt of proceeds.
Settlement Proceeds
Complete the applicable closing and escrow process. Trust's Flat-Fee is deducted from proceeds — never paid out of pocket.
Serving Policyowners Throughout Pennsylvania
Trust Life Settlements works with policyowners across the entire Commonwealth of Pennsylvania — from the Philadelphia metro area to the Pittsburgh region, and from the Lehigh Valley to the Poconos. Whether you live in a major metro area or a smaller community, 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 67 Pennsylvania counties.
Pennsylvania Life Settlement FAQ
Can I sell my life insurance policy in Pennsylvania?
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 (called a viatical settlement under Pennsylvania law). The transaction is regulated under the Pennsylvania Viatical Settlements Act.
Are life settlements legal in Pennsylvania?
Yes. Pennsylvania regulates life settlements under the Viatical Settlements Act (Act 107 of 2002). The Pennsylvania Insurance Department oversees licensing and compliance for viatical settlement providers and brokers operating in the Commonwealth.
Why does Pennsylvania call life settlements "viatical settlements"?
Pennsylvania uses the statutory term "viatical settlement" to describe what the market commonly calls a life settlement. The same licensing and consumer protection rules apply regardless of the insured's health status. The term reflects the statutory language, not a limitation to terminal-illness transactions.
Do life settlement brokers need a license in Pennsylvania?
Yes. Pennsylvania requires a Viatical Settlement Broker license to engage in the business of viatical settlements in the Commonwealth. The Pennsylvania Insurance Department lists both Individual and Business Entity license categories. Viatical settlement providers must also satisfy separate licensing requirements.
Who does a Pennsylvania life settlement broker represent?
Under Pennsylvania's Viatical Settlements Act, regardless of how the broker is compensated, a viatical settlement broker represents only the policyowner, owes the policyowner a fiduciary duty, must act according to the policyowner's instructions, and must act in the policyowner's best interest. Trust Life Settlements operates on the policyowner side of the transaction.
Who qualifies for a life settlement in Pennsylvania?
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 Pennsylvania?
Life settlement values vary based on age, health, policy type, face value, and annual premium costs. Settlement amounts depend on individual factors and there is no guaranteed percentage. Request a free policy review for a personalized assessment, or use our online estimator for a preliminary indication.
How much does a Pennsylvania 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 Pennsylvania?
A term life insurance policy may qualify for a life settlement in Pennsylvania 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.
Can my policy be marketed to multiple providers?
Yes. The Pennsylvania Insurance Department's consumer guidance specifically encourages policyowners to have their broker shop the policy with multiple settlement providers. When you work with Trust Life Settlements, your eligible policy is presented to multiple institutional buyers to create a competitive environment.
Can I reject a 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. Pennsylvania also provides rescission rights of 30 days from the contract and at least 15 calendar days from receipt of settlement proceeds.
What rescission rights do Pennsylvania policyowners have?
Pennsylvania law provides an unconditional right to rescind a life settlement contract for 30 days from the date of the contract and at least 15 calendar days from receipt of the settlement proceeds, subject to the statute's conditions. This dual framework provides protection that extends beyond the contract signing date.
Have more questions? View our full FAQ or get in touch.
Before You Surrender or Lapse Your Life Insurance Policy, Find Out What It May Be Worth
Pennsylvania 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.