Sell Your Life Insurance Policy in Texas Through a Life Settlement
Trust Life Settlements is an independent Flat-Fee life settlement broker serving eligible Texas 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 Texas?
Texas regulates life settlements under Insurance Code Chapter 1111A, with the Texas Department of Insurance overseeing licensing and compliance. The state's large and diverse senior population — and the prevalence of policies purchased through energy-sector careers, professional practices, ranching operations, and estate planning — contribute to an active life settlement market. Texas law includes a particularly notable consumer protection: it expressly provides that a life settlement broker negotiating a settlement represents only the policyowner and owes the policyowner a fiduciary duty.
If you own a life insurance policy in Texas 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.
Texas's regulatory framework includes specific broker licensing and registration requirements, written disclosure obligations, and a 15-day rescission period. The Texas Department of Insurance also warns that life settlement proceeds may affect eligibility for Medicaid or other government programs and may have creditor or bankruptcy implications. As with any life settlement, actual timelines and offers vary based on individual circumstances.
How Life Settlements Are Regulated in Texas
Life settlements in Texas are governed by Texas Insurance Code Chapter 1111A, which addresses provider and broker licensing, disclosure, advertising, prohibited practices, and policyowner protections. The Texas Department of Insurance oversees compliance and enforcement, with related rules found in Title 28 of the Texas Administrative Code.
TDI Regulated
Yes
Licensing Required
Yes
Fiduciary Duty
Required
Rescission Period
15 days
Who Does a Texas Life Settlement Broker Represent?
Texas law is unusually clear on this point. Under Texas Insurance Code §1111A.002, a life settlement broker who negotiates a life settlement on behalf of an owner represents only the owner — not the buyer, and not an insurance company. That same provision states that the broker owes a fiduciary duty to the owner, must act according to the owner's instructions, and must act in the owner's best interest.
In plain language: a Texas life settlement broker's legal obligation runs to you, the policyowner. This is a meaningful distinction from a buyer or provider, whose interest is in acquiring your policy. Trust Life Settlements operates squarely on the policyowner's side of the transaction — we represent the owner, seek competitive offers from a network of institutional buyers, and present every offer in writing so you can decide what is right for you.
Texas Life Settlement Broker Licensing
Texas regulates who may act as a life settlement broker. Persons acting as life settlement brokers must satisfy the applicable licensing and registration requirements administered by the Texas Department of Insurance. These requirements are intended to ensure that intermediaries representing policyowners meet the state's standards for disclosure and conduct before facilitating a life settlement.
Texas law also contains circumstances under which certain qualifying life insurance agents may operate as life settlement brokers after satisfying applicable notification and licensing requirements. The specifics depend on the person's existing licensure, how long it has been held, and the notifications filed with the Department. This is a nuanced area of the statute and should not be oversimplified — the exact pathway varies by individual circumstances.
Note: Trust Life Settlements' specific Texas license and registration details should be verified through human review before publication. This page does not assert a specific Texas license number and none should be added without confirmation.
What Texas Policyholders Should Know
Texas regulates life settlements under Texas Insurance Code Chapter 1111A, with oversight by the Texas Department of Insurance.
Texas law expressly provides that a life settlement broker negotiating a settlement represents the policyowner and owes the policyowner a fiduciary duty (TIC §1111A.002).
Life settlement brokers must satisfy applicable Texas licensing and registration requirements through the Texas Department of Insurance.
Sellers must receive written disclosure of all offers, broker compensation, and alternatives before any commitment.
A 15-day rescission period applies after signing a life settlement contract.
Texas policyowners should consider potential effects on means-tested government benefits, tax consequences, and other factors before proceeding.
What Your Policy May Be Worth
Settlement amounts can vary significantly
Per Texas Department of Insurance guidance, life settlement offers depend on individual factors such as 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.
What Texas Policyowners Should Consider Before Selling a Life Insurance Policy
A life settlement is a significant financial decision. The Texas Department of Insurance encourages policyowners to weigh their options carefully. Before proceeding, it can be helpful to consider the following:
The offers actually available for your specific policy
The policy's current cash surrender value
Future premiums you would otherwise have to pay
Whether you still have a continued need for coverage
Alternatives such as policy loans, accelerated death benefits, or reduced paid-up options
Possible tax consequences of receiving settlement proceeds
Effects on eligibility for means-tested benefits such as Medicaid
Transaction costs and how broker compensation is structured
The Texas Department of Insurance specifically warns that receiving a lump sum from a life settlement may affect eligibility for government benefits and may have creditor or bankruptcy implications. Because these effects depend on your individual situation, we strongly recommend consulting a qualified tax advisor, financial professional, and, where relevant, a benefits or elder-law attorney before making a decision.
Who May Qualify for a Life Settlement in Texas?
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 Texas?
Depending on the specific facts, several types of life insurance policies may potentially qualify for a life settlement in Texas:
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 Texas?
A term life insurance policy may have settlement value in Texas 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.
Texas 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: Texas 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 $400,000 settlement shown below is not implied to be typical.
Settlement Offer
$400,000
Trust Flat-Fee
$30,000
Net Before Other Costs/Taxes
$370,000
By comparison, a hypothetical percentage-based broker charging 20% of the same $400,000 settlement would deduct $80,000 — leaving $320,000 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
Texas Life Settlement Broker vs. Provider: What's the Difference?
Life Settlement Broker
Represents the policyowner in seeking potential offers from life settlement purchasers. In Texas, a broker negotiating a settlement represents only the owner and owes the owner a fiduciary duty under TIC §1111A.002 — meaning the broker must act according to the owner's instructions and in the owner's best interest, with full written disclosure of compensation and all offers received.
Life Settlement Provider / Buyer
Operates on the purchasing side of the life settlement transaction. Providers are licensed under Texas Insurance Code Chapter 1111A, 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. Consistent with Texas's statutory framework, Trust represents the owner — 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.
How to Sell a Life Insurance Policy in Texas
Confidential Policy Review
Contact us for a no-obligation review. We evaluate your policy economics and preliminary eligibility, and explain the process and Texas-specific requirements — including the broker's fiduciary duty to you.
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.
Review Available 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
If you accept an offer, we complete closing documents and carrier ownership/beneficiary transfer requirements. Texas provides a 15-day rescission period after signing a life settlement contract.
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 Texas
Trust Life Settlements works with policyowners across the entire state of Texas — from the Gulf Coast to the Panhandle, and from the Hill Country to the Rio Grande Valley. 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 254 Texas counties.
Texas Life Settlement FAQ
Can I sell my life insurance policy in Texas?
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 Texas. The transaction is regulated under Texas Insurance Code Chapter 1111A.
Are life settlements legal in Texas?
Yes. Texas regulates life settlements under Insurance Code Chapter 1111A. The Texas Department of Insurance oversees licensing and compliance for life settlement providers and brokers operating in the state.
Are life settlement brokers regulated in Texas?
Yes. Texas regulates life settlement brokers through the Texas Department of Insurance. Persons acting as life settlement brokers must satisfy applicable Texas licensing and registration requirements. Texas law also establishes that a negotiating broker represents the policyowner and owes a fiduciary duty to the owner.
Who does a Texas life settlement broker represent?
Under Texas Insurance Code §1111A.002, a life settlement broker negotiating a settlement represents only the policyowner, owes the owner a fiduciary duty, must act according to the owner's instructions, and must act in the owner's best interest. Trust Life Settlements operates on the policyowner side of the transaction.
Who qualifies for a life settlement in Texas?
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 Texas?
Life settlement values vary based on age, health, policy type, face value, and annual premium costs. Settlement amounts can vary significantly — buyers consider factors including life expectancy and premiums. Request a free policy review for a personalized assessment, or use our online estimator for a preliminary indication.
How much does a Texas 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 Texas?
A term life insurance policy may qualify for a life settlement in Texas 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 presented to multiple life settlement buyers?
Yes. When you work with Trust Life Settlements, your eligible policy is presented to multiple licensed institutional buyers to create a competitive environment. All offers received are presented to you in writing so you can compare them before making a decision.
How long does a Texas life settlement take?
Most Texas life settlement transactions close within 60 to 120 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. Texas also provides a 15-day rescission period after signing a life settlement contract.
What is the difference between a Texas life settlement broker and provider?
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. Under Texas law, a negotiating broker represents only the owner and owes the owner a fiduciary duty. Trust Life Settlements acts as the policyowner's broker and does not purchase policies for its own account.
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
Texas 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 — a broker that represents you.