What Is a Life Settlement?
A life settlement is the legal sale of an existing life insurance policy to a licensed third-party buyer for a lump-sum cash payment. The amount you receive is typically more than the policy's cash surrender value, but less than its face value. Once the sale is complete, the buyer assumes ownership of the policy, takes over premium payments, and receives the death benefit when the insured passes away.
Life settlements are a federally recognized financial transaction and are regulated at the state level. In Maryland, the Maryland Insurance Administration oversees and enforces the applicable rules. This secondary market gives policyholders a legitimate alternative to simply lapsing or surrendering a policy — often recovering significantly more value in the process.
To learn more about how this process works in general, visit our How It Works page.
Is Selling a Life Insurance Policy Legal in Maryland?
Regulated by: Maryland Insurance Administration
Life settlements are legal and regulated in Maryland
The Maryland Insurance Administration regulates life settlements, requiring providers and brokers to be licensed and to adhere to consumer disclosure standards. Maryland's regulatory framework reflects the state's commitment to protecting policyholders while maintaining their ability to access the secondary market for life insurance.
Maryland's proximity to Washington, D.C. and its concentration of government retirees means many residents carry significant life insurance policies as part of long-term financial planning. These policies are often strong candidates for life settlement consideration.
Licensing Requirements in Maryland
Life settlement providers and brokers operating in Maryland must hold valid licenses issued by the Maryland Insurance Administration. The licensing process reviews qualifications and compliance capacity, and licensees are subject to ongoing regulatory oversight.
When working with LifeSettlementEstimate.com, you can be confident that we connect you only with licensed and vetted buyers and brokers who meet Maryland's regulatory requirements. Verifying licensure is a critical first step before entering into any life settlement transaction — and one we handle on your behalf.
Waiting Period Rules in Maryland
Maryland requires that a life insurance policy be in force for at least two years before a policyholder may enter into a life settlement transaction. Exceptions apply for terminal illness, chronic illness, and other qualifying circumstances.
Consumer Protections for Maryland Residents
Maryland's life settlement regulations include mandatory written disclosures to sellers and a rescission period following contract signing. These protections are designed to ensure that Maryland policyholders can make fully informed, unhurried decisions.
What Your Policy Might Be Worth in Maryland
Life settlement offers vary widely based on individual circumstances. As a general industry benchmark, policyholders typically receive offers ranging from 10% to 30% of the policy's face value — and in some cases more, depending on the insured's age, health status, policy type, and premium obligations.
For example, a $500,000 policy in Maryland could potentially generate a life settlement offer between $50,000 and $150,000 — compared to far less (or nothing) if the policy were simply lapsed or surrendered. These are industry-typical ranges and not guarantees. Your actual offer will depend entirely on your specific circumstances.
Important Disclosure
The ranges provided are general industry estimates and educational in nature. No specific payout is guaranteed. Actual offers depend on your policy details, health information, and buyer demand at the time of transaction. LifeSettlementEstimate.com does not guarantee any specific offer amount.
The best way to get an accurate picture of your policy's potential value is to start with a free, no-obligation estimate.
Tax Considerations in Maryland
Maryland has a state income tax as well as a county income tax in some jurisdictions. Life settlement proceeds above the policy's adjusted cost basis may be subject to these taxes in addition to federal income taxes. Professional tax advice is strongly recommended.
Tax Disclaimer
The above is general educational information and does not constitute tax advice. Tax laws are complex and subject to change. Please consult a licensed CPA or tax attorney before completing any life settlement transaction to understand the full tax implications of your specific situation.
How the Life Settlement Process Works
Get a Free Estimate
Use LifeSettlementEstimate.com to receive a preliminary valuation of your policy. There's no personal information required beyond the basics, and no obligation to proceed.
Submit Policy Details
If you decide to move forward, you'll submit your policy information and complete a brief medical authorization. Our team gathers records and prepares your file for buyers.
Receive Competitive Offers
Your policy is presented to our network of 50+ licensed buyers in Maryland and across the country. Multiple offers are collected and presented to you for comparison.
Accept or Decline
You are never obligated to accept any offer. If you accept, the closing paperwork is handled, and funds are typically received within 30–60 days of final approval.
See our full How It Works guide for a complete walkthrough of the life settlement process.
Why Use LifeSettlementEstimate.com in Maryland?
LifeSettlementEstimate.com was built around one core principle: policyholders deserve transparent, unbiased information before making a major financial decision. We are an educational-first platform, not a high-pressure sales operation.
For residents of Maryland in cities like Baltimore, Columbia, and beyond, our platform offers a compliance-first approach — connecting sellers with licensed, vetted buyers who operate within Maryland's regulatory framework.
Free Estimate
No cost to get your initial policy valuation
No Obligation
You decide if and when to proceed
50+ Vetted Buyers
Competitive offers from licensed MD buyers
Compliance-First
HIPAA-compliant, fully transparent process
A Maryland Resident's Story
Bernard Holloway, 75
Columbia, Maryland
"Bernard, a retired federal employee from Columbia, had maintained a $500,000 whole life insurance policy as a central part of his federal retirement plan. After reviewing his overall retirement income with a financial advisor, he realized the policy's original estate planning purpose had been largely addressed through other means. The advisor suggested exploring a life settlement, and Bernard used LifeSettlementEstimate.com to get an initial estimate."
This is a fictional illustrative scenario. It does not represent an actual client or guaranteed outcome.
Frequently Asked Questions — Maryland
Get a Free Life Settlement Estimate in Maryland
Ready to find out what your policy may be worth? Our free estimate takes just minutes — with no obligation, no pressure, and no cost. Join Baltimore and Germantown residents who have already used LifeSettlementEstimate.com to make informed decisions about their life insurance.
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