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 Massachusetts, the Massachusetts Division of Insurance 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 Massachusetts?
Regulated by: Massachusetts Division of Insurance
Life settlements are legal and regulated in Massachusetts
The Massachusetts Division of Insurance regulates life settlements in the state under a framework designed to protect consumers and ensure market integrity. Massachusetts requires licensing of providers and brokers, mandates pre-transaction disclosures, and provides sellers with meaningful consumer protections throughout the process.
Boston's concentration of financial institutions and wealth management firms means that many Massachusetts residents have access to sophisticated advisors who are increasingly incorporating life settlement evaluations into retirement and estate planning discussions.
Licensing Requirements in Massachusetts
Life settlement providers and brokers must hold licenses issued by the Massachusetts Division of Insurance. Licensing requirements are robust and include ongoing compliance standards that licensees must maintain.
When working with LifeSettlementEstimate.com, you can be confident that we connect you only with licensed and vetted buyers and brokers who meet Massachusetts'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 Massachusetts
Massachusetts requires that a life insurance policy be in force for a minimum of two years from the date of issuance before it can be used in a life settlement. Exceptions are recognized for terminal illness, chronic illness, and other qualifying events.
Consumer Protections for Massachusetts Residents
Massachusetts mandates written pre-transaction disclosures to sellers and provides a rescission period following the signing of a life settlement contract. These consumer protections reflect Massachusetts' general commitment to strong regulatory oversight in the financial services sector.
What Your Policy Might Be Worth in Massachusetts
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 Massachusetts 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 Massachusetts
Massachusetts has a flat state income tax rate that applies to most categories of income. Life settlement proceeds above the policy's adjusted cost basis may be subject to Massachusetts state income tax in addition to federal income taxes.
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 Massachusetts 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 Massachusetts?
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 Massachusetts in cities like Boston, Worcester, and beyond, our platform offers a compliance-first approach — connecting sellers with licensed, vetted buyers who operate within Massachusetts'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 MA buyers
Compliance-First
HIPAA-compliant, fully transparent process
A Massachusetts Resident's Story
Kathleen Murphy, 74
Boston, Massachusetts
"Kathleen, a retired professor from the Boston area, had a $700,000 universal life insurance policy she had carried for decades as part of her retirement and estate planning strategy. After reviewing her finances with an estate attorney, she began questioning whether the premiums were still the best use of her assets. Her attorney mentioned life settlements, and Kathleen visited LifeSettlementEstimate.com to explore what her policy might be worth before engaging a licensed broker."
This is a fictional illustrative scenario. It does not represent an actual client or guaranteed outcome.
Frequently Asked Questions — Massachusetts
Get a Free Life Settlement Estimate in Massachusetts
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 Boston and Springfield residents who have already used LifeSettlementEstimate.com to make informed decisions about their life insurance.
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