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 Montana, the Montana Office of the Commissioner of Securities and 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 Montana?
Regulated by: Montana Office of the Commissioner of Securities and Insurance
Life settlements are legal and regulated in Montana
Montana's Office of the Commissioner of Securities and Insurance regulates life settlements in the state, overseeing provider and broker licensing and consumer disclosure standards. Montana's regulatory framework ensures that policyholders have access to a fair and transparent secondary market.
Montana's relatively small population and dispersed communities mean that online and remote life settlement platforms are particularly valuable for residents in rural and mountain areas.
Licensing Requirements in Montana
Life settlement providers and brokers must be licensed by Montana's Office of the Commissioner of Securities and Insurance to operate in the state. Licensing involves qualification and compliance standards that must be maintained throughout the license period.
When working with LifeSettlementEstimate.com, you can be confident that we connect you only with licensed and vetted buyers and brokers who meet Montana'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 Montana
Montana requires a two-year waiting period from the date of policy issuance before a policyholder may enter into a life settlement. Exceptions apply for terminal illness, chronic illness, and other qualifying circumstances.
Consumer Protections for Montana Residents
Montana requires providers to furnish sellers with written disclosures before any life settlement is completed. Sellers have a rescission period after signing a contract during which they may cancel without financial penalty.
What Your Policy Might Be Worth in Montana
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 Montana 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 Montana
Montana has a state income tax, and life settlement proceeds above the policy's adjusted cost basis may be subject to state taxation in addition to federal income taxes. Consulting a qualified tax professional is 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 Montana 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 Montana?
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 Montana in cities like Billings, Missoula, and beyond, our platform offers a compliance-first approach — connecting sellers with licensed, vetted buyers who operate within Montana'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 MT buyers
Compliance-First
HIPAA-compliant, fully transparent process
A Montana Resident's Story
Earl Lindquist, 70
Missoula, Montana
"Earl, a retired forest service officer from Missoula, had a $250,000 whole life insurance policy accumulated during his federal career. Now in retirement, he found himself paying premiums that no longer aligned with his simplified estate plan. A retirement planning workshop in Missoula introduced him to life settlements as an option, and Earl visited LifeSettlementEstimate.com to explore what his policy might be worth."
This is a fictional illustrative scenario. It does not represent an actual client or guaranteed outcome.
Frequently Asked Questions — Montana
Get a Free Life Settlement Estimate in Montana
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 Billings and Great Falls residents who have already used LifeSettlementEstimate.com to make informed decisions about their life insurance.
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