Sell Your Life Insurance Policy in Georgia | 2026 Life Settlement Guide

You bought life insurance for a reason. Family protection, a buy sell agreement, estate planning, or just peace of mind. Years later, the picture may look different. Premiums feel heavy, the original need is gone, or cash payout today is more valuable to you than a future death benefit.

Georgia has a dedicated Life Settlements Act. It does not ban selling a policy. It regulates the process. That means licensing for providers and brokers, mandatory written disclosures, a two year timing rule tied to policy issue date, escrow rules, and a clear rescission period.

If your policy qualifies, a Georgia life settlement can often pay significantly more than surrendering the policy back to the life insurance company.

Is It Legal to Sell My Life Insurance in Georgia?

Yes. The state of Georgia regulates life settlements under state law. Only licensed providers and registered life settlement brokers may transact with Georgia residents.

The law requires:

• Only licensed providers and registered life settlement brokers may transact with Georgia residents
• Forms, contracts, and disclosure documents must be filed with and approved by the Commissioner
• Violations can be treated as unfair trade practices with civil and criminal penalties

If someone approaches you about buying your policy and they are not licensed in Georgia, that buyer is not permitted to transact with you.

Who Buys Life Insurance Policies in Georgia?

The end buyers are usually institutional investors:

• Dedicated life settlement funds
• Investment partnerships and similar vehicles
• In some cases, pension or specialty fixed income investors

You do not deal with those institutions directly. You negotiate with a licensed Georgia life settlement provider. You can also work with a life settlement broker who represents you and shops your policy across multiple providers for competing offers.

Safety Concerns And The Hitman Question

Every once in a while someone asks the blunt question. If I sell my policy to a fund that gets paid when I die, does that put a target on my back?

It is a natural worry, but it does not line up with how this market actually works. For a deeper look at why this concern is unfounded, see our article on the "hitman" question.

Real buyers are regulated institutions. Think pension funds, asset managers, specialist life settlement funds, and family offices that live under compliance, audits and regulators. They buy large pools of policies, not one or two bets on a single person. Your policy is a tiny piece of a diversified portfolio. No one is sitting in a room watching your file and waiting for news.

More importantly, crime would completely destroy the investment. If someone were foolish enough to try something like that, the claim would be frozen, law enforcement would be involved, and the policy would become radioactive. The buyer would lose their capital, their license and their business, and the people involved would be looking at serious prison time. That is the exact opposite of what professional investors want.

There are plenty of real risks in life. Selling a policy through a regulated life settlement process does not meaningfully change your exposure to violent crime. The buyer wants a clean, boring actuarial outcome, not drama. If this were a real world problem you would see patterns of cases and headlines over the last few decades. You do not, because serious firms do not play games with that line.

If this worry is on your mind, it is better to treat it as something to acknowledge and then put aside, not as a deciding factor in whether to explore a settlement.

Retained Death Benefit And What Happens If The Buyer Stops Paying

In some transactions you do not sell the entire policy. Instead, you take part in cash today and keep a slice of the future death benefit. That structure is usually called a retained death benefit. The buyer agrees to carry the full premium load and, when the insured passes away, your family gets the retained portion without ever having to write another check.

The obvious follow up question is what happens if the fund or buyer stops paying premiums in ten years. If the policy lapses, your retained benefit disappears with it. That is a real risk, and it belongs in the contract, not swept under the rug.

Well structured deals handle this with clear protections. Common approaches include giving you the right to step in and assume the policy if premiums are not paid on time, or if the fund winds down or fails. In practice that can mean a clause that says if premiums are not funded by a certain date, ownership can revert or you can elect to take over and keep the policy in force by paying premiums yourself. Serious buyers also use professional servicing companies and advance notice requirements so you, your adviser, or your lawyer get notified long before insurance coverage is at risk.

The point is that you do not have to simply hope the fund behaves. You can ask, in plain language, what happens if premiums are not paid, when you are notified, and what your rights are to step back in. If you are doing any kind of retained death benefit, those answers should be written into the settlement documents before you sign, so your family is not relying on a handshake twenty years from now.

How Much Is My Policy Worth in Georgia?

Georgia law does not set a fixed price formula. The market looks at:

• Age and health status of the insured
• Life expectancy estimates
• Type of policy and guarantees (a term life insurance policy is different than universal life or whole life insurance)
• Face value
• Premium payment schedule and lapse risk
• How much cash surrender value you have in your policy

Example Georgia Settlement Scenarios

Illustrative examples; may not reflect the value of your policy.

Example 1

• $2,000,000 universal life policy
• Insured: 78-year-old male with moderate congestive heart failure and diabetes
• Surrender value: $15,200
• Settlement offer: $320,000

Example 2

• $1,200,000 whole life policy
• Insured: 84-year-old female with history of stroke and limited mobility
• Surrender value: $38,000
• Settlement offer: $230,000

Example 3

• $400,000 convertible term policy
• Insured: 72-year-old male, cancer survivor, converted in time
• Surrender value: $0
• Settlement offer: $112,000

Georgia's Two Year Waiting Rule

Georgia does not allow someone to immediately take out a policy and flip it. The state has a two year waiting rule.

In plain English:

• You generally may not enter into a life settlement contract during the first two years after the policy was issued
• There are specific exceptions if certain events happen after issue and you can document them

Exceptions to the Two Year Rule

• Terminal or chronic illness of the owner or insured
• Sale of a closely held business interest under an existing agreement
• Death of a spouse
• Divorce
• Retirement from full time employment
• Physical or mental disability
• Bankruptcy filing

Consumer Protections in Georgia

Georgia requires specific disclosures before a life settlement contract is signed. The provider or broker must give you a written disclosure statement that includes:

• Alternatives to selling the policy
• Possible tax consequences
• Possible effects on eligibility for public assistance programs
• That the proceeds will be taxable at the federal and possibly state level
• That the buyer will become the new owner and beneficiary

Rescission Rights and Escrow in Georgia

Georgia gives you the right to rescind on or before fifteen days after the date the contract is executed by all parties. To rescind, you must return the proceeds and any premiums, loans, and loan interest paid by the provider.

If the insured dies during the rescission period, the contract is treated as rescinded if the owner returns the proceeds.

Georgia also requires escrow handling:

• Within three business days after receiving signed transfer documents, the provider must deposit proceeds into escrow
• Within three business days after the insurer acknowledges the ownership transfer, the escrow agent must pay you

How the Life Settlement Process Works in Georgia

A typical Georgia life settlement follows this sequence:

1. Initial Screening- Share basic policy and health information for an initial eligibility check.
2. Document Collection- Sign authorizations to obtain medical records and policy verification.
3. Underwriting- Independent underwriters assess life expectancy based on complete medical history.
4. Offer Presentation- Written offers are presented with all required Georgia disclosures.
5. Closing- Sign the contract and transfer forms. Provider funds escrow within three business days.
6. Rescission Window- Your fifteen day rescission clock runs from the date all parties executed the contract.

Most Georgia cases take around sixty to ninety days from first conversation to money in your bank account.

Next Steps for Georgia Policyowners

Check the policy issue date and see whether the two year rule applies

Gather recent policy statements and any available medical summaries

Speak with a licensed Georgia life settlement provider or broker and request an initial valuation

Review all written disclosures, especially around alternatives and broker pay

Pay attention to the rescission language and dates in the contract

A life insurance policy is an asset. In Georgia, the law is set up so that if you decide to sell it, you do it with eyes open and a real sense of your rights.

Disclaimer: The information provided in this article is for general informational purposes only and does not constitute legal, financial, or professional advice. Life settlement regulations vary by state, and this content should not be relied upon as a substitute for consultation with a licensed professional. Please consult with a qualified attorney, financial advisor, or licensed life settlement broker before making any decisions regarding the sale of a life insurance policy.