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

You may have bought life insurance years ago for loved ones protection, a business, or estate planning. Over time, your needs change. Premium payments can feel heavy, the original purpose of insurance coverage may no longer matter, or cash today is simply more useful than a future death benefit.

In Nevada, you can sell a life insurance policy through a regulated life settlement or viatical settlement. The state has a detailed statute that defines who can buy these policies, how they must be licensed, how long you have to wait before selling, and how long you have to change your mind after a sale. This can be a more attractive alternative than letting your policy lapse and/or just getting your cash surrender value.

Life settlements are legal in Nevada under state law. If your policy qualifies, a settlement can often be worth significantly more than surrendering the policy back to the carrier.

Is It Legal to Sell My Life Insurance in Nevada?

Yes. Nevada regulates life and viatical settlements under Chapter 688C of the Nevada Revised Statutes. That chapter defines viatical settlement providers and brokers, sets licensing rules, governs how contracts must be structured, and lays out the basic consumer protections for Nevada residents.

Only licensed providers and brokers are allowed to negotiate or purchase policies from Nevada policyowners. If a company does not hold the right license in Nevada, it should not be part of your transaction.

How Long You Must Wait Before Selling a Policy in Nevada

Nevada sets a clear rule on timing. As a general matter, you may not enter into a settlement within five years after the policy was issued.

There are exceptions. The statute allows a policyowner to sell earlier than five years if certain events happen after the policy was issued and those events are documented. Examples include:

• Serious health changes such as terminal or chronic illness
• Retirement from full time work
• Divorce
• Death of a spouse or beneficiary
• Disability that prevents full time work
• Bankruptcy
• A major drop in income that makes premiums unmanageable
• Certain conversions from group life insurance coverage where you have already been covered for a long period of time

If your policy is younger than five years and none of those events applies, you generally cannot complete a settlement yet. If the policy is older than five years, or one of those events can be documented, negotiation is possible.

Who Buys Life Insurance Policies in Nevada?

The end buyers behind this market are almost always institutional investors. That includes settlement funds, private equity structures, and other vehicles that treat policies as financial assets.

You do not sell the policy directly to those institutions. Nevada requires that all life settlement transactions run through a licensed viatical settlement provider. A broker, if involved, represents you and takes the policy to multiple licensed providers to see who will pay the most.

You receive a lump sum at closing. The provider becomes the new owner of the policy, takes over the premiums, and collects the death benefit when the insured passes away.

How Much Is My Policy Worth in Nevada?

Pricing is driven by basic economics: the age of the insured, current health and expected longevity, type of policy (term life insurance policies can price differently than permanent life- whole life insurance policies or universal life) and guarantees, face amount, and future premiums needed to keep the policy in force.

Older insureds, meaningful impairments, stable universal or whole life contracts, and a manageable premium load all push value up. The actual number only appears after a licensed provider has seen your medical records and policy information.

Minimum Payout Standards for Viatical Settlements

Nevada sets minimum payout requirements for chronically or terminally ill policyowners. The minimum amount that must be paid depends on the insured's life expectancy:

• Less than 6 months:80% of the net death benefit
• 6 to 12 months:70% of the net death benefit
• 12 to 18 months:65% of the net death benefit
• 18 to 25 months:60% of the net death benefit
• 25 months or more:The greater of the cash surrender value or the accelerated death benefit at the time of the settlement

Beyond these minimums, settlements must not provide payments that are unjust or unreasonable. When evaluating fairness, regulators consider factors including the face value, any outstanding loans, life expectancy, the insured's age, future premium costs, cash surrender or accelerated death benefit values, acquisition costs, commissions and fees, interest payments, carrier ratings, prevailing discount rates, contestability status, and any other charges related to the transaction.

Nevada Consumer Protections

Nevada's law builds in several protections for policyowners:

• Providers and brokers must be licensed
• They must use approved forms and written disclosures
• They must handle funds correctly using escrow or a similar structure
• They must explain compensation and terms before contracts are signed

These rules are designed to keep negotiations inside a regulated framework rather than a private, unstructured side deal.

Nevada Rescission Period

Nevada defines a rescission period and ties it to both the day the contract is signed and the day you receive the proceeds.

You have the right to rescind for the shorter of these two periods:

• Sixty days after all parties have signed the settlement contract, or
• Thirty days after you receive the settlement proceeds

If you cancel within that window, the transaction is unwound under the rules in Nevada law, which includes returning the funds and restoring the policy. If the insured dies during the rescission period, the statutes also govern how the contract is treated and how money flows back.

Practically, this means you have a genuine second chance to walk away if something does not feel right after closing.

How the Process Works in Nevada

Most Nevada settlements take about two to three months from first discussion to money in your account.

Next Steps for Nevada Policyowners

If you're considering selling your life insurance policy in Nevada, here's how to move forward:

1. Check when your policy was originally issued and whether the five year rule or an exception applies
2. Request an initial valuation from a licensed Nevada provider or a broker who works with multiple providers
3. Gather recent policy statements and be ready to sign medical record authorizations
4. Discuss the federal tax impact with a CPA before closing
5. Make your decision with the rescission period and timing clearly in mind

Your policy is not just a bill. It is an asset. Treating it that way is the first step to getting real value out of it.

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.