Sell Your Life Insurance Policy in Utah | 2026 Viatical and Life Settlements Guide

A life insurance policy begins as a cushion for your loved ones. In the beginning, it is all about life insurance coverage. Years later the situation changes. Premium payments may feel too heavy or the original purpose of the policy no longer fits. Long term care starts creeping up. Utah law allows you to sell your policy through a viatical or life settlement as long as the transaction goes through a licensed provider. This basically means that the owner and beneficiary of the life insurance policy is changed (to the buying entity), and the original insured generally receives a one-time lump su m payout. The buyer assumes the insurance premium payments, and receives the death benefit once the insured passes away.

These settlements are regulated under Utah's Viatical Settlements Act in Title 31A Chapter 36. The law sets the rules for licensing, waiting periods, disclosures, rescission and escrow so the process is predictable and fair.

Is It Legal to Sell My Life Insurance in Utah?

Yes. The state of Utah authorizes selling life insurance policies through the Viatical Settlements Act. Only licensed viatical settlement providers and licensed viatical settlement brokers may negotiate or complete these life settlement transactions for Utah residents.

Licensing Requirements in Utah

A viatical settlement provider is the party that purchases the policy. The life settlement provider must be licensed by the UtahInsurance Department and must use contract forms that are filed and approved.

A viatical settlement broker represents the policyowner and negotiates with providers on the owner's behalf. Life settlement brokers must hold the appropriate producer license and comply with Utah's disclosure rules and fiduciary duties.

How Much Is My Policy Worth in Utah?

Utah does not dictate pricing. Value is based on your age, health, estimated life expectancy, the type of policy you own and the level of premiums required to keep it in force.

To make the numbers concrete here are sample scenarios:

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

Example 1

• One million eight hundred thousand dollar universal life policy
• Insured age seventy nine with stable congestive heart failure
• Cash Surrender value: fourteen thousand
• Settlement offer: two hundred eighty five thousand

Example 2

• One million dollar whole life policy
• Insured age eighty four with early cognitive decline
• Surrender value: thirty six thousand
• Settlement offer: one hundred ninety thousand

Example 3

• Four hundred thousand dollar convertible term life insurance policy
• Insured age seventy two cancer survivor converted within the allowed period
• Surrender value: zero
• Settlement offer: one hundred twenty thousand

Utah's Two Year Waiting Rule

Utah requires that a life insurance policy be in force for at least two years before it can be sold through a viatical or life settlement.

There are exceptions if the owner can document certain life changes after the policy was issued including divorce, death of a spouse, retirement, disability, bankruptcy or diagnosis of a chronic or terminal illness.

Consumer Protections

Utah limits how often the provider or broker can contact the insured for health status updates after the sale. If life expectancy is one year or more contact may occur no more than once every three months. If life expectancy is less than one year contact may occur once per month.

Utah Rescission Period

Utah gives the owner a clear right to rescind. You may rescind the settlement within fifteen calendar days after you receive the settlement proceeds. To rescind you must repay all proceeds and any premiums or loan amounts the provider paid during that period. If the insured dies during the rescission window the settlement is treated as rescinded if repayment is made within sixty days of death.

Escrow and Payment Rules

Utah sets strict escrow procedures. Once the owner sends executed transfer documents to the independent escrow agent the provider must deposit settlement proceeds into escrow within three business days. The escrow agent may release funds only after the insurer confirms the transfer of ownership and beneficiary rights. Once the insurer confirms that transfer the provider must direct escrow to pay the owner within three business days. If proceeds are not delivered on time the settlement contract is voidable until payment is made and accepted.

How the Viatical and Life Settlement Process Works in Utah

1. Initial Review- A licensed provider or broker reviews your policy and confirms whether the two year waiting rule has been satisfied.
2. Authorizations and Records- You sign authorizations allowing the provider to gather medical history and policy documentation.
3. Underwriting and Pricing- Underwriting begins and the provider models the value of the policy based on premiums, life insurance company strength and projected life expectancy.
4. Offers and Disclosures- You receive written offers along with all required disclosures including broker compensation.
5. Signing and Escrow- You sign the contract and the provider funds escrow. The insurer processes the ownership and beneficiary change.
6. Rescission Window- Your rescission clock begins once proceeds are received.

Most Utah cases take sixty to ninety days depending on how quickly medical records and insurer verifications come back.

Next Steps for Utah Policyowners

→Confirm whether your policy meets the two year waiting requirement or qualifies for an exception

→Gather recent policy statements and basic medical summaries

→Contact a licensed Utah viatical settlement provider or broker for an initial valuation

→Review all written disclosures carefully including broker compensation

→Understand your rescission rights before signing any contract

Your policy is an asset. Utah's Viatical Settlements Act exists to make sure you understand the terms before moving forward.

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.