July 9, 2026

Your Clients Could Receive Nearly 9x More Than Their Insurer’s Surrender Offer

New market data published by Life Insurance Settlement Association (LISA) reveals a widening gap between what insurance carriers typically pay when a policy is surrendered and what the life settlement market may offer. Despite this fact, many financial advisors and their clients remain unaware that this option to sell a policy exists.

For senior clients whose retirement plans, healthcare needs, or financial priorities have changed, understanding this opportunity could unlock substantial liquidity rather than leaving potential value on the table—creating a value-add opportunity for both advisors and their clients.

Two Very Different Outcomes

Surrender value vs life settlement payout avg

When clients no longer need or want their life insurance policy, surrendering it to the carrier is often viewed as the only option. However, the secondary market of a life settlement can produce dramatically different results.

The difference can be substantial: eligible policies, on average, were worth nearly 9x more than the average insurer surrender value in 2025 (LISA, 2026).

At the same time, insurer surrender values continue to decline. The average insurer surrender payout declined 27%—from $33,493 in 2024 to $24,360 in 2025 (LISA, 2026). This trend reinforces the importance of evaluating all available options before surrendering an unwanted or unneeded policy.

Help Clients Find Hidden Value — While Creating a New Revenue Opportunity

Many clients own life insurance policies that no longer serve their original purpose—but continue paying premiums because they don’t realize there may be another option. For eligible clients, a life settlement can unlock value from an underutilized asset while helping address evolving financial needs.

A life settlement may be worth exploring when clients experience:

• Rising healthcare expenses: Unexpected medical bills or long-term care costs can place significant pressure on retirement assets. A life settlement may provide immediate, tax-advantaged liquidity to help fund these needs.
• Increasing premium costs: As a policyholder ages, premiums can become increasingly difficult to justify on a fixed retirement income.
• A reduced need for coverage: Policies originally purchased to protect young families, fund business agreements, or cover mortgage obligations may no longer serve their original purpose.
• Additional retirement income needs: Converting an underutilized life insurance policy into cash can improve cash flow, supplement retirement income, and support evolving lifestyle goals.

Successful referrals to LCX Life may also create an additional revenue opportunity for advisors through referral compensation on eligible life settlement transactions.

Partnering With LCX Life

LCX Life makes the life settlement process simple, transparent, and advisor-focused. As you evaluate options with your clients, we provide access to our team of life settlement experts who help assess policy eligibility, educate clients on their options, and guide them through a secure, streamlined process—all at no cost or obligation.

We help by:

• Evaluating existing life insurance policies to determine whether they may have value in the secondary market—with complimentary policy reviews.
• Educating advisors and clients on life settlement eligibility—with direct access to experienced policy specialists and resources.
• Providing transparent guidance throughout the life settlement process—from initial review through settlement.

LCX Life serves as a trusted resource, helping advisors uncover additional value for eligible clients while providing an opportunity to earn referral compensation for successful transactions.

You can get an instant estimate of the value of your client’s life insurance policy by visiting the LCX Life Calculator. You can also call LCX Life at 888-388-0988, contact us here, or email info@lcxlife.com to discuss your client’s situation.