Michigan residents, like folks throughout the country, are mostly unaware they should speak to a company that buys life insurance policies before they allow their life insurance to lapse or accept the small “surrender value” from a life insurance company. When you sell your life insurance policy to a third party it is called a “Life Settlement Transaction”. Life insurance companies DO NOT want you to know that a Life Settlement Transaction is an option.


Often times, an owner of a life insurance policy can receive A LOT more money from a life settlement transaction than by accepting what could amount to a measly surrender value. Life insurance companies may not want this option publicized as they would prefer you to allow the policy to lapse. Insurance companies undoubtedly do better when an insured allows a policy to lapse and they never have to pay out a death benefit.

How Do You Benefit from a Life Settlement Transaction?

You may be pleasantly surprised how easy it is in Michigan to get quote for your life insurance policy. In a short initial call, we can analyze whether a life settlement transaction is right for you and go over the next steps. Importantly, throughout the process you are ALWAYS in control and that means that you can stop the process at any time.

The most important thing to know is that if you qualify for a Life Settlement Transaction in Michigan you are almost guaranteed to receive more in a lump sum than if you surrender your policy to the life insurance carrier and definitely more money if you simply let the policy lapse. For these reasons, before you take any action it is important to speak to FH Funding.

Michigan and Life Settlements/Selling a Life Insurance Policy

Michigan is currently the 10th largest state in the United States. It has approximately 10 million residents. Between the 2010 census and the 2020 census, Michigan grew over 3 percent. 51% of the population is estimated to be female. Nearly 20 percent of the population of Michigan is over the age of 60 and over 5 % of the population is over the age of 75.

The three largest counties in Michigan are Wayne County, Oakland County and Macomb County. Kent County comes in a distant fourth in population size. The smallest County in Michigan is Keweenaw County with just over 2,000 people.

Although is the 10th largest state in the Union, Michigan ranks 32nd in median home income. The estimated median income in Michigan was close to $57,000 in 2018. The people of Oakland County make the most on average of any county in Michigan. Per capita income in Leelanau, Livingston, and Washtenaw is also higher than other counties in Michigan.

In Michigan, life insurance policies are governed by Section 500.4000 et seq., of Chapter 40 of the Insurance Code of 1956. This portion of the Code defines very important terms when it comes to life insurance. These terms include things like the “net cash surrender value” of a Michigan life insurance policy. It also sets forth many of the duties and obligations of companies that want to sell life insurance in Michigan. A copy of the code is attached to this page so that you may review it or discuss it with your legal, tax or financial specialist.