💰 Wondering about selling your life insurance policy? Over 25,000 seniors use our free Abacus Life calculator 2026 to estimate how much Abacus Pays might offer for their policy. Get instant life settlement valuations based on your age, health, and policy details.
❓ Frequently Asked Questions About Abacus Life
How much will Abacus pay for my life insurance policy?
Abacus Life typically pays 15-35% of your policy's face value, depending on your age, health, policy type, and current market conditions. Our free calculator above provides an instant estimate based on 2026 Abacus Pays data. For example, a $500,000 policy might receive an offer between $75,000 and $175,000 based on your specific situation.
What is the Abacus Pays program and how does it work?
Abacus Pays is Abacus Life's program that purchases existing life insurance policies from policyholders for cash. It's a type of life settlement where you sell your policy to Abacus Life for more than its cash surrender value but less than its death benefit. The process includes: 1) Application submission, 2) Medical records collection, 3) Policy documentation review, 4) Underwriting and offer determination, 5) Contract signing, and 6) Funding (typically within 45-90 days).
How accurate is this Abacus Life calculator compared to real offers?
Our Abacus Life calculator 2026 provides estimates within 10-15% of actual offers based on Abacus Pays historical data and 2026 market rates. The calculator uses the same key factors Abacus considers: age, health, policy type, face amount, and premium status. However, actual offers require complete underwriting including medical records, policy documentation, and carrier verification. Use this as a preliminary tool before contacting Abacus directly.
What policies qualify for Abacus Life settlements?
Ideal candidates for Abacus Life settlements include: policyholders aged 70+ (though ages 65+ may qualify), face values over $100,000 (minimum economic threshold), policies in force for 2+ years (beyond contestability period), and various policy types including whole life, universal life, variable life, and convertible term insurance. Group policies may qualify if they have portability options. Policies with loans may still qualify but receive reduced offers.
How long does the Abacus settlement process take?
The complete Abacus Life settlement process typically takes 45-90 days from initial application to funding. Timeline breakdown: 1) Initial application (1-3 days), 2) Medical records collection (2-4 weeks), 3) Policy documentation (1-2 weeks), 4) Underwriting and offer (2-3 weeks), 5) Contract signing (3-5 days), 6) Funding (3-5 days). Expedited options may be available for certain situations.
Is selling my policy to Abacus Life taxable?
Tax implications vary by situation. Generally: 1) Your cost basis (total premiums paid) is recovered tax-free, 2) Any amount above cost basis but below cash surrender value is taxed as ordinary income, 3) The remaining gain (amount above cash value) is typically taxed as long-term capital gains (15-20% for most taxpayers). For terminal illness, viatical settlements may be tax-free. Always consult a qualified tax professional for your specific situation.
What's the difference between Abacus Life and other settlement companies?
Abacus Life distinguishes itself through: 1) Member Advantage Program offering premium pricing (8-15% higher) to members, 2) Direct funding model providing quicker payouts than broker-mediated transactions, 3) Specialization in senior policies (ages 70-85) with particular expertise, 4) Transparent fee structure with no upfront costs, and 5) Over $1 billion in policy purchases since 2004. They're one of the largest and most established life settlement providers in the industry.
Can I sell my term life insurance policy to Abacus Life?
Yes, but with conditions. Term policies must be convertible to permanent insurance to be eligible for life settlements. Check if your term policy has a conversion option - most quality term policies do. The conversion must typically happen before the settlement, and the converted permanent policy becomes the asset sold. Policies without conversion options generally cannot be sold. Our calculator includes term policies assuming standard conversion eligibility.
⚠️ Important Legal & Financial Disclaimer
Educational Estimate Only: This Abacus Life calculator 2026 provides estimates for informational purposes only. It is not an official Abacus Pays offer, nor does it constitute financial, legal, or tax advice. Actual offers require complete underwriting and may differ substantially from calculator estimates.
Professional Consultation Required: Always consult with qualified financial advisors, tax professionals, and legal counsel before making decisions about life insurance policies. Life settlements have significant financial, tax, and estate planning implications that vary by individual circumstances.
State Regulations: Life settlements are regulated at the state level with varying requirements. Verify that any settlement provider is properly licensed in your state. Abacus Life is licensed in multiple states but not all - confirm availability in your jurisdiction.
Last Update: February 1, 2026 | Data Source: 2026 Abacus Pays historical averages and SEC-reported transactions