Written by Jovan Johnson, Esq., Structured Settlement & Annuity Specialist
Industry-Reviewed by Kevin Lowe, COO of Genex Capital, Structured Settlement Secondary Market Specialist
Updated June 22, 2026
Sell Life Contingent Payments — Get the Highest Lump Sum
Annuity Freedom works with the funding partner that purchases more life contingent structured settlement and annuity payments than any other buyer in the country. When other companies say “we don’t do those,” our partner does — and clients typically receive thousands more as a result.
If you’ve been told your payments are “life contingent,” “out of guaranteed period,” or “for life only,” you have options. Our network closes these transactions every week, in every state, with payments scheduled as far out as 2070.
Get a free, no-obligation quote on your life contingent payments. Call (877) 547-3672 or request a quote — most quotes returned in under 24 hours, with same-day cash advances available after you sign.
What Are Life Contingent Payments?
A life contingent payment is a structured settlement or annuity payment that the insurance company is only required to pay while a specific person — called the measuring life — is still alive. If that person passes away before the payment schedule ends, the remaining payments stop. There is no residual value to a beneficiary.
This is the core difference between life contingent payments and guaranteed payments:
Guaranteed payments are paid for a fixed period (say, 20 years) regardless of whether the recipient lives. If the payee dies, a beneficiary inherits the remaining payments.
Life contingent payments continue only if the measuring life is alive. Once they pass, payments end.
Many structured settlements include both. A typical structure might read: “$2,500 per month guaranteed for 20 years, then $2,500 per month for life.” The first 20 years are guaranteed. Everything after is life contingent.
You’ll sometimes see these called “out of guaranteed period” payments, “life-only” payments, or “life with X years certain” annuities. They all describe the same thing: payments tied to someone’s lifespan.
Common contract language that signals a life contingent payment
If you see any of the following phrases in your annuity contract or settlement agreement, you have life contingent payments:
| Issuer | Common phrasing |
| MetLife | “while the Measuring Life is living” |
| Prudential | “for as long after that as the Measuring Life lives” |
| Hartford | “$X monthly for life with the first 360 months guaranteed” |
| American General | “Payments Only During The Lifetime of Measuring Life” |
| John Hancock | “Life with Certain Annuity: $X for life, payable monthly” |
| Symetra | “as long as the annuitant is alive” |
| Pacific Life | “for the life of the Measuring Life” |
| Berkshire Hathaway / BHG | “payable for life” or “life contingent” |
| New York Life | “life income with X years guaranteed” |
Not sure what your contract says? Send it over. We’ll review it for free and tell you exactly which payments are guaranteed and which are life contingent — no obligation to sell.
Yes, You Can Sell Life Contingent Payments
This is the most common question we get, usually from people who’ve already been turned down by another company: Can life contingent payments actually be sold?
Yes. They can be sold for a lump sum through the same court-approved transfer process used for guaranteed payments. The legal framework — typically your state’s Structured Settlement Protection Act — applies to both. A judge reviews the transaction, confirms it’s in your best interest, and approves the transfer.
The reason some companies say “no” isn’t a legal barrier. It’s a capacity barrier. Pricing life contingent payments requires actuarial expertise that most factoring companies don’t have. So they decline rather than offer a low number that might lose your business anyway.
We don’t turn these clients away. We connect you directly with the partner who specializes in them.
Why Our Network Leads the Market for Life Contingent Payments
We’ve built our relationships around the transactions other companies turn away. Here’s what that means in practice:
Highest acceptance rate in the industry. If your payments have a measurable life expectancy, our partner will quote them. They’ve purchased payments due in 2055, 2060, even 2070.
Better pricing through volume. Because our partner closes more life contingent deals than anyone else, their capital partners price the risk lower. That translates directly into more money for you.
Every major issuer. MetLife, Prudential, New York Life, Hartford, AIG, Pacific Life, Transamerica, Symetra, John Hancock, Berkshire Hathaway, Allstate, Athene, Mutual of Omaha, Genworth — our network has closed transactions with all of them and knows each issuer’s transfer process.
Cash advances. Court approval takes 30 to 90 days. You don’t have to wait. Most clients receive a no-interest, no-fee cash advance within 24 hours of signing the purchase agreement.
No fees, ever. The number you’re quoted is the number you receive. Court costs, legal fees, processing — all of it is paid for by the buyer.
If a competitor has already given you an offer, bring it to us. We’ll see if our partner can beat it, or tell you honestly if this is not possible.
Sample Payouts on Life Contingent Payments
The following are illustrative examples based on typical life contingent transactions closed through our network. Actual offers depend on the measuring life’s age and health, the issuer, the timing of payments, and current market discount rates.
Example 1 — Younger payee, near-term payments
Seller: 38-year-old male, good health, non-smoker
Issuer: MetLife
Payments: $2,000/month for life, beginning January 2027 (no certain period remaining)
Sale: All payments through 2047 (20 years of life contingent payments)
Estimated lump sum range: $185,000 – $205,000
Example 2 — Mid-life payee, deferred start
Seller: 52-year-old female, average health
Issuer: Prudential
Payments: $1,500/month for life, beginning July 2032
Sale: First 15 years of life contingent payments
Estimated lump sum range: $72,000 – $82,000
Example 3 — Long-tail life contingent payments
Seller: 45-year-old male, good health
Issuer: Hartford
Payments: $3,000/month for life, beginning 2040 (after a 20-year guaranteed period)
Sale: 25 years of payments out of guaranteed period (2040–2065)
Estimated lump sum range: $75,000 – $95,000
Example 4 — Larger annual payment, third-party measuring life
Seller: 60-year-old female (payee); measuring life is 58-year-old spouse, good health
Issuer: New York Life
Payments: $25,000/year for life, beginning 2030
Sale: Partial — 50% of each payment for 20 years
Estimated lump sum range: $ 60,000 – 85,000
Example 5 — High-value lifetime payments, supported by life insurance
Seller: 41-year-old male, excellent health, qualifies for term life policy
Issuer: Berkshire Hathaway
Payments: $5,000/month for life, beginning 2028
Sale: All life contingent payments through 2058
Estimated lump sum range: $480,000 – $515,000
The single biggest driver of pricing variance? Whether the buyer can hedge mortality risk with a life insurance policy. When a policy is in place, the discount rate drops and your lump sum rises — often by 15–25%.
How Life Contingent Payments Are Priced
Pricing a life contingent payment is fundamentally different from pricing a guaranteed payment. With a guaranteed payment, it’s present-value math — what’s a stream of certain future dollars worth today? With a life contingent payment, the buyer layers mortality risk on top of that calculation. Six factors drive your offer:
- Age and health of the measuring life. This is the dominant factor. A 35-year-old in good health and a 70-year-old with health conditions will receive very different offers for the exact same payment stream. Our partner uses actuarial life tables, sometimes supplemented by underwriting from a partner reinsurer, to project payment duration.
- When the payments begin and end. Payments starting in 3 years are worth substantially more than identical payments starting in 20 years. The further out a payment is, the more both time-value-of-money discounting and mortality risk compound against it.
- The annuity issuer. Payments from A++ rated carriers (Berkshire Hathaway, New York Life, MassMutual) carry less counterparty risk than payments from lower-rated issuers, which means a lower discount rate and a higher lump sum.
- Whether life insurance is available. A life insurance policy on the measuring life lets the buyer hedge the risk of early death. When that hedge is in place, pricing can be more aggressive. Insurance is not required, but it almost always increases your offer.
- Who the measuring life is. If you are the measuring life, the underwriting is based on your life expectancy. If a spouse, parent, or other family member is the measuring life, the underwriting is based on theirs. This is more common than people realize and it changes the math entirely.
- Issuer transfer fees. Some carriers charge $0 to process a transfer. Others charge up to $3,500. These are absorbed into the offer — the number you’re quoted is the number you receive — but they affect what can be offered in the first place.
Life Contingent vs. Guaranteed Payments at a Glance
| Guaranteed Payments | Life Contingent Payments | |
| Duration | Fixed term (e.g., 20 years) | Only while measuring life is alive |
| Beneficiary inheritance | Yes | No — payments stop at death |
| Discount rate | Lower | Higher (mortality risk priced in) |
| Effect of life insurance | None | Can significantly raise offer |
| Number of buyers | Many | Few specialists |
| Court approval required | Yes | Yes |
| Pricing variance between buyers | Modest | Wide — get multiple quotes |
| Does our network buy these? | Yes | Yes — and our partner leads the market |
Your Selling Options — You’re Not Locked Into All-or-Nothing
Most people don’t need to sell every payment. Five common structures:
Sell all life contingent payments. A single lump sum for the entire stream. The simplest path.
Sell a defined block of future payments. For example, sell years 5 through 15 while keeping years 1–4 and 16+. You preserve current income and any far-future income.
Sell a percentage of each payment. Sell 50% of each monthly payment as a lump sum now; continue collecting the other 50% as scheduled. Good for sellers who need cash but want to preserve income continuity. Please note, there are a few insurance companies (eg. MetLife) that do not let you split your payments.
Sell the back end only. Keep every payment for the next 5 or 10 years; sell only payments due after that. Useful if your current income is fine but you want capital today instead of in 20 years.
Sell the front end only. Sell the first 5 or 10 years of payments; keep every payment after that. As a reminder, immediate payments are worth significantly more than payments far off in the future due to the time value of money. This is a very popular option for clients because you can keep your payments in the future for your retirement etc.
Tell us what you need the money for and what you want to keep. We’ll help you explore every option that fits — at no cost.
How the Process Works
Step 1 — Free quote (24 hours). Call us, complete our form, or text. You’ll be asked your insurance company and about your structured settlement payments you are receiving (and for a copy of your annuity contract or benefits letter if you have one available), your date of birth, and a few health questions. Most quotes go out within 24 hours.
Step 2 — Sign the purchase agreement. If you accept the offer, paperwork is sent to you. You can sign electronically. This is the moment you can request a cash advance — typically funded within 24–48 hours.
Step 3 — Court filing and approval (30–90 days). Every filing in your state’s appropriate court is handled on your behalf. Filing fees are covered. The hearing is arranged. In most jurisdictions you’ll attend a brief hearing — often by video — where a judge confirms the sale is in your best interest. Required by federal IRC §5891 and your state’s Structured Settlement Protection Act.
Step 4 — Funds wired. Once the court order is signed and the issuer processes the change of payee, your lump sum is wired (minus any cash advance already paid). Most transactions close within 45–60 days from start to finish.
Frequently Asked Questions
How do I know if my payments are life contingent?
Look at your annuity policy or settlement agreement for phrases like “for life,” “while living,” “life with X years certain,” “as long as the Measuring Life is alive,” or “life only.” If you see any of these, at least part of your settlement is life contingent. Send us your documents and we’ll review them at no charge.
Can I sell life contingent payments if I have health issues?
Yes. Health is one of several factors underwritten, not a disqualifier. Sellers with significant health issues typically receive lower offers because the mortality risk is higher, but transactions close routinely for sellers in every health category. We’ll be straight with you about how your situation affects pricing.
Do I need a life insurance policy to sell?
No. A policy isn’t required, but when one is available it usually raises your lump sum by 15–25% because it lets the buyer hedge mortality risk. If you’re insurable, our partner can help coordinate a policy. If you’re not, your payments can still be purchased.
Why did another company refuse to buy my life contingent payments?
Most factoring companies don’t have actuarial pricing capacity or capital partners willing to underwrite mortality risk. Rather than develop that capability, they decline. Our partner has built theirs specifically for these transactions, which is why our network closes more of them than anyone else.
How long until I get paid?
A cash advance can be in your account within 24–48 hours of signing. The full lump sum is paid after court approval, which takes 30 to 90 days depending on how busy your local court is and the issuer’s processing time.
What if the measuring life is my spouse, not me?
Common, and it’s handled routinely. The underwriting is based on whoever the measuring life is. The rest of the transaction works the same way.
Are there fees?
None to you. The number on your offer is the number wired to your account. Court costs, legal fees, filing fees — all of it is built into the discount rate, never charged separately.
How far out can payments be and still be sellable?
Almost as far as you can imagine. Our network has purchased life contingent payments due as late as 2070. The further out, the lower the per-payment value, but they remain marketable.
Can I change my mind?
Yes, until the court approves the transfer. Federal and state law require a cancellation window after signing (typically 3 business days). After court approval, the transfer is final.
Will selling affect my taxes?
For structured settlements arising from physical injury claims, the lump sum is generally tax-free under IRC §104(a)(2), preserving the original tax treatment. For other annuities, the tax treatment varies. We’re not tax advisors — please consult a CPA before signing.
Why Sellers Choose Annuity Freedom for Life Contingent Transactions
Connected to the volume leader. We work exclusively with the partner who closes more life contingent transactions than any other buyer in the U.S.
Best-price guarantee. Bring us a competing offer — we’ll see if our partner can beat it, or tell you honestly that the other buyer is being aggressive.
Cash advances. No interest. No fees. Deducted from your lump sum at closing.
Every state, every issuer. Our network is licensed and experienced in all 50 states, with active relationships at every major annuity carrier.
Transparent math. You’ll see the discount rate, the present-value calculation, and exactly where every dollar goes.
Since 2017. Thousands of transactions facilitated, an A+ track record, and a team that does this every day.
Get Your Free Quote on Life Contingent Payments
Tell us a little about your payments and we’ll come back with a real number — not a range, not a teaser. Most quotes return in under 24 hours.
Call (877) 547-3672 | Request a quote online | Text us your contract for a same-day review
No fees. No obligation. No pressure. If the offer you receive isn’t the best one out there, walk away.
About the Author: Jovan Johnson, Esq. is a structured settlement & annuity specialist with 12 years of experience, based in California. He has also practiced as an attorney in consumer and small business bankruptcy and debt settlement. Annuity Freedom has been helping clients sell annuity payments since 2017.
About the Reviewer: Kevin Lowe is the Chief Operating Officer of Genex Capital and has more than a decade of experience in specialty finance and the structured settlement secondary market. Since joining Genex in 2013, he has overseen transaction management, investor relations, compliance, and strategic initiatives across the United States, working closely with annuitants, investors, legal professionals, and financial institutions.