Hawaii life settlements, explained. Hawaii residents — across Oahu, Maui, Kauai, and the Big Island — who hold permanent life insurance can explore the regulated secondary market. Here’s the Hawaii framework.
Is a life settlement legal in Hawaii?
Yes. Life settlement transactions involving Hawaii residents are subject to the Hawaii Insurance Division framework and applicable federal law. Life settlements in Hawaii are governed by Hawaii Revised Statutes Chapter 431E (Insurance Code) and overseen by the Hawaii Insurance Division (DCCA).
Hawaii life settlement rules at a glance
- Regulator: Hawaii Insurance Division (DCCA).
- Governing law: Hawaii Revised Statutes Chapter 431E (Insurance Code).
- Licensing: Verify provider/broker licensing status with the Hawaii Insurance Division before any transaction.
- Rescission (“free-look”) period: Verify the current rescission requirements with the Hawaii Insurance Division before any transaction.
- Privacy: Personal and medical information is protected.
Why Hawaii residents look into selling a life insurance policy
Honolulu, Maui, Kauai, and Hawaii Island host substantial 65+ populations, including many retirees who relocated for the climate.
Who typically qualifies in Hawaii
- Age 65 or older — or younger with significant health changes.
- Permanent policy (whole, universal, or variable) or convertible term.
- Face value of $100,000+.
- Active policy past the two-year contestability period.
Hawaii tax considerations
Hawaii applies graduated state income tax on the taxable portion of a settlement. Pine Lake does not provide tax advice; consult a qualified Hawaii tax professional. See IRS Revenue Ruling 2009-13.
Other options to understand first
- Keep the policy if still needed and affordable.
- Premium optimization, accelerated death benefit, policy loan, or surrender.
- Life settlement through licensed Hawaii channels.
How a confidential Hawaii policy review works
Pine Lake does not buy policies. We coordinate introductions to professionals licensed by the Hawaii Insurance Division (DCCA). See How It Works or the Education Center.
Hawaii life settlement FAQs
Are life settlements legal in Hawaii?
Yes. Life settlements are legal and regulated in Hawaii. Providers and brokers must be licensed.
How long is the rescission period for a life settlement in Hawaii?
Verify the current rescission requirements with the Hawaii Insurance Division before any transaction.
Who typically qualifies for a life settlement in Hawaii?
Eligibility depends on the policy and the insured. Most candidates are 65+, hold a permanent policy, and have a face value of $100,000+.
What types of policies can be sold in Hawaii?
Most settlements involve permanent policies (whole, universal, variable). Convertible term may qualify.
Will I owe taxes if I sell my Hawaii life insurance policy?
There may be tax consequences. Consult a qualified tax professional. See IRS Revenue Ruling 2009-13.
Could selling my policy affect Medicaid or other public benefits?
It can. Consult a qualified legal or benefits professional before proceeding.
Does Pine Lake Life Solutions buy life insurance policies?
No. Pine Lake provides education and coordinates introductions to licensed professionals.
Authoritative resources for Hawaii policyholders
- Hawaii Insurance Division (DCCA) — verify any licensee here.
- Hawaii Revised Statutes Chapter 431E (Insurance Code)
- NAIC — Life Settlements
- IRS Revenue Ruling 2009-13
Compare with other states
Life Settlements in California | Life Settlements in Washington | All state guides →
Educational use only. Information current as of May 2026; verify with the Hawaii Insurance Division (DCCA).