An unwanted life insurance policy does not have to be cancelled — if it qualifies, it can be sold for more than the carrier would pay to surrender it. That transaction is a life settlement: an institutional buyer purchases the contract, assumes the premiums, and collects the death benefit later, while you receive a lump sum now. Offers commonly fall between roughly 10% and 35% of face value across the market, and a 2010 U.S. Government Accountability Office review (GAO-10-775) found sellers received about four to eight times what surrendering would have paid.
Burlington County is New Jersey’s largest county by land area, running from the Delaware River suburbs of Moorestown and Willingboro east through Evesham and out into the Pinelands, with the county seat at Mount Holly. It also hosts Joint Base McGuire-Dix-Lakehurst, the only tri-service joint base in the country. That gives Burlington County an unusually large population of military retirees, veterans and federal civilian retirees — and it means the questions here are often about SGLI, VGLI and FEGLI rather than about a policy bought from a local agent.
Below: how military and federal coverage fits (and does not fit) the settlement market, how NJ FamilyCare treats a policy, and what a free policy review involves. Pine Lake Life Solutions offers that review at no cost — send the policy cover page or call (305) 209-7183.
In This Article
- SGLI, VGLI and FEGLI: What Can and Cannot Be Sold
- Why the FEGLI Premium Question Comes Up at 70
- NJ FamilyCare and the $2,000 Asset Limit
- The 60-Month Look-Back, Estate Recovery, and Fair Market Value
- Care Costs Across a Very Large County (2026 Ballpark)
- Which Private Policies Are Worth Pricing
- Vetting Anyone Who Contacts You
- What a Free Policy Review Involves
- Frequently Asked Questions
SGLI, VGLI and FEGLI: What Can and Cannot Be Sold
This is the first question in Burlington County, so take it head on. Servicemembers’ Group Life Insurance (SGLI) and Veterans’ Group Life Insurance (VGLI) are government-administered group programs. They are term coverage with no cash value, and they are not the kind of contract the life settlement market buys. The same is generally true of Federal Employees’ Group Life Insurance (FEGLI), which is group term coverage that continues into retirement at rising cost.
What that does not mean is that federal retirees have nothing to sell. Many veterans and federal retirees also bought private permanent coverage — whole life or universal life from a commercial carrier — often decades ago through a base-adjacent agent or a service organization. Those private policies are the ones worth pricing. Check the carrier name on the cover page: if it is a commercial insurance company rather than a government program, it is worth a review.
Why the FEGLI Premium Question Comes Up at 70
Federal retirees in Burlington County often reach their early seventies and discover their FEGLI premium has climbed sharply, because Basic and Option coverage costs rise with age once the reduction elections take effect. The instinct is to drop it. That may be the right answer, but it is worth checking whether the household also holds a private permanent policy that could be sold instead of dropped, so a lump sum funds care while the free or low-cost portion of federal coverage stays.
The same reasoning applies to VGLI, whose premiums also increase with age brackets. Verify your own current rates with the VA or your agency’s benefits office rather than relying on any third party’s numbers.
NJ FamilyCare and the $2,000 Asset Limit
New Jersey’s Medicaid program is NJ FamilyCare, with long-term care delivered through Managed Long Term Services and Supports (MLTSS), which covers both nursing facility care and home- and community-based services. A single applicant is generally held to $2,000 in countable assets — verify the 2026 figure with the Burlington County Board of Social Services.
Important interaction for veterans: VA benefits and Medicaid are separate systems with separate rules, and receiving VA Aid and Attendance does not exempt a household from Medicaid’s asset test. Cash value inside a permanent life insurance policy is generally a countable resource for NJ FamilyCare once total face value exceeds the state’s small burial-purpose exemption. Group term coverage with no cash value generally is not counted.
The 60-Month Look-Back, Estate Recovery, and Fair Market Value
New Jersey applies a 60-month look-back to transfers made for less than fair market value before a long-term care Medicaid application, and a penalty period follows any that fail the test. Selling a policy through a negotiated market transaction is not a gift. Handing the policy to an adult child is.
Keep the offer letter, the escrow record and the closing statement in the same folder as the Medicaid application materials. New Jersey also pursues estate recovery for long-term care benefits paid at age 55 or older, so plan for where the proceeds go — money spent on care during life is not sitting in an estate later.
| Coverage type | Cash value? | Sellable in the settlement market? |
|---|---|---|
| SGLI / VGLI | No — group term | Generally no |
| FEGLI (Basic and Options) | No — group term | Generally no |
| Commercial whole life | Yes | Often, at $100k+ death benefit |
| Commercial universal life | Yes | Often, especially with rising premiums |
| Commercial convertible term | No | Sometimes, only while conversion rights remain |
| Employer group life (private sector) | Usually no | Sometimes, if convertible to an individual policy |
Care Costs Across a Very Large County (2026 Ballpark)
Burlington County spans river-town suburbs and rural Pinelands townships, and care pricing is not uniform across that distance. As a rough 2026 planning ballpark, assisted living in the South Jersey region commonly runs in the mid four figures to low five figures per month, with semi-private nursing facility care typically higher. Verify against the most recent CareScout (formerly Genworth) Cost of Care survey and against quotes you collect yourself.
Geography matters practically, not just financially. Families in Moorestown or Evesham have far more nearby options than families out toward the eastern townships, and the drive time affects how often anyone visits. Budget for that reality when deciding how much liquidity the plan needs.
Which Private Policies Are Worth Pricing
Buyers generally look for a death benefit of $100,000 or more and an insured in their senior years or with a documented health change since issue. Whole life, universal life, variable universal life, survivorship policies and convertible term all get reviewed. A health decline generally increases the offer, because it shortens the expected premium-paying period.
Convertible term deserves a specific mention here, because a lot of veterans bought commercial term coverage alongside their service coverage. Level term is usually only sellable if it can still be converted to permanent coverage under the contract’s conversion privilege, and those deadlines are strict and unforgiving. Check the conversion rider now, not later.
Vetting Anyone Who Contacts You
Veterans and federal retirees are targeted disproportionately by benefits-related solicitation, so apply the same discipline here as you would to any pension-advance or benefits pitch. The New Jersey Department of Banking and Insurance licenses life settlement providers and brokers and publishes a free license lookup — use it before releasing medical records.
Ask whether you are dealing with a broker who represents you and shops the policy for a commission, or a provider who is the buyer. Require written fee disclosure, third-party escrow so funds are secured before ownership transfers, and a clear statement of your rescission rights after closing. Walk away from anyone quoting a firm price before underwriting, charging an up-front fee, or claiming a VA or federal affiliation they cannot document.
What a Free Policy Review Involves
Start with the policy cover page from the private carrier — carrier name, policy number, owner, insured, death benefit. That single page usually settles whether the policy is a candidate. If it is, the next stage adds an in-force illustration, a current statement showing cash value and any loan, and a signed HIPAA authorization so medical records can be ordered. Nothing is owed and nothing is committed at that stage.
If you proceed, plan on 60 to 120 days to funding. Before accepting, ask the carrier in writing for the cash surrender value and the reduced paid-up death benefit so the comparison is honest. Pine Lake Life Solutions provides the review at no cost and generally works with policies of $100,000 or more — call (305) 209-7183.
This page is educational only and is not legal, tax, medical or investment advice. Confirm current 2026 NJ FamilyCare and VA rules with the appropriate agency or a New Jersey elder law attorney.
Frequently Asked Questions
Can I sell my VGLI or SGLI coverage?
Generally no. Those are government-administered group term programs with no cash value, and the settlement market does not purchase them. Private permanent coverage from a commercial carrier is a different matter and may well qualify.
What about FEGLI as a federal retiree?
FEGLI is group term coverage and is generally not sellable either. If the premium has become unaffordable, weigh your reduction elections with your agency benefits office, and separately check whether any private permanent policy in the household could be sold instead.
Does receiving VA benefits change my NJ FamilyCare eligibility?
VA benefits and Medicaid are separate programs with separate rules, and VA Aid and Attendance does not exempt you from Medicaid’s asset test. Coordinate both with a New Jersey elder law attorney who handles veterans’ cases. Verify all 2026 figures with the Burlington County Board of Social Services.
Is a policy sale a gift under the 60-month look-back?
No, not when it is a genuine sale at a negotiated market price. Transferring a policy to a family member for little or nothing is the transaction that creates a penalty period. Keep the closing documents with the Medicaid file.
How much can a private policy sell for?
Market-wide, settlements commonly fall between roughly 10% and 35% of the death benefit, and a GAO review found sellers received about four to eight times cash surrender value. The actual number depends on age, health, carrier and the size of future premiums.
How long does the process take?
Plan on 60 to 120 days from submission to funding. Medical records and carrier paperwork drive that timeline more than any negotiation does.
Someone called me offering to buy my policy. Should I engage?
Verify them first through the New Jersey Department of Banking and Insurance license lookup, which is free to search. Ask whether they are a broker or the actual buyer, get fees in writing, and never pay an up-front fee. Anyone quoting a firm price before reviewing medical records is not being straight with you.
What do I send for a free review?
The policy cover page from your private carrier is enough to start. Pine Lake Life Solutions reviews it at no cost and generally works with policies of $100,000 or more in death benefit. Call (305) 209-7183.
Find out what your policy is worth — free, confidential, no obligation.
A 15-minute educational review covers your eligibility, every alternative, and a realistic view of what each path would net you.
Related Reading
- What Policies Qualify For Life Settlement
- Life Settlement Vs Surrender
- New Jersey Medicaid Asset Income Limits
- Life Settlement Licensing New Jersey
- Education Center
- Sell Life Insurance Policy Camden County Nj
Pine Lake Life Solutions does not purchase life insurance policies and does not provide legal, tax, or investment advice. Information provided is for educational purposes only. Eligibility for any option, including life settlements, is not guaranteed and depends on individual circumstances, policy terms, underwriting, and market conditions. Consult independent legal, tax, or financial professionals before making decisions regarding a life insurance policy.