There are two major categories life settlement offers fall within.

1. Cash Offer - This offer includes a cash lump sum that is offered in exchange for a life settlement policy. Fees and the amount to the policy owner come out of the gross offer amount. 
2. Retained Death Benefit - This offer involves the policy owner retaining a portion of the life insurance policy face amount. The retained face amount can be irrevocably designated to a beneficiary chosen by the policy owner. This type of offer is typically higher than cash offers because the amount is not paid out until the policy matures. Premiums do not need to be paid by the policy owner for the retained amount of life insurance. 
3. Hybrid Offer - A combination of Cash Offer and Retained Death Benefit may be used to maximize value to a policy owner. In some cases the best option could be a cash offer to help pay for expenses and maintaining a $50k retained death benefit amount to cover final expenses.