When evaluating your own policy or a client’s policy for a potential life settlement, how does one know if the policy qualifies? Are there specific parameters one must fit in to be an eligible candidate for a life settlement?
Some of the key factors for a policy to be a good candidate for a life settlement are as follows:
- Insured is 65 years of age or above
- Policy is either a Term, Whole life or Universal Life policy
- Policy has a face amount over $100,000
- The policy is no longer needed, wanted or affordable
- If the policy may be surrendered or lapsed
- A term policy that will not be converted to a permanent policy by the owner
- Policy has been in force for at least 2 years
Although there are certain parameters to be eligible for a life insurance settlement, each case is evaluated on a case by case basis. We strongly advise anyone considering a possible settlement, even if you may have been told the policy may not be a candidate, to give us a call.