Who is an Ideal Candidate for a Life Settlement?

Did you know you can sell all or a portion of a life insurance policy, even term insurance?

 (1 minute read)

Unwanted or unneeded life insurance policies can be sold in a transaction called a life settlement. Many times this process is as easy or easier than selling assets like a home, a car, or other investments. But a life settlement isn’t the ideal financial transaction for everyone, and not every individual with a life insurance policy can qualify. There are several key criteria that make someone an ideal candidate for a life settlement.

Demographics of Life Settlement Candidates

Ideal candidates for a life settlement are individuals who are 65 and older, with multiple or underperforming life insurance policies. A life settlement is an opportunity to get cash value higher than the surrender value for these policies, while also no longer having to pay the premium.

It certainly isn’t required that the policy holder be in poor health to arrange a life settlement. However, the life settlements that are most profitable for the policy holder usually occur in cases where a life expectancy is between three and fifteen years. A change in insurability since the policy was issued may improve your chances of qualifying for a life settlement, especially if you are under age 70.

What Life Settlement Investors Look For

Life settlement investors purchase policies with a death benefit minimum of $100,000. If the policy has moved beyond the two-year contestability period, this is even better in the eyes of the investor. Investors will also consider the costs of future premium payments, the type of life insurance policy, and even the financial stability of the insurer when deciding to qualify a policy for a life settlement.

Did you know you can sell all or a portion of a life insurance policy, even term insurance? Selling an unwanted life insurance policy is no different than selling your car, home or any other valuable asset that will create immediate cash. Contact us today to learn more.

Leo LaGrotte
Life Settlement Advisors
llagrotte@lsa-llc.com
1-888-849-0887

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