Qualifying for a Life Settlement
If you are at least 70 years old and own more than $100,000 of life insurance, you may qualify for a life settlement.
Determining whether you qualify for a life settlement is based on a few basic factors, namely, your age, health history, policy type and future premium costs. Here are a few simple guidelines to help you find out if you qualify for a life settlement:
You should be at least 70 years old (unless you have a serious or terminal illness)
Most licensed life settlement providers require you to be at least 70 years old to qualify for a life settlement. However, if you are younger than 70 and have a serious or terminal illness, you may still qualify for one of our viatical settlement and life insurance loan programs.
The face amount of your policy should be at least $100,000.
To qualify for a life settlement, your policy generally must have a current death benefit of at least $100,000. If you have multiple policies totaling $100,000 in coverage, or have a serious or terminal illness, we may still be able to help.
Your policy type must be eligible.
Most life insurance policy types are eligible, including, Universal Life, Whole Life, Flexible Premium Adjustable Life, Group Life, Indexed Life, as well as governmental benefit policies issued by FEGLI, VGLI and SGLI. Term Life policies usually qualify for a life settlement as long as there is sufficient time left on the term, or the policy is convertible to a permanent life insurance policy.
“Throughout the whole process, you kept me well informed, promptly responded to my emails, calls, and inquiries, and kept me well apprised.”
Another Client Success Story
James received $37,000 for his expiring term life policy.
James was the 70 year old owner of a expiring $350,000 term life policy. He explored the idea of converting it to a permanent policy to extend coverage, but learned the premiums would cost more than 5 times what he’d been paying. Instead of surrendering the coverage back to the insurance company for zero value, James contacted us to find out if he would qualify for a life settlement. After analyzing the policy and converting it to permanent coverage, we were able to get James an immediate cash payout of $37,000 for a policy he could not afford to continue. James was delighted with the result since he would have received nothing had he surrendered the policy to the insurance company.
Frequently Asked Questions
Read common questions and answers about whether you and your policy qualify for a life settlement.
Do I qualify for a life settlement?
Most life settlement candidates are people 70 years or older who have re-evaluated their need for a life insurance policy. Rather than continue paying expensive premiums for an unneeded or unwanted policy, they convert it to cash funds to enjoy while they are living. If you are younger than 70 and are currently dealing with serious illness, you may also be eligible for a viatical settlement or life insurance loan programs.
Do I qualify for a life settlement if I have a serious or terminal illness?
Yes, seriously terminally ill individuals are typically well-qualified and can expect to receive a larger benefit than healthy seniors. If you’ve been diagnosed with a serious or terminal illness, you may be eligible for a viatical settlement or life insurance loan.
What types of policies are eligible for a life settlement?
Universal Life, Whole Life, Variable Universal Life, Term and Convertible Term Life policies issued by U.S. based insurance companies. Joint, second-to-die policies, group policies and those issued by FEGLI, VGLI and SGLI are typically eligible as well.
How much should the policy’s face value be?
Generally, a policy with a face value of $100,000 or higher is eligible for a life settlement.
Do you still have questions?
Visit our Frequently Asked Questions page for a comprehensive list of questions and answers about life settlements. Or, feel free to contact us anytime for a free policy review to find out if you qualify for a life settlement.