Part 3: How To Calculate A Policy’s Value

Important Factors That Can Affect Your Settlement Value

Get a better understanding of what can impact the value a life settlement.  Policyholders will have a better idea of what to expect from the process. Quotes provided by a life settlement calculator should always be taken with a grain of salt. Policyholders with well-managed expectations are ultimately in a better position.


Qualified Policy TypeFace Amount of a Policy
Your Age and Life ExpectancyCurrent Cash Value
Your Annual Premium Amount
Whole. Universal. Term.
A term policy can sometimes be converted into a permanent product prior to pursuing a life settlement. So, term policies can still qualify for a life settlement.
The minimum policy face amount, for most life settlements, is $100,000.00.Policyholders aged 60+ typically receive higher offers.  The older a policyholder, the more a policy is worth to a buyer.  Policyholders receive higher offers if their policy has a high cash value.  A buyer may use the cash value of your life insurance policy to cover expenses.
The most valuable policies usually have lower premiums.  After a life settlement, the buyer takes over paying the future premiums.

How A Life Settlement Calculator Can Help

An accurate life settlement calculator saves precious time and energy.  It lets a policyholder know whether or not it’s even worth hiring a life settlement broker.  So, a proper calculator should provide an estimate indicating whether or not it’s worth pursuing what can be a long process of securing a life settlement.

What to Expect

Policyholders can expect an instant life settlement quote after inputting some basic information about the policy.  The process of reaching an actual settlement can be quite long. First, policyholders need a current life settlement valuation.


A life settlement calculator should come with transparency and not a sales pitch. They should be more honest and realistic. To get started, policyholders usually need:


  • basic contact information
  • the insured’s age
  • the policy’s face amount
  • the insured’s current health status
  • a policy that’s been in force for at least two years


Life settlement calculators shouldn’t make any guarantees that a life settlement provider will offer to purchase a policy.


Policyholders use a life settlement calculator tool to get a better idea of a policy’s resale value.  Then begin the process of reaching out to life settlement brokers to get a more formal quote.

Beware Of Life Settlement Calculators

A basic life settlement calculator should provide an instant life settlement quote. It should provide an honest assessment of a life insurance policy and available options on the secondary market. Policyholders should instantly discover if they can sell a policy or if it makes more financial sense to keep it.


The easiest way to obtain a life settlement policy valuation is to use one of the many calculators that are available online.  However, no life settlement calculator should ever provide a formal, legal, or binding offer. Policyholders should understand there are many factors not covered by any calculator.


Life settlement calculators claim to estimate a policy’s value.  Unfortunately, policyholders shouldn’t always trust these estimates.


"Policyholders should instantly discover if they can sell a policy or if it makes more financial sense to keep it. Unfortunately, this is not always the case.  Many times, life settlement calculators are very wrong.  A policyholder's expectations are mismanaged and their precious time is wasted when they find out ultimately their policy doesn't qualify or if it does, it's much less valuable than promised.  It makes us all look bad." - Ken Kelly, CEO Windsor Life Settlements

Some calculators are simply not realistic in many cases.  Consequently, policyholders can waste a great deal of time and hassle going through the settlement process only to be turned down or offered significantly less than what was expected.


Who Qualifies For A Life Settlement?

Policyholders can instantly determine if a policy qualifies for a life settlement by using our new life settlement calculator.  Alternatively, use the “Tell Us About Your Policy” form on our contact us page and we’ll be in touch the same day.  Finally, to discuss a policy with a broker right away, please feel free to call the office anytime: (866) 878-9611

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