Life Settlement Qualifications

As a general guideline, there are some requirements you typically must meet in order to qualify:

Policy Holder's Age

Must be 70+ years old.

Unlike a viatical settlement or an accelerated death benefit, a life settlement is not intended for someone who is younger and facing a terminal illness. If you’re thinking about pursuing a life settlement you should be at least 70 years old.

Death Benefit Amount

Policy death benefit of at least $100,000

If your death benefit is under $100,000, than a life settlement is probably not the best fit for you and your family, your policy would not qualify.

Minimum Policy Length

Policy must be in force 2+ years.

This is consistent from state to state, you typically need to have held your life insurance for at least 24 months in order to receive a life settlement benefit.

Policy Type

Whole life/universal life/term life.

If you do not hold a universal life or whole life policy, don’t immediately let this stop you. At Windsor, we are happy to look into converting your term policy into a permanent product prior to pursuing a life settlement so that you can still qualify for a life settlement.

Download the eBook!

Interested in more information?  The Ultimate Life Settlement Guide is complimentary and contains everything you need to know, including:

 

  • Important factors that can affect a policy’s value.
  • How to calculate a policy’s value.
  • An overview of the taxation of life settlements.
  • Life settlement brokers.
  • Life settlement risks, considerations and more!

Click To Download