As a general guideline, there are some requirements you typically must meet in order to qualify:
Life Settlement Qualifications
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.
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.
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.
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!
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