Life Settlement Calculator

Producing estimates for policyowners and financial professionals since 2012.

Windsor’s life settlement calculator produces an estimate built on experience dating back to 2012. The estimate is free, takes about a minute, and only requires five inputs: whether the policy has been in force for two years, the insured’s general health status, the death benefit, the insured’s age, and contact information.

What happens after the estimate?

Nothing automatic. Windsor is available to discuss and review the calculator results at no cost to policyowners, including next steps and expectations.

Windsor is also available to gather the documents needed to package the case and present it to buyers on a policyowner’s behalf, also at no cost to policyowners. When offers come back, the policyowner sees every one.  Still, no offer ever carries any obligation.

Windsor Life Settlements is a fiduciary that represents the policyowner and is legally bound to the policyowner’s interest. That is the whole reason Windsor exists: the seller should see the market, not a single buyer’s opening number.

Who is eligible to sell a life insurance policy?

A healthy policyowner qualifies at age 75, not 60.

A healthy insured qualifies at 75 or older. That line is the market’s, not Windsor’s. In the federal government’s review of settled policies, the average insured man was 77, and the average insured woman was 81.

A serious health impairment qualifies at any age.

A serious health impairment removes the age line entirely. A 58-year-old with a terminal diagnosis or significant health impairment is likely qualified.

A policy must be two years old before it can be sold.

The policy must have been in force at least two years. Most states set this line, and it is not negotiable by anyone involved. A few states run longer, and a few policies carry their own contestability language that outlasts the state rule.

The policy’s face amount should be at least $100,000

A $75,000 policy costs a buyer the same to underwrite as a $5 million policy. Same medical records, same life expectancy report, same legal review. On the small policy, that expense eats the return, so most buyers usually pass.

Above $1 million, the market behaves differently. Institutional buyers compete harder, and the gap between the first offer and the best offer gets wide enough to fund a few years of care. That gap is the entire argument for a broker.

Some life settlement companies will consider smaller policies at any given time, but most companies start at $100,000.

How much is a life insurance policy worth?

Life settlements aim to be worth more than the surrender value and less than the death benefit of a policy. Where a policy lands between the two depends on four things.

The insured’s health and life expectancy.

Buyers are pricing time. The longer they expect to pay premiums before collecting the death benefit, the less they offer. 

The cost of keeping the policy.

The buyer takes over every future premium. A policy with low, stable premiums relative to its death benefit attracts strong bids. A policy that is expensive to keep attracts weak ones. 

Cash value.

Whole life and universal life build cash as premiums are paid. That cash sets the floor, since no seller should take less than the insurer’s own surrender price.

Policy type.

Universal life is the most commonly settled type. Whole life qualifies, and a whole life policy that pays dividends usually carries more value than one that does not. Variable universal life can qualify when it is well-funded. Term policies can sell after converting to permanent coverage.

Questions policyowners ask.

Is the calculator estimate an offer?

Even though Windsor’s calculator is still one of the simpler life settlement calculators, it remains one of the more accurate ones today.  It’s built from experience selling policies to companies since 2012.  A binding offer comes after licensed buyers review the policy and bid.

Why does the calculator ask for contact information?

Every estimate opens a file that Windsor reviews personally. As a fiduciary, Windsor is legally bound to the policyowner’s interests, which includes safeguarding calculator submissions until the policyowner is ready to begin securing offers.  If a calculator entry appears to have potential, a fiduciary from Windsor will reach out by phone and email to ensure policyowners are aware of their options.

How long does a life settlement take?

One to three months, driven mostly by how fast insurers and physicians return paperwork.

How are proceeds taxed?

More favorably than sellers fear. Since 2017, policyowners today enjoy a tax-free return of premiums and other benefits. Learn more about life settlement taxes and read an example that walks policyowners through the math.

What is the difference between a life settlement and a viatical settlement?

Health of the insured. A life settlement is for insureds who are older but stable. A viatical settlement is for insureds with a terminal or chronic illness, and it typically pays more and is tax-free.

For financial professionals.

Advisors, agents, CPAs, and estate attorneys refer clients whose policies no longer fit the plan: coverage that outlived its purpose, premiums crowding retirement cash flow, an estate that no longer needs the shield. Windsor handles valuation, packaging, the auction, and the paperwork, and reports back at every step, so the referring professional remains part of the client relationship. The agents and financial professionals page covers how referrals work.