The first step in the life settlement process is determining if the life settlement opportunity is a good option. Understanding WHY a policy owner might want to sell their existing life insurance policy is important. If alternatives to a life settlement are considered and the why is strong enough, we then must evaluate if the policy is a likely candidate for life settlement.
When asked, the typical candidate for life settlement is an insured over the age of 65, with a life insurance policy over $100,000, and who's health has declined since the original issuance of the life insurance policy. The two factors that determine pricing are insured health and policy values / future premiums. An insured should typically have some health issues and multiple impairments can lead to higher offers. In general the more medical records and health information we have on an insured, the better chances are for a favorable offer.
