Candidates for life settlements are typically age 65+ or older and own a life insurance policy with a face amount in excess of $100,000.

A settlement is only possible when the policy’s market value exceeds the cash surrender value.

Key factors in determining the market value of a policy are the death benefit, the cost of future premiums, and the life expectancy of the insured.

WHY LIFE SETTLEMENTS - CONSUMER ADVISORS - GETTING STARTED

Life expectancy is the key component in determining the market value of a life settlement transaction.

The lower the premiums and the shorter the life expectancy, the higher the selling price. This is because the greater the amount of premiums that need to be paid and the longer the investor must wait for the death benefit, the lower the policy value.

Key characteristics of the settlements market generally include:

  • Insured’s age is 65 or older
  • Insureds with life expectancies of less than 12 years
  • Insured may have one or more health impairments
  • Universal life, term life and 2nd to die policies are most commonly settled.

Stay Informed of Industry News

Latest Blogs

09/16/2020

5 Tips for a Successful Life Settlement Negotiation

There are a lot of factors that go into determining the value of a life settlement. However, none are as important as your ability to…

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03/03/2020

LISA Endorses H.R. 5958, the “Senior Health Planning Account Act”

The Life Insurance Settlement Association (LISA) today endorsed H.R. 5958, the “Senior Health Planning Account Act”, introduced by Rep. Brian Higgins (D-NY) and Rep. Gregory…

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11/20/2019

Get Your Team on the Court

The life settlement industry is undergoing a period of steady growth, fueled by demographic tailwinds and increased consumer awareness of the life settlement option as…

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07/30/2019

Register for the 25th Annual Fall Life Settlement and Compliance Conference

The Life Insurance Settlement Association (LISA) will host its 25th Annual Fall Life Settlement & Compliance Conference, the longest-running professional conference in the life settlement…

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