5 Qualifications for Selling Your Life Insurance Policy
While the process of selling your life insurance policy for a life settlement is easy to do, not all policies and policyholders may be eligible. It’s important to know what qualifications exist to see if your life insurance policy meets the criteria.
Here are the five primary qualifications that life settlement providers measure when determining whether or not you’re a good fit for selling your life insurance policy.

Qualification #1: Policyholder Age

While there may be exceptions, in the majority of cases an individual must be over 65 to qualify for a life settlement. 

Younger people may be eligible if they have certain medical conditions.
Qualification #2: Policyholder Location

In order to be considered for a life settlement, you must be a United States citizen and live in the United States. This is partly because other countries have different rules when it comes to life settlements. 

You must also meet location requirements because the buyer of your policy should be able to check in quarterly. They’re checking to see if you’re alive and to learn if your health status has changed since your health directly impacts the financial performance of the policy.

Company representatives can easily contact you if you’re living in the United States. It becomes more difficult if you’re out of the country.
Qualification #2: Policyholder Location

In order to be considered for a life settlement, you must be a United States citizen and live in the United States. This is partly because other countries have different rules when it comes to life settlements. 

You must also meet location requirements because the buyer of your policy should be able to check in quarterly. They’re checking to see if you’re alive and to learn if your health status has changed since your health directly impacts the financial performance of the policy.

Company representatives can easily contact you if you’re living in the United States. It becomes more difficult if you’re out of the country.
Qualification #3: Policy Size & Type

In order to draw offers for your policy, it generally needs to have a face value of $100,000 or more. If the death benefit on the policy is less than $100,000, you will have difficulty selling it. 

Keep in mind, this requirement and other life settlement criteria can change at any time which is why it’s important to be educated on the subject or involve someone who can guide you through the process.

The type of policy also plays a contributing role as to whether or not you’re eligible for a life settlement. Universal Life (UL), Survivorship Universal Life (SUL), Convertible Term Life, and Whole Life (WL) policies can all be sold.

A rule to remember is that larger life insurance policies belonging to older individuals are usually the most attractive policies to a life settlement company.
Qualification #4: Date of Policy Issue

The date your insurance policy was issued plays a big role in whether it qualifies for a life settlement. In some states, a policy must have been active for more than 25 months to be eligible for a life settlement, while other states require that a policy be in effect for up to five years. 
Qualification #5: Insurance Carrier

In order for a policy to qualify for a life settlement, it must have been issued by a United States-based carrier with an A.M. Best Rating of B++ or better. 
Learn How To Sell Your Unwanted Life Insurance Policy For Cash
Your policy must have a benefit amount of $100,000 or more to qualify. 
You can get a cash payout from your policy if it no longer serves a purpose for you. Choose a time on Allan's calendar below to get your free phone call consultation, plus get your free guide to life settlements emailed to you instantly.
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