Life settlement application parameters

Posted: Fri Mar 06, 2009 10:24 am Post Subject:

Life settlement is gradually become more and more popular amongst the seniors who have no heir to pass their life insurance benefits. Rather, the policies have become an obligation to them since they have to continue paying the premium.

Life settlement is emerging as an option to people who are old or terminally ill and can do better with the cash they would get from selling unwanted life policies to interested third parties.

Thanks,
Rupert

Posted: Fri Mar 06, 2009 01:04 pm Post Subject:

Hi,

In order to qualify for a life settlement an insured has to be over 65 in case the insured is a male and over 70 in case the insured is a female.

However, if the health conditions of the insured are such that he has less chances of surviving 15 years or more, then he might be eligible for a life settlement at an age as early as 60.

Roddick

Posted: Sat Mar 07, 2009 12:03 am Post Subject:

60 years old is a long shot...

here are the life settlement parameters:

65 years old +
50k-500k face - small face programs (smaller offers)
500k face + is the norm. $5mm is the sweet spot
premium to face ratio should be less then 6%
If term then it needs to be convertible
low cash values are preferred
Life expectancies of 24-160 months anything more and it get harder to sell.

Let me know if this answers your question.