WHAT QUALIFIES?
Many types of life insurance policies have the potential to become life settlements, however, the ideal would be a universal life policy issued over two years ago, but not so long ago that the cash value represents a large percentage of the face value. The issuing company must be A rated or better. The premium to face ratio should be low and the policy face must be at least $250,000. As the candidate considers his overall financial plan, the policy must no longer be needed or wanted. The ideal candidate would be a male, age 70 or older, whose insurance policy has no outstanding loans. Health is the determining factor in the qualification process. Whether a senior is 65 or 85, they must have experience a substantial decline in health since issuance of their policy, but not to the extent of terminal illness. Healthy seniors under the age of 65 do not qualify. |