Life Settlements


A Life Settlement is the sale of an existing life insurance policy to a settlement 
provider or funding company. The provider determines a dollar value of the 
existing policy and the policy owner receives a check. Of course the next 
questions are :

Why would a policy be sold? Who qualifies? What type of policy qualifies?

There are many reasons for selling a policy :

Raise money for medical expenses, charitable contributions, the policy is no longer 
needed, the policy will lapse without benefit to the owner.

Next, what type of policy qualifies for a Life Settlement?

Almost any type of policy will qualify - Term, Ordinary, Whole Life, Group, Key 
Man, etc. The policy should have a face value of $250,000.

Finally, who Qualifies?

When assessing a case the provider reviews the age of the policy owner (65 plus 
is best) and health conditions. These factors determine the amount a funding 
company may offer. Of course each case is reviewed on an individual basis. There 
are no strict regulations or guidelines.