Life Settlement Parameters
You will find that the purchasing parameters
for a life settlement transaction differ from purchaser
to purchaser (known as "providers" in the industry) in
much the same way as the underwriting criteria for life
insurance
companies differ.
To be a candidate for a life settlement transaction, the
policy and the person who is the insured should have most
of the following characteristics. First, the insured's
generally need to be over age 65 for men and 70 for women.
However,
if current health conditions have limited life expectancy
to 15 years or less, a settlement may be available for
insureds as young as 60.
Policy parameters should be as follows: cash surrender value below 30% of Face Amount,
loan balance below 30% of face amount, and premiums 5%
or less of face amount.
The policy value amount will vary from individual to individual.
The providers must verify that the policy is in force
and is not encumbered by any other party or subject to
any other restrictions that would prevent payment of a
death benefit. The owner of the policy can be individual,
a corporation, trust, partnership or charity.
If you think you qualify for a Life
Settlement, request a Free
Policy Evaluation Report to see how much you may
receive for your life insurance policy.
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