Most life settlements are available once the insured is 65 or older — but age is only the first of four things that decide whether you qualify. Here is what eligibility actually comes down to, and how to check yours in under a minute.
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Most life settlements are available once the insured is 65 or older. That is the general threshold — younger policyholders can sometimes qualify with a serious change in health, but 65 and up is where the secondary market is most active.
Age is just the first checkpoint, though. Whether you actually qualify comes down to four things: your age, the type of policy you hold, its death benefit, and your health since the policy was issued. Our guide to what disqualifies a policy covers the cases that fall outside the lines.
If the four line up, the next question is what the policy is worth — our life settlement calculator gives you a fast read, or our overview of selling a life insurance policy walks through the process.
Eligibility isn't one yes-or-no question — it's four factors that, together, decide whether your policy is a fit for the secondary market.
These are the factors a free review weighs — not a pass/fail formula. Falling short on one does not always rule you out, and every policy is different.
No single factor is a pass/fail by itself — a review weighs all four together. Here is what each one means.
Generally 65 or older. The closer the insured is to life expectancy, the stronger the fit; under 65 is considered case by case, usually alongside a change in health.
Permanent policies — whole and universal life — qualify most readily. Convertible term can qualify while its conversion window is open. Term with no conversion option left generally cannot be sold.
The death benefit needs to be large enough for the secondary market. Very small policies usually are not a fit, but you do not need an unusually large one — a review confirms where yours lands.
A change in health since the policy was issued can strengthen a policy rather than rule it out, because it is part of how buyers assess it. You do not need to be ill to qualify.
A short eligibility check runs through all four factors and tells you where your policy stands — in under a minute, free and with no obligation.
Most life settlements are available once the insured is 65 or older — that is the general threshold where the secondary market is most active. Younger policyholders can sometimes qualify with a serious change in health, but 65 and up is the usual starting point. Age is only the first of four factors that decide eligibility.
Eligibility comes down to four things: your age (generally 65 or older), the type of policy you hold, its death benefit, and any change in health since the policy was issued. When those line up, a policy can usually be presented to institutional buyers. The only way to know for certain is a free, no-obligation review of your specific policy.
Permanent policies — whole life and universal life — qualify most readily, because they hold cash value and a permanent death benefit. Convertible term can qualify too, if it is still within its conversion window. Most policy types are in play; the main exception is term coverage with no conversion option left, which generally cannot be sold.
There is a practical minimum: the death benefit needs to be large enough to interest the secondary market. Very small policies usually are not a fit, but you do not need an unusually large one either. Whether a particular face value qualifies depends on the policy and current market appetite, which a free review can tell you.
Sometimes. While 65 is the general threshold, a policyholder under 65 with a significant change in health since the policy was issued can still qualify in some cases, because health is one of the factors buyers weigh. It is evaluated case by case, so a quick review is the best way to find out.
Yes. A change in health since the policy was issued is one of the four eligibility factors, and it can actually strengthen a policy on the secondary market rather than disqualify it. You do not need to be ill to qualify — health is simply one of the things a review considers alongside age, policy type, and death benefit.
Lifestone is a family-owned life settlement company that connects sellers with institutional buyers. A free, no-obligation review tells you whether your policy qualifies — and what it could be worth.
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