Purchasing Criteria
Inusrance/Financial Services Education
Education & Training
There are many factors that drive policy values in the secondary market. While there are many factors that are ultimately considered, providers (buyers) most often take into account specific aspects of the case. The following tables outline the variables that are considered and the characteristics of a qualified case for a life settlement transaction.
| Insured Specific | |
| Insured's Age | Target age is 70 or above, but must be 65 years of age or older |
| Health Condition | Life Expenctancy up to 16 years |
| State of Ownership | Confirmation of Policy Owner’s state of residence required for submissions |
| Settlement Timeline | The time necessary to underwrite, negotiate, and settle a policy |
| Policy Specific | |
| Face Value | Policy face value must be $250,000 or greater |
| Premium Structure | Premium to face ratio less than 7.0% are considered |
| Policy Types | All policy types: including UL, WL, Term, VUL, Joint-survivorship |
| Financing Structure | Traditional premium financed and other premium financing arrangements |
