Life Settlement Eligibility: Does Your Policy Qualify?
Answer 5 quick questions to see how your policy compares with the life settlement eligibility criteria buyers commonly consider. Not every policy qualifies for a life settlement. Eligibility and outcomes depend on policy characteristics, insured health, premiums, underwriting, and market conditions.
How old is the insured?
Life settlements are commonly considered for insureds 65 and older, though younger insureds with health changes may also be considered.
Complete Life Settlement Eligibility Criteria
Here is a breakdown of the factors commonly considered when evaluating whether a policy may be suitable for a life settlement broker to present to buyers.
Insured Age (commonly 65+)
Insureds age 65 or older are commonly considered. Younger insureds may be considered with a serious medical condition.
Policy Face Value (commonly $250,000+)
Many institutional buyers commonly consider policies with a death benefit of $250,000 or more. Smaller policies are evaluated less often.
Policy In Force Past Contestability
Policies are commonly considered after the contestability period, often two years. Rules vary by state; confirm current requirements with your state insurance regulator.
Policy Type
Universal life, whole life, convertible term, and group life policies are commonly considered. Non-convertible term policies are considered less often.
Learn more about policy type →Insured's Health Status
Good health does not rule out a life settlement. Changes in health since the policy was issued are one factor buyers commonly consider.
Learn more about insured's health status →No Current Beneficiary Contest
The policy should not be subject to an active legal dispute or irrevocable beneficiary arrangement that prohibits sale.
Life settlement requirements
There are no universal requirements for a life settlement. Each buyer sets its own preferences, and states differ in how they regulate these transactions. What follows are common factors, not requirements, that Accelerated Life Solutions sees buyers weigh when they review a policy.
Policy type is one of the first things buyers look at. Universal life, whole life, and convertible term policies are commonly considered. A term policy that can still be converted to permanent coverage may be evaluated, and the conversion deadline in the policy contract can matter, so it is worth checking that date early.
Face value is another common factor. Many buyers commonly consider policies with a death benefit of $250,000 or more, although this is a general tendency rather than a fixed cutoff. Buyers also look at how the cost of keeping the policy in force compares with the death benefit, since ongoing premiums affect what a policy may be worth to them.
How long the policy has been in force also comes up. Policies are commonly considered once they are past the contestability period, which is often two years. Waiting periods and related rules vary by state, so it helps to confirm the current rules with your state insurance regulator.
Finally, buyers usually rely on medical underwriting and life expectancy estimates for the insured. Not every policy qualifies for a life settlement. Eligibility and outcomes depend on policy characteristics, insured health, premiums, underwriting, and market conditions.
Minimum age for a life settlement
There is no single minimum age that applies to every life settlement. Buyers commonly look at insureds age 65 or older, and some will consider insureds age 55 or older when a serious health condition is involved. These are common patterns, not rules, and each case is reviewed on its own facts.
Age matters because it feeds into the life expectancy estimate that underwriters prepare. A buyer generally wants to understand how long premiums may need to be paid before a death benefit is expected. Health history, current conditions, and treatment all play a part alongside age, so two insureds of the same age can receive very different assessments.
An insured who falls outside the commonly considered age range is not automatically excluded from review. Some policies with younger insureds may still attract interest, depending on health and policy characteristics. Others may not, and the outcome depends on the market at the time.
If you are unsure where your situation falls, a confidential evaluation can help you understand whether a policy may have secondary-market value before you decide to surrender or lapse it. Qualified submissions may receive a preliminary valuation within approximately 24 hours after sufficient initial information has been received.
Key facts
- Not every policy qualifies for a life settlement. Eligibility and outcomes depend on policy characteristics, insured health, premiums, underwriting, and market conditions.
- Insured age, health, policy type, face amount, premiums, and how long the policy has been in force are commonly considered.
- Qualified submissions may receive a preliminary valuation within approximately 24 hours after sufficient initial information has been received.
- Life settlements are regulated at the state level; the NAIC publishes a consumer guide explaining how they work. (NAIC — Consumer's Guide to Life Settlements)
- Policyowners may contact us directly for a confidential policy evaluation. If you work with a financial or insurance professional, we can coordinate with them as appropriate.
Life Settlement Eligibility FAQs
What is the minimum age for life settlement eligibility?
What policy face value is commonly considered for a life settlement?
Can I sell a term life insurance policy?
Does the insured need to be in poor health to qualify?
Can a trust-owned policy be sold in a life settlement?
Does meeting the eligibility criteria guarantee an offer?
Not Sure? Let Our Team Evaluate Your Policy — Free
Policies that seem borderline may still be worth a closer look. A free, confidential review gives you a clearer answer.
Try the life settlement calculator, learn about the life settlement process, or read our licensing and disclosures.