Do I Qualify for a Life Settlement?
Answer 6 simple questions to find out if your life insurance policy may be eligible for a life settlement. No personal information required.
Are you age 65 or older?
Most life settlement candidates are 65+. However, individuals aged 55–64 with significant health changes may also qualify.
Is your policy's face value $100,000 or more?
The face value (also called death benefit) is the amount your beneficiaries would receive. Policies under $100,000 rarely qualify due to transaction costs.
Do you have a whole, universal, or convertible term life policy?
Permanent policies (whole life, universal life, variable universal) are most commonly settled. Term policies can qualify if they are convertible to permanent coverage.
Have you experienced any health changes since purchasing your policy?
Health changes — such as a new diagnosis, chronic condition, or decline — often increase settlement value. Even managed conditions like diabetes or heart disease can qualify.
Are your premiums becoming difficult to afford, or is the policy no longer needed?
Common reasons include retirement on a fixed income, change in estate planning needs, loss of a spouse, or simply no longer needing the coverage.
Has your policy been active for more than 2 years?
Policies within the first 2 years (the contestability period) typically cannot be settled. After 2 years, the policy is generally eligible.
Life Settlement Eligibility Requirements
Life settlement eligibility depends on several factors that buyers evaluate when determining whether to make an offer on your policy. While every case is unique, the following criteria represent the most common qualifications:
Age
Most successful life settlements involve policyholders aged 65 or older. However, individuals between 55 and 64 with serious health conditions may also qualify. Age is a primary factor because it directly affects the buyer's expected holding period.
Policy Size
Policies with a face value of $100,000 or more are generally eligible. Smaller policies rarely justify the transaction costs involved. There is no upper limit — policies of $10 million or more are routinely settled.
Policy Type
Whole life, universal life, and variable universal life policies are most commonly settled. Term life policies can also qualify if they include a conversion option to permanent coverage before the term expires.
Health Status
Changes in health since the policy was issued often increase settlement value. Conditions such as cancer, heart disease, diabetes, COPD, or other chronic illnesses make a policy more valuable to buyers because of the shorter expected holding period.
Contestability Period
Your policy must be beyond the 2-year contestability period. This is the window during which the insurance company can void the policy. After 2 years, the policy is generally considered incontestable.
Premium Burden
If premiums have become unaffordable or the coverage is no longer needed, a life settlement provides a way to extract value from the policy rather than simply lapsing it or surrendering it for a fraction of its worth.
Common Eligibility Questions
Can I qualify if I'm under 65?
Yes, in some cases. Individuals aged 55–64 who have experienced significant health changes — such as a serious diagnosis or chronic condition — may still qualify. The key factor is life expectancy, not age alone.
Does my policy need to be fully paid up?
No. Policies with ongoing premium payments are eligible. In fact, many clients pursue a life settlement specifically because premiums have become burdensome.
Can I qualify if I've already been declined by another company?
Possibly. Different buyers have different criteria. A policy declined by one buyer may be attractive to another. Our network of 20+ institutional buyers means more chances to find a match for your specific situation.
What if I'm not sure about some of these questions?
That's perfectly normal. The best way to get a definitive answer is to request a free policy review. Our specialists will evaluate your specific policy and health situation at no cost and with no obligation.