Not every policy or policyholder qualifies. Learn about the key eligibility criteria — age, policy type, face value, and health status — that determine whether a life settlement makes sense.
The Core Eligibility Criteria
Life settlements are not available to everyone, and not every policy qualifies. Buyers look for specific characteristics that make a policy attractive as an investment. Understanding these criteria will help you quickly assess whether a life settlement is worth exploring.
Age
Most life settlement candidates are age 65 or older. The older the insured, the more valuable the policy tends to be on the secondary market. If you're 70+, you're in the sweet spot for the highest settlement ratios.
Policy Type
Universal life, whole life, and convertible term policies are the most commonly settled. Even group policies and survivorship (second-to-die) policies may qualify in some cases. If you're unsure what type of policy you hold, our team can help you figure it out.
Face Value
Most buyers require a minimum face value of $100,000, though policies of $250,000+ typically attract more competitive offers and multiple bidders. Larger policies simply represent more value to institutional buyers.
Health Status
Counterintuitively, a decline in health can increase your policy's life settlement value. Conditions like diabetes, heart disease, COPD, or cancer make the policy more valuable to buyers because the expected holding period is shorter. That said, you don't need to be in poor health to qualify — many healthy seniors age 75+ receive strong offers.
Premium Burden
If your premiums have risen and the policy is in danger of lapsing, that's actually a signal that you should explore a life settlement rather than surrendering the policy for a fraction of its value.
What Doesn't Disqualify You
Many people assume they won't qualify when they actually do. Having taken a policy loan, having a graded death benefit, or having a policy that's been in force for only a few years doesn't automatically disqualify you. Some states do restrict sales in a policy's first two years — Arizona, for instance, with exceptions for events like retirement, divorce, or serious illness under A.R.S. § 20-3211. It's always worth checking.
Five Signs Your Policy Might Be Especially Valuable
We've identified five clear indicators that your policy could be worth more than you think. If even one applies to you, it's worth getting a free evaluation.
How to Find Out If You Qualify
The fastest way to see if you qualify is to use our free policy estimator. It takes just a minute and gives you a preliminary range. For a more detailed evaluation, schedule a free call with Michael — he'll walk you through everything with zero pressure.
To understand what is a life settlement and how the full process works, explore our other guides.
This content is for informational and educational purposes only and does not constitute financial, legal, or tax advice. Every life settlement transaction is unique. Consult a licensed professional for advice specific to your situation.
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