February 3rd, 2020
One of the most common questions people ask when they begin considering a Life Settlement is “What is my policies cash value?”
It’s a simple question, and it makes sense that a policyholder would want to know how much cash to expect from their policy prior to starting the 30-60 day Life Settlement process. There are generally accepted rules of thumb when it comes to Life Settlement qualification. If you are over the age of 75, there is a good chance you are going to qualify for a Life Settlement. If you are between the ages of 65-75 and in overall below-average health you will likely qualify as well. Under the age of 65, you may still qualify but your health must be critical. Life Settlement companies often work with clients under the age of 65 that suffer from diseases like Cancer or ALS.
Unfortunately, even if you qualify, there isn’t a simple answer to the policy cash value question. Life Settlements are based on a number of factors and policy cash value is difficult to accurately predict without receiving the policy holder’s medical information. Most Life Settlement companies try to avoid offering up any predictions without medical records or an in-depth interview.
Pricing a Life Settlement accurately requires complex underwriting and advanced data tables, it’s not something that can be done without receiving the proper information. Settlements can range from 10% all the way up to 80% depending on the individual. With the complexity of the pricing, and the broad range of possible settlement values, you can see why giving an estimate can be irresponsible. The last thing any Provider wants to do is under or over quote you off the bat.
Life Settlement companies that make offers without first interviewing the client or ordering their medical records are often looking to short change policyholders. You should never accept an offer without being given a proper interview. Most importantly, if you feel a company isn’t entirely worthy of your trust, don’t work with them. The Life Settlement industry is heavily regulated and most companies working within it maintain strict standards, don’t settle for a bad experience.
To boil a simple question down to a simple answer…Your policies value is contingent on the information you give to your Life Settlement company.
Want to find out the value of your life insurance policy? Fill out our One-Step Life Settlement Qualifier to start the process!