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Life Settlements
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Qualification Requirements |
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The qualifications for a life settlement transaction differ from purchaser to purchaser
in much the same way as the underwriting criteria for life insurance companies.
Table ratings can differ from carrier to carrier and so can a life expectancy in
this business.
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In order to save valuable time for the policy owners and their agents, Mountain
Financial underwrites each case in–house and also obtains an independent life
expectancy review. Once this process is completed, the life expectancy and insurance
parameters are matched to the various requirements of our multiple funding sources.
By working with every funder, Mountain Financial has the ability to match each case
to the best funding sources and ensure that all of our clients receive the highest
possible settlements.
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Below are summaries of the industry's standards of qualification for a Life Settlement
and a Life Expectancy Chart to provide an estimate of projected mortality for an
insured.
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Life Settlement – Qualification Guidelines |
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- Life Insurance:
- Policy must be at least 2 years old – only non–contestable life insurance
policies are considered.
- Life Insurance Carrier must be rated B+ or better.
- Minimum face value of $100,000 – NO Maximum. Lower face values considered
if insured has shortened life expectancy.
- All types of policies qualify, including term, whole life, universal life, joint–survivorship,
group, corporate–owned policies (COLI), key–man, and life policies held
in irrevocable life insurance trusts.
- Policy Owner may be the insured, a company, a family member, a charity or any other
entity with an insurable interest in the life of the insured.
- Yearly premiums should generally be under 5% of the policy's face value.
- Insured's Health Status:
- Seniors with limited life expectancies of under 12 years may qualify.
- There must be a change in health or in table rating since the policy was issued.
- The general target age is 75 and above.
- Please do not believe some ill–informed agents or brokers, healthy seniors
do not qualify. Some type of health issues that limit the insured's life expectancy
must be present.
- Copies of medical records are obtained for verification of health status.
- NO MEDICAL EXAMS ARE REQUIRED!
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Detailed Explanation of Health Guidelines |
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Health qualifications for a life settlement are based upon the insured's life expectancy
estimates. Life expectancy is determined by independent reviews of the insured's
medical records by third party medical underwriters. The underwriters provide individual
life expectancy opinions based upon statistical data combined with the insured's
medical history. These estimations can vary significantly due to differing opinions
on treatments, prognosis and future medical advances. Due to these factors, variances
in offers made by Life Settlement Funders is very common.
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- Please review the chart below for life expectancy estimations.
- This chart is for informational purposes only and is provided to give an understanding
of insured's health and life expectancy estimates that are required for qualification
for a Life Settlement.
- The highlighted ages may qualify based upon health status.
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Male (Non–Smoker)
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65 |
20 |
15 |
9 |
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70 |
16 |
11 |
7 |
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75 |
12 |
8 |
4 |
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80 |
9 |
5 |
2 |
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85 |
6.5 |
3.8 |
1 |
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90 |
5.4 |
2.7 |
<1 |
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Female (Non–Smoker)
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65 |
23 |
18 |
12 |
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70 |
19 |
14 |
10 |
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75 |
15 |
10 |
6 |
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80 |
11 |
6 |
3 |
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85 |
7.9 |
4.8 |
2 |
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90 |
5.9 |
3.8 |
1 |
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