Ask the expert: is a $150,000 face amount too small?

The question was: I have a client who is age 66. He has decided to stop paying premiums on his $150,000 term policy. Could he possibly sell it in the secondary market or is the face amount too small?

The answer is: There is a market for smaller policies. Some life settlement providers like Coventry First have the ability to purchase policies with a minimum face amount of $100,000. Coventry First’s policy valuation process is expedited through a Simplified Settlement questionnaire, which the insured and owner sign verifying policy information and medical history.