(Related: Solving the Mystery of Term Life Settlements)
Until recently, it was almost impossible to get a life settlement offer unless the insured had some health issues which reduced the life expectancy. However, there is a fund that has developed a proprietary strategy that has made it possible to get life settlement offers on some healthy insureds that meet certain criteria.
- Minimum Age: Males 73, Females 75 (best chance 80-90 years old).
- Health: Good health, with no mental impairments.
- Policy Age: 5 or more years, occasionally less, but at least 2 years.
- Face Amount: $250,000 to $20,000,000.
- Policy Type: Almost any form of universal life.
- Policy Pricing (level premium illustration to age 105 required): Ages 80-85, premium under 4% of face; Ages 86-90, premium under 6% of face.
How do they do it? While they haven’t shared all the details of their proprietary strategy, we know that it requires a favorably priced policy and no medical records or life expectancy evaluations. The combination of a well-priced policy and reduced acquisition costs allow them to make offers on policies that others can’t. And, because of their simplified underwriting process, offers can usually be made within a few days.