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January 13, 2020 at 06:55 PM
(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.
The parameters:
- 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.
Robin S. Weinberger, CLU, ChFC, CLTC, is the director of national accounts for Life Insurance Settlements Inc. She has been a general agent and director of national accounts for Connecticut Mutual and vice president of marketing for Sun Life of Canada. She can be reached at 
Peter N. Katz, JD, CLU, ChFC, RICP, is a life settlement broker and co-director of national accounts with Life Insurance Settlements Inc. He is also a consultant specializing in life insurance advanced sales illustrations, and he has served as an advanced markets attorney and in product development. He can be reached at 