One of the questions most often asked is, which life settlement insurance policies are the easiest to sell? Assuming that a seller is above age 70 and not in perfect health, these are a few things to look for when thinking about a sale.
1) Policies that do not have a large cash value. If the contract does have a large cash value it is usually advisable to take that cash out of the contract before the sale is made.
2) A policy with a death benefit (face amount) greater than $250,000. The settlement process is time consuming and smaller are policies generally not profitable enough for a buyer to spend a great deal of time on. There are, however, exceptions to this rule.
3) Non-variable universal life contracts. Variable life contracts are investments that come under the control of the NASD. There is a market, but they require special licensing and they are more difficult to administer.
4) Contracts on a single life. Joint life policies require two people to die and have limited appeal to the settlement market. There are brokers who will buy these contracts, but they are priced accordingly.
5) Term insurance that is convertible to permanent insurance at a favorable rate, or term that has a significant numbers of years left under its current preferred or standard premium.
6) Corporate owned contracts like Key-man or deferred compensation, where the retiring employee has the right to purchase the contract and has no need for the insurance can qualify as life settlement insurance policies.
All of the above are examples of life settlement insurance policies being considered by settlement brokers. If you have life settlement insurance policies and you need more information, please click on the LIVEpdq.