A life settlement provider uses a formula that calculates risk and return for all policies that they review. Although this answers the question posed it does not fully explain the pricing of the policy.
In actuality a life settlement provider takes into account three things when pricing a viatical or senior settlement. We will be looking at the first part of this today, “The Policy”. The initial review is of the life insurance policy itself. The life settlement provider looks at the face amount of the policy versus the premium amount of the policy.
The other factor that they look at regarding the policy is the cash value of the life insurance policy. If there is a cash value the life settlement provider funder can use that value to reduce the amount f premium required for the policy on an annual basis as well as use that amount to increase the offer they were looking at giving on a policy. This can help increase the marketable value for your policy in the
viatical and senior settlement market place.
You can use the fast, easy, and free LIVEpdq tool to get a ballpark estimate of what a life settlement provider might offer for your policy.