Qualification Requirements

The qualifications for a life settlement transaction differ from provider to provider in much the same way as the underwriting criteria for life insurance companies. Table ratings and life expectancies can differ from carrier to carrier.

In order to save valuable time for the policy owners and their agents, Welcome Funds Inc. underwrites each case in-house and also obtains an independent life expectancy review. Once this process is completed, the life expectancy and insurance parameters are matched to the various requirements of the providers. By working with all the providers in our extensive network, we have the ability to match each case to the best source, optimizing our clients’ settlement proceeds.

Please find below the following: 1) summary of the industry's standards of qualification for a Life Settlement; and 2) a Life Expectancy Chart to provide an estimate of projected mortality for an insured.

These guidelines are general industry parameters that combine each provider’s purchasing criteria that Welcome Funds Inc. has worked with over the years.

Life settlement - qualification guidelines

1. Life Insurance:
• Policy must be at least two (2) years old - only non-contestable life insurance policies are considered.
• Life insurance carrier must be rated B+ or better.
• Minimum face value of $100,000 - NO Maximum. Lower face values considered if insured has shortened life expectancy.
• All types of policies qualify, including term, whole life, universal life, joint-survivorship, group, corporate-owned policies (COLI), key-man, and life policies held in irrevocable life insurance trusts.
• Policy Owner may be the insured, a company, a family member, a charity or any other entity with an insurable interest in the life of the insured.
• Yearly premiums should generally be under five percent (5%) of the policy's face value.
2. Insured's Health Status:
• Seniors with limited life expectancies of fewer than twenty (20) years may qualify.
• There must be a change in health or in table rating since the policy was issued.
• The general target age is seventy five (75) and above.
• Copies of medical records are obtained for verification of health status.
• NO MEDICAL EXAMS ARE REQUIRED!

Detailed Explanation of Health Guidelines:

Health qualifications for a Life Settlement are based upon the insured's life expectancy estimates. Life expectancy is determined by independent reviews of the insured's medical records by third party medical underwriters. The underwriters provide individual life expectancy opinions based upon statistical data combined with the insured's medical history. These estimations can vary significantly due to differing opinions on treatments, prognosis and future medical advances. Due to these factors, varying offers extended by Life Settlement providers is very common.

Please review the chart below for life expectancy estimations.

Life expectancy chart

1. THIS IS NOT AN OFFICIAL UNDERWRITING MODEL
2. THIS CHART IS ONLY TO BE USED AS A GENERAL GUIDE TO ESTIMATE LIFE EXPECTANCY
3. POSSIBLE LIFE SETTLEMENT QUALIFIED LIFE EXPECTANCY RANGES IN YEARS ARE HIGHLIGHTED IN GREEN
4. BASIC/SIMPLISTIC DEFINITIONS:
   
   STANDARD = ABOVE AVERAGE HEALTH
   RATED = AVERAGE HEALTH
   HIGHLY RATED = BELOW AVERAGE HEALTH
   UNINSURABLE = POOR HEALTH

What Is The Next Step?

1. Return to our Home Page.
2. Learn more about Life Settlement Process.
3. Review the qualification requirements for a Life Settlement.
4. Read the most frequently asked questions on Life Settlements.
5. Analyze the tax implications of a Life Settlement.
6. Examine some recent Life Settlement Case Studies.
7. Request our Free Educational Package or visit our Download Center!