Qualification
Do I Qualify for a Life Settlement?
Most seniors 65 or older with a policy of $100,000 or more qualify for a life settlement. Here is the checklist buyers use, including the things that can disqualify a policy.
The Life Settlement Qualification Checklist
Buyers weigh three things above all: the insured's age, the size of the policy, and the policy type. Health and circumstances round out the picture. Here is the full checklist.
Age 65 or Older
The insured person (the person covered by the policy) is typically 65 or older. Buyers price life settlements based on life expectancy, the older the insured, the higher the offer is likely to be.
Policy Face Value of $100,000+
Most buyers look for a death benefit of at least $100,000. Policies with $250,000+ in face value attract the most competitive bidding and typically result in higher payouts.
Universal Life, Convertible Term, or Whole Life
Universal life and convertible term policies are most commonly sold in the secondary market. Whole life policies may also qualify. Not sure about your policy type? See how each policy type sells.
Any Change in Health
A health change since the policy was issued, even a manageable condition like diabetes or heart disease, can significantly increase your policy's market value. If the insured is seriously or terminally ill, a viatical settlement may pay even more.
Policy No Longer Needed
Children are grown. The mortgage is paid off. Your spouse has passed. There are many reasons a policy you once needed no longer serves its original purpose.
Premiums Have Become Unaffordable
If premiums have become hard to keep up with, you have several options. A policy headed for lapse can still hold real market value, so see your options when premiums become unaffordable before you cancel anything.
You do not need to check every box. If the first three describe you, it is worth asking. Even one strong factor, like a large policy or a health change, can be enough.
What Can Disqualify a Policy?
Most of these show up in the first few questions, not after weeks of paperwork. These are the most common reasons a policy does not qualify, and what you can still do about each one.
The insured is under 65 with no change in health
Buyers price offers on life expectancy, so younger sellers in good health rarely receive offers. The exception: a serious or chronic health condition can qualify a younger policyholder, usually through a viatical settlement.
The face value is under $100,000
Most institutional buyers set their minimum at $100,000. A few consider smaller policies, so it can still be worth asking, but offers below that line are uncommon.
The policy is less than 2 years old
Most states require a policy to have been in force about 2 years, matching the contestability period, before it can be sold, with limited exceptions. If your policy is newer, the usual answer is to wait, not never.
It is standard term with no conversion option
A term policy that cannot be converted to permanent coverage, or whose conversion window has already passed, usually cannot be sold. If your term policy still has its conversion right, that is a different story: see when a term policy can be sold before the deadline passes.
The cash surrender value is close to the death benefit
When a policy's cash value has grown close to its face value, a buyer has little room to offer more than the insurer already would. In that case, surrendering can genuinely be the better deal, and we will tell you so.
Not sure which side of the line you're on? Submit an estimate with what you know, and a broker will check your policy against this list.
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Check If Your Policy Qualifies
The estimate takes a few questions, and there is no medical exam. If you are not certain about a detail, submit what you know.
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Reviewed by your broker, not a call center
A licensed broker looks at your policy details and represents you, the seller, never the buyer.
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What happens next
You hear back, typically within one business day, with next steps or the reasons a policy does not qualify.
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There is no charge for the estimate, and nothing moves forward unless you choose to.
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(321) 270-0279Qualification Questions, Answered
What are the requirements for a life settlement?
The core requirements are the insured’s age, generally 65 or older, a policy with a face value of $100,000 or more, and a policy type that can be sold, such as universal life, whole life, or convertible term. A change in health since the policy was issued strengthens your case, but it is not required.
What disqualifies a policy from a life settlement?
The most common disqualifiers are an insured under 65 with no significant health change, a face value under $100,000, a policy that has been in force less than about 2 years, and standard term coverage with no conversion option. Several of these have exceptions, so it is worth asking before you assume your policy does not qualify.
How long does a policy need to be in force before it can be sold?
In most states, a policy needs to have been in force about 2 years before it can be sold. This matches the contestability period written into most policies, and some states allow limited exceptions. If your policy is newer than that, the usual answer is to wait, not never.
Is there a minimum age to qualify?
Most buyers look for an insured who is 65 or older, and offers generally strengthen with age. Policyholders under 65 can qualify when there is a serious or chronic health condition, usually through a viatical settlement.
Is there a minimum policy size to qualify?
Most buyers set their minimum face value at $100,000. Policies of $250,000 or more tend to attract the most competitive bidding, and a few buyers will consider smaller policies.
Can I qualify if my health has not changed?
Yes. A decline in health since your policy was issued usually increases what buyers will pay, but many policies qualify on age, policy size, and policy type alone. You do not need to be ill to ask.
Have a question that isn't about qualifying? See the full FAQ, or read the complete guide to selling your life insurance policy.
Reviewed by Jeff Hallman, licensed life settlement broker at Citizens Life Group. Last reviewed July 10, 2026.