In order to ensure the financial security of your family and your loved ones after your death, you make a life insurance policy. But sometimes people feel an emergency to sell their policy to get money out of it. In that case, you can sell your policy but you may think that whether you are eligible for selling your policy or you may be curious of knowing the worth of your policy. To get the answers to these questions, it will be best for you to get through a “life settlement calculator”.
What is a life settlement calculator? –
You may wonder what this life settlement calculator is and how to use it? We would suggest that if you are thinking of selling your policy to get funds, then before going to any life settlement agency, check your eligibility and worth of your policy from this calculator. Life settlement calculator is the tool that can give you quick solutions to your queries. Though we cannot compare this method with the underwriting process that gives an accurate estimation of a policy, it is easy to access and can quickly give you general knowledge regarding your policy. It will help you to know about the types of policies that will get qualified for life settlements.
How to use a life settlement calculator? –
This tool is easy and convenient to use. It will ask you some questions that you need to answer correctly. The following questions can be asked for calculating your policy –
- What is your age?
- Whether you are male or female?
- What is your health condition like good, excellent, average, or poor?
- How large is your policy i.e. the death benefit?
- What type of policy do you own?
- Do you have any loans against your policy?
- What is the age of your policy or how long you have used the policy?
- What premiums are paid annually?
Eligibility Factors for Life Settlement –
There are some factors that detect whether you are eligible for a life settlement and these factors are –
Age – According to the traditional life settlement rule, you must be 65 years old but most of the settlement companies and agencies look for someone of age 70 or older. This is because older persons have lower life expectancy, so older people get higher policy value.
Health – Your health status is another key factor to figure out your eligibility for selling a policy. The value of your policy depends on how challenging your health condition is like whether you have a good, excellent, average, or poor health condition. If your condition is more critical then you will get more value for your policy.
Size of the policy – The value of a policy depends on the size of the policy. If your policy is large i.e. more the death benefit, the more will be the price of the policy.Type of the policy – The universal life insurance policies are known to be the most valuable. There are other policies like whole life or term life insurance that are also valuable.