I'm 54 years old. Can I sell my life insurance policy?Blog added by Erez Rotem on June 26, 2014
Erez Rotem - Goldenbridge

Erez Rotem

Summit, NJ

Joined: November 19, 2012

I often get inbound calls from people asking if they can sell their life insurance policy. As a salesperson, you're probably thinking, "Wow, that's awesome. I wish somebody would call me."

Well, it's not so awesome. For some reason, the people calling in always seem to be in their 50s and 60s. I think the general public doesn't understand what the life settlement market is looking for.

I don't blame the public for not understanding. It's not something they think about everyday. Typically, the life settlement market works for people in their late 70s and older, or people who have life-threatening medical conditions. These people tend to have shorter and more certain life expectancies than, say, a 50-year-old would have. Generally, a fund that buys life settlements is looking to make a double-digit return for their investors, and they are looking to make it quickly (or as quickly as possible). The investors of the funds don't want to wait 15 years to make these returns, so that requires the fund to look for people who have shorter life expectancies. Rarely, the investor is willing to wait 10 years to get his return, but they still want their double-digit return.

When you look at the compounding effect of money over time, you can see that at 10 years or longer, it becomes harder for the fund to generate those double-digit returns for the investor. Therefore, the market is looking for people who are older and/or have serious medical issues. Click here for a video I did explaining what the market is looking for.
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