Why can't I qualify for a life settlement?

Why Can’t I Qualify for a Life Settlement?

A life settlement can seem like a great way to get extra money on hand when you need it, in exchange for a life insurance policy you may not need anymore. But, as you might have experienced, it’s not always that simple. Most life settlement companies are extremely picky when it comes to whose policies they buy.


Aspen Life Settlements is here to pave the way for a new kind of life settlement available to even more people! (But more on that later!)


Why is it so Hard to Qualify for a Life Settlement?


Reviewing how a traditional life settlement works will help answer this question. Typically, a life settlement company will take a look at your policy and offer you a price for it based on the size of your death benefit, minus the predicted amount of premiums they can expect to pay, minus another chunk that they’ll make as a profit.


There are essentially two costs that the settlement company has to pay. First, some amount of money goes to you, the policyholder, in exchange for your policy and the death benefit that comes with it. The second cost is the cost of keeping the policy active–the premiums. If they buy the policy from you, but don’t pay the premiums, the policy lapses, and no one gets the death benefit. (Which would leave them having lost whatever they paid you.)


Life settlement companies only make their money back (from what they pay to you) when they receive the death benefit of your policy, which they get when you pass away.


So why is it so hard to qualify for a life settlement? Well, there may be life settlement companies willing to pay you the first cost in order to own your policy and cash in on your death benefit. But if you’re relatively young, healthy, and don’t have a shorter life expectancy, the second cost (paying the premiums to keep your policy active) is too high and will go on to make the settlement company’s return on investment smaller and smaller.


For this reason, life settlement companies are almost exclusively interested in buying the policies of those with shorter life expectancies. They can expect to pay out fewer premiums and make their return much sooner (and larger) than buying a similar policy from a younger, healthier person.


How can I Qualify for a Life Settlement?


The good news is, at Aspen Life Settlements, you don’t have to have a shortened life expectancy to be paid for your policy. We actually hope you live a long, healthy life!


While all of the other life settlement companies are focused on cashing in on your death benefit when you die, Aspen Life invests its money in a different way–through the cash value of your policy. This conservative place to store and grow money is perfect for our investment strategies, and is actually the only part of your policy that we’re interested in!


When you sell your policy to Aspen Life, we take over paying the premiums and use your policy’s cash value for our investments. The best part for you is that you get to keep your death benefit! Your beneficiaries, whether children, grandchildren, friends, or a favorite charity–will still get to be blessed by your generosity.


How do you qualify for a life settlement with Aspen? As it turns out, we’re interested in most whole life (and some IUL) policies–regardless of your age or medical condition!


If you’re looking for a way to get cash on hand without needing to give up your death benefit, you’re in the right place. (And in fact, maybe even the only place that this best-of-both-worlds opportunity is available!) Get in touch with Aspen Life Settlements today to see how much your policy is worth.

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