I'm 54 years old. Can I sell my life insurance policy?

I often get inbound calls from people asking if they can sell their life insurance policy.
As a sales person your'e probably thinking "Wow that's awesome.  I wish somebody would call me".
Well its not so awesome.
For some reason the people calling in always seem to be in their 50's and 60's.
I think the general public doesn't understand what the life settlement market is looking for.

http://insurancestudies.org/wp-content/uploads/2010/05/ISI_2009_Consumers_Guide_to_LS_full1.pdf
Here's a good piece for some general information
.
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 70's 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.

(Article on the Effect of Compounding -http://www.investopedia.com/walkthrough/corporate-finance/3/discounted-cash-flow/compounding.aspx)

Therefore the market is looking for people who are older and/or have serious medical issues.

Heres a video I did explaining what the market is looking for

http://youtu.be/jVhfPnS75-U


Please feel free to share this and
let your older friends know that before they think about lapsing their policies they should look at the life settlement option.