Exploring a life settlement begins with understanding your policy, your needs, and your options. You do not have to decide to sell simply because you request information.
I can help you get started and connect you with appropriately licensed life settlement professionals who handle the evaluation and transaction.
Step 1 — Discuss Your Needs and Options
If your life insurance policy is no longer needed, wanted, or affordable, a life settlement may be worth exploring. The first step is to review your situation and consider whether evaluating the policy for a possible sale makes sense.
Step 2 — Complete the Application and Authorizations
If you plan to proceed with your policy evaluation, the settlement team will explain the application and authorization forms. These allow the team to request the policy information and medical records needed for an evaluation.
Step 3 — Evaluate the Policy
The team reviews the policy’s financial characteristics and information about the insured’s age and health. If additional medical records and or Life expectancy reports are needed, they will be ordered and paid for by our team.
This review helps determine whether the policy may attract buyer interest. An initial estimate is not a guaranteed offer.
Step 4 — Seek Offers from Buyers
If the policy is suitable for the market, the licensed settlement professionals present it to prospective buyers and seek competitive offers.
Any offers received are reviewed with you, including applicable fees and the amount you would receive.
Step 5 — Decide Whether to Proceed
You decide whether to accept an offer. You are under no obligation to sell simply because your policy has been evaluated or offers have been obtained.
Before accepting, review the proposed sale with your financial, tax, or legal advisers as appropriate.
Step 6 — Complete the Closing Documents
If you accept an offer, the settlement team coordinates the required documents, signatures, and ownership-transfer process.
The team will explain how funds are held and released, along with any applicable cancellation rights.
Step 7 — Receive the Proceeds
Once the required closing and transfer conditions are satisfied, the sale proceeds are released to the seller according to the transaction terms.
The buyer becomes the policy’s new owner, assumes responsibility for future premiums, and receives the death benefit when the insured dies. Your previous beneficiaries will no longer receive that policy’s death benefit.
Important Considerations
A life settlement is not right for everyone. Selling your policy may have tax consequences, affect eligibility for needs-based public benefits, and affect your ability to obtain life insurance in the future. Consider your ongoing need for coverage and discuss the implications with your advisers before proceeding.
This overview describes a general process. Requirements, timing, and cancellation rights vary by state and transaction.