What is a Life Settlement?
A Life Settlement is an agreement between a policyholder and a financial institution. In this agreement, the policyholder sells the policy ownership rights to the financial institution for a cash payment. The cash payment will always be more then the cash surrender value of the policy (less any outstanding loans).
Who is a Good Candidate?
The Life Settlement market focuses on senior citizens, who have life insurance policies that they no longer want, need, or can afford. Ideal candidates are generally age 65+, or those who have retired early.
What Type of Life Policies Apply Here?
- Universal Life
- Term Life
- Whole Life
- Joint Survivor Life
- Variable Life
- Key-Man/Corporate Policies
What is the Procedure to Get This Started?
The procedure is very easy. Upon completing a very simple application, and providing a photocopy of your current life policy, your information is sent to a Settlement Clearing House. Here, your information and policy are carefully reviewed. Upon underwriting review and approval, your policy is then presented to a group of financial institutions, where a series of 2 pricing negotiations occur. A top offer is generated. Upon acceptance of an offer, funds are placed into an escrow account. Change of ownership and beneficiary forms are completed. Funds are wired into your account ( 1-3 days)
How Long Will This Take?
The entire process, after your initial application is received, generally takes between 10 to 15 weeks. You need to know and accept this from the beginning. Please plan accordingly.
