How It Works

The Life Settlement Provider will need information about you before making an offer. Usually it will take some preliminary information from you over the phone and the Provider would send paperwork for you to sign including but not limited to the following:
A medical release form so the Provider can receive and review your medical records; and
An authorization form to contact your insurance company to confirm benefits, premiums, and ownership of your policy.
In order to avoid delays, it is important that you give complete and accurate information about your medical history.
If you apply to more than one Life Settlement Provider, each Provider will contact your doctor for medical records and your insurance company for policy information.

The Life Settlement Provider uses the information it gets in the underwriting phase to make an offer. In order to develop an offer, a Life Settlement Provider takes into account various factors including but not necessarily limited to:
Estimated life expectancy and medical condition of the insured. Generally, the shorter the life expectancy of the insured, the more the Provider will offer for the policy;
The amount of life insurance coverage;
Loans or advances, if any, previously taken against the policy;
Amount of premiums necessary to keep the life insurance policy in force;
The rating of the issuing insurance company;
Prevailing interest rates; and
State laws, if any, that require a minimum payment.

If you accept an offer, a closing package is forwarded to you, the policy owner, for approval and signature. Closing documents typically include an offer letter, a Life Settlement Contract, and the forms the insurance company needs to transfer ownership of the policy to the Provider.
The closing documents are then returned to the Provider for its signature.
The Provider will put the cash payment owed to you in escrow, if required, and send the signed insurance change forms to the insurance company to record the change.

Once the insurance company notifies the Provider that the changes on the life insurance policy have been recorded, the payment is released to you, the policy owner, usually in the next few business days.