Huge Market Available
To Buy

Life Policies

Life Settlements

What is a

Life Settlement?

Life Settlement is a process where a life insurance policy is sold to a third party for a single cash payment that is higher than the policy’s cash surrender value and lower than the death benefit. The new owner assumes all future premium payments and receives the death benefit upon the death of the insured person.

Who Are Buyers & Sellers of Life Policies?

Individual Owners of life policies may sell for various reasons:

A policy is not performing as expected

The premium becomes too expensive

Cash is needed for long-term care expenses.

The beneficiaries have changed and the policy is no longer necessary.

Corporate Owners of life policies may sell when:

A policy is no longer needed,

The premium has become too expensive.

Cash needed for debt reduction or other cash flow needs.

Institutional Buyers are generally looking for

Institutional Buyers are generally looking for convertible term policies and various permanent insurance contracts (universal life and whole life) with a death benefit of a minimum of $100,000. Preferred age of the insured person is 65+ years of age, or younger if health conditions are present.

Regardless of whether a policy is owned by an individual or corporation, the life policy must not be lapsed before the owner establishes the true market value of the policy.

How Do I Sell a Life Policy?

The timeframe to sell a life policy can run 45 to 90 days, depending on various factors.

A quick, confidential phone call is made to determine the type of life policy involved, the general age and health of the insured, and to verify the reasons and suitability for the sale.

A life expectancy report is ordered from a third-party vendor who is not associated with the purchase of the policy.

At the request of the buyer, specific life insurance illustrations are obtained from the insurance company.

Purchase forms are issued and signed by all parties.