How Do Life Insurance Settlements Happen?
Once a potential client (or a professional on their behalf such as a financial advisor, attorney or CPA) contacts one of our representatives or our office we initiate a very efficient and organized process to address the possible life insurance settlement.
The initial step is to perform a preliminary analysis to determine whether it is worthwhile for the client to pursue a life settlement. In order to perform such an analysis, we collect three things from the client. First, we ask for copies of the life insurance policy and all related documentation the client received when purchasing the policy. Second, we have the client sign a release of information form that allows us to communicate directly with the life insurance carrier, primarily to request and obtain an “in force analysis” which detail the amount of premiums required to keep the policy in force through various ages. Third, we work with the client to fill a prequalification form.
With this information, we are able to research the potential viability of a life settlement and a range of value that an auction/sale of the policy would bring from potential buyers. We can then discuss the results of the first step analysis and determine whether the client wants to proceed with the process.
If the client desires to proceed, we then work with the client to fill out a formal life settlement application and also obtain the necessary releases from the client to collect medical records. We proceed to then obtain the medical records and have an outside source perform a life expectancy calculation on the insured.
Once step two is completed, we are then ready to submit the client’s information to the potential purchasers of the policy. Step three is then the actual auction of the policy to purchasers in order to maximize the market value of the policy and put as much money in our client’s pocket as possible.
Once the auction and sale of the policy occurs in step three, then step four is the post auction phase where the necessary documentation is prepared to assign the policy and a closing occurs when the money is paid.
A typical timeline for a life settlement from steps one through four is 8-10 weeks.
We are very experienced in the above process and our internal policies and process is designed to best serve our client and produce the desired results.
Thinking of considering a life settlement? Call us today!
Dan A. Penning
Life Settlements Specialist
Professional Life Settlements Plus
