The Life Settlement Application Process

Broker Your Unwanted Life Insurance Policy

Get FREE Quotes and Find Out if it is the Right Action for You

* Life Insurance Policy Type:
* Face Amount (Death Benefit):
Call Us

All About Life Settlements

Learning Center

Most Popular

Most Recent

Recent Answers

The Life Insurance Settlement Application Process has six steps
Six Steps to a Life Settlement Application...

Not all Life Settlement transactions will work the same way, but a typical scenario might take between three to five months – depending on how quickly you can provide complete information to the broker – and include the following steps:

  1. You Express Interest: You contact a Life Settlement broker to express your interest.

  2. Prequalification: The broker should be able to quickly assess your eligibility for a Life Settlement using self reported information. The following criteria may be used to determine eligibility:

    • Your age and your self-reported health status

      Typically, most Life Settlement candidates have a life expectancy of about 12 years or less. But determining life expectancy is far from an exact science and is based on averages. However, it is important to understand that the older you are and the poorer your health, the more money that will likely be available to you from any Life Settlement.

    • The type and value of the life insurance policy you have

      Life Settlements can be negotiated for most types of Life Insurance policies including term life, universal life, whole life, variable life and joint survivorship policies. If you have a Term Life Insurance policy, it must be convertible to qualify. Convertible means that you can change the policy to universal or whole life.

  3. Applications Are Completed: You complete all necessary applications and provide information and authorization for collection of personal medical and insurance information. It is important that you confirm that the broker you use obtains your personal information with signed authorizations. Your right to privacy and security is important in this process.

    Your medical records will be evaluated, but no physical is required.

  4. Information is Packaged and Distributed to Buyers: The broker will then summarize your information, gather additional data from your doctors and insurance carrier and distribute this information to qualified buyers with a deadline for their offers.

    As stated before, in order for you to be assured of the best offer on your policy and good servicing, it is important for you to work with a broker who is getting multiple bids from institutional investors.

  5. Offer Presentation: Your broker will analyze all offers, keep you informed of progress, discuss options and present to you the best proposal.

  6. Closing: The closing process will then take place when documents are presented by the buyer and seller, disclosures are made and monies are escrowed.