How to sell a life insurance policy

The 4-Step Process

To sell an insurance policy, the first step is to review the terms of your insurance policy, gather your medical records, and find a Life Settlement firm that can help get you an offer. Offers will be based on the following items: Your cash needs, health and age of the Insured, the value (death benefit) of the policy, the type of insurance (whole life, term, universal) and features within the policy.

Shortcuts are costly. Skipping steps, which is common in the “fast estimate, immediate turnaround” game, results in less cash. Below is the 4-step process that we use to get the biggest payouts for our clients policies.

How It Works

You can sell one or multiple policies for cash or long term care.

Step 1: Qualify

Each situation is unique. In our conversation, we review the Insured’s health profile and basic facts about the policy or policies to be evaluated. We explain how many of the 6 Programs might work. Three Programs are for Insureds who might live as long as 23 years, and three are for those who probably have 24 months or less to live.

Payout choices may include: all cash now, some cash now and some benefit later, or payment of Long-Term Care costs instead of cash. Multiple policies could open the door to “Mix-and-Match” among the Programs.

Our goal is to tailor the outcomes as closely as possible to the Policy Owner’s needs.

Step 2: Apply - Our Guided Application Process

To deliver the most money, we utilize the full policy and medical underwriting approach used in this Industry since 1996. Essential premium illustrations are ordered from carriers as soon as the Policy Owner’s application arrives. An informal Medical Questionnaire suggests which medical records for us to buy in addition to any provided by the Policy Owner.

We send comprehensive instructions and forms by Email and follow with hard copies via FedEx along with prepaid airbills and packaging. Our clients only speak with a life settlements expert, who is available to answer any questions that may arise.

Step 3: Get Bids - Receive Competitive Offers

Once the application is complete, the policy is shared with a number of Funders appropriate to the case. We typically share a case with 5-20 different funders.

Each Funder has guidelines for buying policies based on multiple factors and realizes that their competitors are being canvassed simultaneously. The Funders advertising on TV are included.

To make the highest offers, Funders expect us to deliver medical records covering the past five years. To know with greater precision how long an Insured might live, professional Life Expectancy Reports may be purchased to augment their in-house medical and actuarial resources.

Bidding and re-bidding among the Funders yield the best results for our clients.

Step 4: Get Paid

When the Policy Owner agrees to the best offer, the winning Funder sends a contract for review, execution, and return by a specified date certain along with the original policy or its duplicate. Once that is done, the Funder sends the carrier Change of Ownership and Change of Beneficiary documents.

After the carrier has notified the Funder that these changes have been made, the Funder transmits funding by Fedwire or overnight check within 2 to 3 days depending on state regulations.

Most states have a Rescission Period as outlined in the application and fully detailed in the contract. Rescission allows the Policy Owner to return the Settlement funds within a set number of days, usually 10 to 15, in exchange for the policy’s return.

Should the Insured die during Rescission, the full death benefit will be paid after the Settlement money is returned. This is a consumer protection feature not found in the sale of stocks and bonds, for example.

Are there alternative ways to sell an insurance policy?

Yes. The 4-step process above describes the simple sale of a single policy. There are many variations.

To get all the options on the table, our team recommends submitting all policies at the same time including Survivorship and Company-owned, even if there are no plans to sell them. Remember: There is no obligation to sell even if a policy is submitted for a sale.

Example 1: The Policy Owner of a Convertible Term policy may elect to keep a portion as-is and sell the rest to the Funder.

Example 2: After transacting an Accelerated Death Benefit, the Policy Owner might prefer to stop paying full premiums on the reduced policy and, if possible, cash out the remainder for a Viatical Settlement, Long-Term Care Life Settlement, or Retained Death Benefit Life Settlement.

We handle the details so you don’t have to.

Get Started

Call or fill out or form to get a quote started, or just discuss your situation.
(888) 247-3659
Weekdays 8:30 am – 8:30 pm Eastern Time

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