The Life Insurance Settlement Process
If you are sitting with a life insurance policy that no longer meets your needs, you may want to consider a senior life settlement.
According to the Life Insurance Settlement Association (LISA), a life insurance policy is one of the most valuable assets many people own. In the past, life insurance companies were the only buyers of these assets. During that time, policy holders interested in getting rid of their policies found that the only way to do so was to surrender it for cash value set by the insurance company.
Today, the secondary market makes it possible for people to sell their life insurance policies through life settlements and receive three to four times the amount of the policy's cash surrender value.
The ideal candidate for a life settlement is an insured who is 70 years of age or over, has a life expectancy of less than 12 years, and has owned a life insurance policy with a face value of $250,000 or more. If you're a possible candidate for life settlements, the process typically takes four to six months to complete.
The first step is to choose proper representation. Next, fill out an application and provide proper documentation, including policy copies and medical records. After you have submitted an application, the settlement company will send the information to an independent life expectancy company for review.