Selling a life insurance policy is called a Life Settlement, and it is a fairly simple process. A Life Settlement transaction is when the seller (the policy owner) transfers ownership and beneficiary rights of a life insurance policy to a buyer.
The former owner of the policy is no longer responsible for paying the premiums due on the policy and will receive a cash payout from the buyer once the Life Settlement transaction is complete. The new owner then assumes all future premium payments and any other costs associated with the policy.
The Life Settlement process takes approximately 45-60 days to complete, though it does vary from case to case.
There are 4 main factors that usually determine a policy’s eligibility and monetary value:
- Age of Insured – Life Settlements are generally for people aged 70 and older. However, if you are younger, you may still qualify.
- Health of Insured – Your health status will play a role in determining your eligibility for obtaining a life settlement.
- Policy Type – Universal Life, and Term policies that can be converted into Universal Life policies, are most frequently assessed for Life Settlements.
- Face Value – Policies with a Face Value of $100,000 or more are more likely to qualify for a Life Settlement. While there is a required minimum face amount, there is no upper limit. We have helped people with policies in the millions!
*Disclosure: The Life Settlement process takes approximately 45 – 60 days, though this timeframe varies per case.
*Please Note: Our services are not available to policies originated in New York, New Hampshire, and Florida at this time.
Here are some reasons why you might consider selling your policy:
- Many people find that as they get older, the cost of policy premiums get higher and become unaffordable. If you allow your policy to lapse (cancel it), you would receive nothing for it. If you surrender your policy to the insurance company, you might receive a small payout (using the Cash Surrender Value which may have accumulated over time), or you might receive nothing at all. Instead, if you choose to sell your life insurance policy, you could get a large lump sum cash payout!
- Another reason you may want to sell is if you no longer need the coverage. Perhaps you have achieved financial stability, paid off a mortgage and your children are grown. That’s great! What’s even better is that there are buyers out there who might be interested in purchasing your life insurance policy!
- All Convertible Term policies have a deadline by which to convert the policy into permanent coverage such as a Universal Life policy. Unfortunately, the premium cost of a Universal Life policy compared to a Term policy is normally much greater. You may be able to sell your Term policy, and the buyer would convert it and pay the new (more expensive) premiums.
And here are some of the benefits of selling your unwanted or unneeded life insurance policy:
- Take a dream vacation with your loved ones!
- Gain financial relief to focus on more important things!
- Receive money that is already yours, to allow you to do what’s important to you!
- Pay for health care or medical bills!
- Pay off your mortgage or debt!
- Give gifts to your heirs and be there to watch them enjoy it!
- Achieve financial freedom and enjoy your retirement!
- Have money to spend on that hobby you’ve always wanted to do!
- Have the financial ability to check items off your bucket list!
Assessment – A Client Questionnaire and Information Form will need to be filled out for us to collect preliminary information to better understand your personal situation. Disclosure Documents, including a HIPAA release, will need to be signed and sent back to us so we can take the next step.
Review – After all documents have been received, a licensed and regulated Life Settlement Provider, with which Esteem America has a Customer Referral Relationship, will review them and determine if your policy qualifies for a Life Settlement.
Offer – If the Provider determines that your policy qualifies for a Life Settlement, they will contact you directly with an offer to purchase your policy.
*Note: You are under no obligation to accept any offer(s) that may be presented to you.
Closing – Once you have accepted an offer, you will enter the Closing Process. You will receive a packet of documents which you will need to sign in order to receive your Life Settlement. These documents include a Letter of Competency which must be signed by a licensed physician of your choosing, Verification of Coverage from your life insurance carrier, and all forms required to legally transfer the Ownership and Beneficiary Rights on the policy.
Payment – Once all documents have been reviewed, signed, and returned, you will receive your Life Settlement! Payments will be made in the manner of your choosing: bank wire, paper check, etc.
Generally, your policy’s worth is determined by your age and health condition, the face amount of the policy, and the policy premiums.
These factors will all be determined once we receive permission to check into your policy, which begins by you answering some simple questions with us.
Once we have received this information, Esteem America will work very hard to ensure that you receive the highest possible settlement.