Life Settlement Articles

Here is a great Life Settlement Article about the whole Life Settlement Process.

The Life Settlement Process & Timeline

STEP 1
Policy owner or their representative requests a Life Settlement Application Packet by a Life Settlement Broker or Life Settlement Company.

STEP 2
The application is completed along with the requested authorizations. The application includes authorizations to collect medical records and up to date information from the applicant’s insurance carrier about the policy to be sold.

STEP 3 (approximately 3 weeks)
The Life Settlement Firm collects needed information including attending physician  statements, insurance policy copies and illustrations, etc. for review.

STEP 4 (approximately 2 weeks)
After obtaining all medical records, the Life Settlement Firm will order the appropriate life expectancy reports (LEs)

STEP 5 (approximately 2-3 weeks)
The information is submitted to funding organizations to obtain the highest bids possible. Settlement offers are relayed to the policy owner or their representative for acceptance.

STEP 6 (approximately 1 week)
Upon acceptance of an offer, contracts and insurance policy change of ownership documents are forwarded to the policy owner or their representative for review and signatures.

STEP 7 (approximately 2 weeks)
The signed documents are returned to the funding organization. The documents are then forwarded to the insurance company to record the change of ownership.

STEP 8 (approximately 1 weeks)
Upon written verification that changes of ownership and beneficiary have been recorded, settlement funds are wire transferred into the account designated by the policy owner (seller).

At this point the seller has 15 days to change his or her mind and cancel the Life Settlement transaction.

The whole process typically takes 10 to 12 weeks to complete, depending on how long it takes to receive documents such as physician statements or insurance company illustrations or change of ownership.