Sell My Life Insurance Policy

End of year, it is time to start thinking about your cash needs for 2009. Why not sell my life insurance with us?

If you die at any time up to the 15th day after you receive the money from the
provider, the settlement contract will automatically cancel. The provider will pay the
owner of your policy or beneficiaries designated by the owner in the life settlement
contract any proceeds it receives from your policy, minus any money it already paid
for the purchase of your policy and any premiums it paid to the insurance company to
keep your policy current. The insurance company or the provider should refund any
unearned premiums paid.

Please take the time to interact with us. We would love some feed back that is why we put this insurance blog for senior settlements together. There are many ways that one can interact. You can call us, email us or comment on our blogs. Life settlements are fascinating and we love the industry that is why we are involved in it. Please drop us a line.

Here is a great definition of what a life settlement really is.

A life settlement is the sale of a life insurance policy or certificate issued on the life of a person, who does not have a catastrophic or life threatening illness or condition that is likely to result in death within twenty four (24) months, for a dollar amount that is less than the policy’s face value. The person who is insured under the policy is called a life settlor. This person may or may not be the owner of the policy. Only the owner of the policy has the right to sell the policy. If you do not own the policy, the owner cannot sell the policy without your consent. The entity that buys the policy is called a life settlement provider, additionally, there are persons called brokers or provider representatives, who help with the sale of the policy. A life settlement offers you the opportunity to receive a portion of your policy’s death benefit while you are still alive.

Here is a google result for the term itself -  Have a look  -  http://www.google.com/search?q=life+settlements&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official&client=firefox-a

Did You Know?

Each year in the United States, life insurance policies valued at roughly $1.5 trillion either lapse or are surrendered by the policyholder.

Are these viatical settlements? Not really, Viatical settlements are typically for individuals who are near death. Life Settlements are a great opportunities for seniors to cash in on their unused policies.

Here are the steps in a Steps in a transaction

1. Policyowner consults with an advisor, decides to sell his or her policy.
2. Policy owner and advisor decide whether to work with broker or to go directly to providers.
3. Client & advisor submit policy for valuation. Client releases medical information.
4. If policy meets criteria for a life settlement, providers send offers directly or through a broker.
5. Client and advisor review offers and client accepts his preferred offer.
6. Client and advisor complete the provider’s closing package, and return essential documents.
7. Provider places cash payment in escrow and submits change of ownership forms to the insurance carrier.
8. Paperwork is verified and funds are transferred to the policy seller.

Life settlement investors are known as financing entities because they are providing the capital or financing for life settlement transactions (the purchase of a life insurance policy). Life settlement investors may use their own capital to purchase the policies or may raise the capital from a wide range of investors through a variety of structures. The life settlement provider is the entity that enters into the transaction with the policyowner and pays the policyowner when the life settlement transaction closes. In most cases, the life settlement provider has a written agreement with the life settlement investor to provide the life settlement provider with the funds needed to acquire the policy. In this scenario, the life settlement investor is effectively the ultimate funder of the secondary market transaction. However, in some life settlement transactions, the life settlement provider is also the investor; the provider uses its own capital to purchase the policy for its own portfolio.

A life settlement is the sale of a life insurance policy covering a person who has a limited life expectancy — normally 10 years or less. It presents a unique opportunity to extract the maximum value of a Senior’s existing life insurance policy and repurpose those funds for whatever financial needs they may have. Until recently, the owner of an unneeded or unwanted policy had two options – sell the policy back to the institution that issued it for its cash surrender value (if any) or allow the policy to lapse. By utilizing the services of Life Insurance Settlement, Inc. (LIS), your client’s life insurance policy will be submitted throughout the secondary market. Each new offer generated through this process results in more money for your client, thereby providing a greater financial portfolio for you to manage as their trusted financial advisor or agent.

Generally speaking, life settlements are an option for high-net-worth policy owners age 65 or older. Independent estimates report that among this group, 20% of policies have a market value that exceeds the cash value offered by the carrier. And while many policyowners are unfamiliar with life settlements until a financial professional mentions the option to them, the concept has gained attention from high-profile proponents such as Warren Buffett, former U.S. Representative Bill Gradison, and numerous media sources including The Wall Street Journal, Time Magazine, Business Week and The Economist.