What is a Life Settlement?
A Life Settlement is the sale of a life insurance policy to a third party for an amount greater than the cash surrender value, but less than the death benefit
Life Settlements represent an important financial option for a growing number of people who have a life insurance policy they no longer need, want or can afford. Many people do not realize that a life insurance policy is an asset that can be sold.
- The seller receives cash
- The buyer pays all future premiums and receives the death benefit upon the death of insured
Qualifying for a Life Settlement
Where Do I Begin?
- Submit an information sheet, medical questionnaire and HIPPAA form and an in-force illustration from the insurance company
- LPT will review and qualify the policy. If your policy qualifies, LPT will call you with an informal range of offers
- LPT will obtain medical records and life expectancy report on the insured
- LPT will deliver a formal offer
What’s The Value of My Policy?
LPT determines the value of policies using a variety of inputs and actuarial calculations. Some of the key inputs include the death benefit amount, the premiums necessary to keep the policy in force and the life expectancy of the insured. Since, each policy and insured is different, we need the application, medical questionnaire and in-force illustration in order to determine an estimated value for the policy.
Pre-Qualifying a Policy
Selling Your Policy
The first step is to determine if your policy qualifies for a life settlement. In order to qualify your policy, we need an information sheet, a medical questionnaire and HIPPA, and an in-force illustration from the life insurance company. Once these requirements are received, LPT will determine if your policy qualifies and determine a potential range of offers. The initial evaluation will take 5 – 7 business days.