The process of selling your life insurance policy is not difficult. It is a 9 step process that is mostly handled by the life insurance settlement broker. Besides an application and some of your medical records there is not much for the applicant to do. The following is a simple list of the process.
This process can cause some anxiety and fear in doing it right. Also what if you are not near a local insurance agent that handles this type of service. What do you do? Many firms like Mason Finance can do this online. There is no excuse anymore to solving your financial needs.
Process For Selling Your Life Insurance policy
1. Realization:
Policy owner realizes that his/her life insurance policy is an asset that may be offered for sale.
2. Contacting a Representative of the Life Insurance Settlement Association:
If a life settlement is determined to be the best option, the policy owner or the advisor get in touches with a member of the Life Insurance Settlement Association who is either a life settlement broker or provider to start the procedure. It's possible to engage in a life settlement through either.
3. Application:
After selecting proper representation to settle a policy, the policy owner should complete an application and provide policy, ownership and insured information providing a list of doctors and/or medical records for underwriting. It is essential that you review all your personal privacy and security rights.
4. Underwriting:
The settlement company submits the medical records for review by an independent life expectancy company. Life expectancy business calculate the probable life span using actuarial and physician experts.
5. Analysis:
Each life settlement provider/buyer calculates the marketplace value for the policy offered for sale. Companies may consider different aspects when valuing a policy, including contract specifics such as premium expense, death benefit and provider ratings, as well as insured details like age and life span underwriting.
6. Preparing an Offer:
The provider/buyer will either decline or prolong an offer to the policy owner or agent. An agent will seek competing offers from other providers/buyers. The policy owner can accept or decline any offer.
7. Purchase and Sale Agreement:
If the policy owner approves a deal, the provider that made the deal will prepare a purchase and purchase contract and other documents formalizing the transaction. The policy owner, insured and beneficiaries then sign this package. The provider will evaluate, complete due diligence and countersign the plan. The money for the settlement sale are then placed in an escrow account.
8. Notification:
The insurance provider is informed of the modification of policy ownership and named beneficiary to the different owner, the provider.
9. Money Transfer:
Upon written confirmation of the change of ownership and beneficiary, the escrow agent releases the settlement payment to the seller of the policy.
The process is simple and painless. It's easily handled by your Settlement specialist. In a very short time you will be in possession of your money.
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