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What is a Life Settlement?

Happy life settlement couple

Receive cash through a life settlement and end the costly premiums.

A life settlement is the sale of an existing life insurance policy to a licensed life settlement provider for more than the policy’s cash surrender value, but less than the death benefit amount.

Selling your policy provides a lump sum cash payment today instead of collecting the policy’s death benefit in the future.  The amount of a life settlement offer is based primarily on the insured’s life expectancy and the cost of future policy premiums.  Once the sale is completed, the life settlement provider becomes the owner and beneficiary of the policy and takes over all future premium payments.  You are released from any further obligations and can use your settlement money however you please.

A life settlement is a great option for seniors looking to end costly policy premiums while receiving immediate cash to fund their retirement.

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Benefits of a Life Settlement

Life settlements have become a popular way for seniors to end costly premiums and obtain immediate cash to supplement income, pay for medical bills, fund long-term care expenses, consolidate debts, take a dream vacation, and make lifetime gifts to family and charity.  Since there are no restrictions on how the funds can be used, a life settlement can be a smart financial option for seniors searching for more financial security and peace of mind.  It’s your money.  Why not use it now?

The benefits of a life settlement include:

  • Receive much more than the policy cash surrender value
  • Ends expensive premium payments
  • Avoids lapsing the policy for zero value
  • Better than reducing home equity through a reverse mortgage
  • Generates business cash flow for unneeded “key man” and “buy-sell” policies
  • No up-front fees, obligation or out of pocket costs
  • No medical exams or credit checks
  • No restrictions on the use of funds
  • Discreet and confidential process

Another Client Success Story

BRAVEPORT helped Roger fund his Mom’s nursing home care with an immediate payout of $400,000 from their $1,000,000 universal life policy.

Happy mom and son after life settlement

Roger was the owner of a $1,000,000 universal life policy, insuring his 84 year Mom.  Facing increasing premium costs and nursing home expenses, Roger explored the idea of selling the policy through a life settlement to help cover her care expenses and to end the $50,000 per year insurance premiums.  After receiving a low-ball offer from a “direct funder”, Roger contacted BRAVEPORT to see if we could do better.  Through our competitive bidding process, we obtained multiple offers which resulted in a payout of nearly twice the amount offered by the “direct funder”!  Roger was thrilled and used the proceeds to help fund his Mom’s continuing nursing care.

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Who Qualifies for a Life Settlement?

Qualifying for a life settlement is based on a few basic factors, namely, your age, health history, policy type and future premium costs:

You should be at least 70 years old (unless you have a serious or terminal illness) 

Most licensed life settlement providers require you to be at least 70 years old to qualify for a life settlement.  However, if you are younger than 70 and have a serious or terminal illness, you may still qualify for one of our viatical settlement and life insurance loan programs.  To learn more about these programs, please visit our companion website.

The face amount of your policy should be at least $100,000.

To qualify for a life settlement, your policy generally must have a current death benefit of at least $100,000.  If you have multiple policies totaling $100,000 in coverage, or have a serious or terminal illness, we may still be able to help.

Your policy type must be eligible. 

Most life insurance policy types are eligible, including, Universal Life, Whole Life, Flexible Premium Adjustable Life, Group Life, Indexed Life, as well as governmental benefit policies issued by FEGLI, VGLI and SGLI.  Term Life policies usually qualify for a life settlement as long as there is sufficient time left on the term, or the policy is convertible to a permanent life insurance policy.

“I feel that you really did represent our interests in maximizing the dollar amount which we received.”

How it Works

The life settlement process starts with our initial free consultation and ends with payment to you.  There are no credit checks or medical exams required.  Your eligibility is determined solely on whether your medical profile and policy qualify.  A life settlement can typically be completed within 4-6 weeks of completing our underwriting process.  Here’s a summary of how the typical life settlement process works:

1.  Free consultation and no-obligation policy review.

After you contact us, we will get in touch to pre-qualify you for a life settlement.  We will ask you some basic questions about your health and the policy and will discuss how much your policy may be worth as a life settlement.  The initial consultation usually takes no more than 10 minutes.

2.  Fill out our client questionnaire.

If you are qualified and decide to move forward, we will provide you with a short client questionnaire (via your choice of email, fax or mail) to help us gather information about your health history and the life insurance policy.  The questionnaire usually takes about 15 minutes to complete.

3.  Policy and medical underwriting begins.

Once your return the completed client questionnaire, we will obtain necessary records directly from your medical providers and your life insurance company.  After reviewing the records, we will complete our underwriting and start the competitive bidding process with our network of licensed life settlement buyers.

4.  The competitive bidding process.

One of the biggest advantages to working with a life settlement broker like us is our competitive bidding process.  Unlike “direct funders” who are motivated to offer you the lowest amount they think you will take, we will negotiate the highest offer through our network of more than 30 licensed life settlement buyers.  During the bidding process, we will inform you when new offers are received and update you about our progress.

5.  Review offers and decide. 

After you review all the life settlement offers, you will decide if you want to move forward.  If the offer isn’t high enough for you, or you choose not to proceed, you are under no obligation and can walk away at any time.  If you decide to accept an offer, we will immediately begin the closing process and handle all the paperwork for you.

6.  The closing process. 

Once you accept an offer, the licensed life settlement buyer will prepare the contracts for the sale and transfer of the policy.  We will help you complete the contracts and work with you to finalize the transaction.  After the buyer reviews and accepts the contracts, they will deposit the purchase funds into an escrow account and submit a request to your insurance company to transfer ownership and beneficiary rights to the policy.  Once the insurance company verifies that transfer of ownership and beneficiary has been completed, the escrow agent will send the purchase funds directly to you via wire transfer or certified check.

7.  After the sale is completed. 

Once the sale is completed, you are immediately released from any further premium payments and are free to use your life settlement proceeds however you choose.  The buyer will continue to make premium payments on the policy to the insurance company and will collect the policy’s death benefit upon the passing of the insured person.

life settlement process chart
Husband and wife completed life settlement

What if I Want to Keep Some Coverage?

If you like the idea of ending expensive policy premiums, but still want or need to keep some life insurance coverage, a Retained Death Benefit Settlement may be right for you.

A Retained Death Benefit Settlement allows you to keep a portion of your life insurance coverage with no future premium obligations.  The Retained Death Benefit Settlement can be tailored to your individual needs and may be combined with a life settlement to provide an immediate cash benefit and an irrevocable beneficiary interest in the policy’s death benefit.

If you are interested in a Retained Death Benefit Settlement, we will solicit Retained Death Benefit Settlement offers in addition to our traditional life settlement programs so you can decide which one works best for you.

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A Life Settlement | Sell Life Insurance Policy | Senior Life Settlements