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The life settlement process begins with a thorough evaluation of the
continuing need for the coverage and the suitability of the sale of the
insurance policy as respects the client’s entire financial profile.
If it is deemed to be in the client’s best interests to sell the policy, then
the market value of the existing policy can be determined. In order to establish
the market value of the policy we will need a completed settlement application,
authorization forms that allow us to obtain medical records, and current in
force policy illustrations. By accessing our institutional funding sources, we
endeavor to obtain multiple offers for the sale of the policy.
Once an offer is deemed acceptable, appropriate documents are drawn for
signatures by all parties, including all beneficiaries to the policy being sold
and an attending physician who verifies the seller’s mental ability to
understand and enter into the transaction. When the documents have been executed
and returned to the company, the change of ownership and beneficiary designation
will be sent to the company and the funds will be released to the policy
owner/seller.
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“The report concludes
that a ‘secondary
market’ for life
insurance improves the
financial well-being
for both policyholders
and financial
advisors”
On
Wall Street
November 2002 |
