The Life Settlement Source

Is A Life Settlement Safe?

September 17, 2021

Is A Life Settlement Safe?

Selling your life insurance policy is safe and a sound financial planning tool.

The life settlement market grew more than 80% over the last five years (from 2016-2020) as more and more older Americans have learned about the life settlement option.  But, is a life settlement safe?  There is no question that the answer is a resounding “yes” and a couple of important points emphasize this conclusion:

  1. Regulation, Regulation, Regulation. Like all insurance products, life settlements are regulated at the state level. Currently, 43 of the 50 states regulate life settlement transactions (covering 90%+ of the U.S. population). This means that the company buying your policy has been vetted by the state insurance regulator and approved to conduct business in your state. We only work with life settlement companies that are properly licensed. You can always verify this with your state insurance department.
  2. Privacy Standards. As part of the licensing requirements, life settlement companies are required to adhere to privacy standards, issue and disclose that privacy policy when entering a transaction.
  3. Disclosure Requirements. All life settlement regulations require certain disclosures, including alternative options, the parties involved in the transaction, and the terms of the policy sale.
  4. Closing in Escrow. All policy sales are closed through an escrow account to ensure the safe closing of the transaction. Escrow Agents are typically FDIC-insured financial institutions. This ensures that your funds are safe and secured before you sell your policy.
  5. Form Filing and Approval Process. All of the closing documents have been filed with the state regulators and approved for use. This gives you comfort that the transaction terms are fair and have been properly vetted.
  6. Rescission Period. In all regulated states, the policy seller is afforded a period of time (typically 15 days) to unwind the policy sale if they decide they changed their mind about the policy sale.

For all the reasons listed above, you can be confident that life settlements are safe and secure transactions.

Remember: Never abandon a life insurance policy without looking at the life settlement option first!

If you’re interested in receiving a quick and easy estimate on the potential value of your policy, get an ‘instant’ quote directly from our online calculator page!

For more information, please call 866-679-9410 or email us at info@qlifesettlements.com. You can also make an Appointment with one of our experts. If you are ready to go, complete an Application to get started today!

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