Sell Your Life Insurance
A simple definition of a life settlement is the selling of a person’s life assurance to another party for an upfront purchase fee. The life assurance policyholder is paid a payment that is more than the policy’s cash value, but less than the policy’s survivor benefit. After the coverage is handed over, the purchasing party is now the legal owner on the policy and also must assume responsibility for future premiums. The person selling their policy receives the agreed amount of money for the policy, and the purchasing party receives the death benefit once the insured does pass.
In WY., life settlements are controlled under the auspices of the Wyoming Department of Insurance, and we strongly recommend that you check the regulator’s website to be very certain that you work with a sanctioned firm. A license as a life settlement provider is not reqruired in the state of Wyoming.
When a policy owner takes the decision that they want to give up their current insurance policy, a life settlement offers a good alternative to discontinuing the standing policy and relinquishing it to the insuring company. Much of the time, the insurance policy value is higher than the amount to be received if it were suddenly lapsed back to the insurer. In choosing to work with a properly licensed firm, the policyholder can take the policy to a interested market where established investors can bid on policies offered up for auction. Then the sanctioned life settlement provider may direct the overall sales process, from soliciting bids from investors, to coordinating with the policy owner to finalize the policy sale closing procedure. And lastly, all sales are closed with an escrow agent, as an additional level of protection for the policy seller. Often, the sales transaction procedure can be completed within a month or two dating from the initial request.
Life settlement transactions are intricate and depends on detailed knowledge and experience to assess all your best options.
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Once the policy has been received with all of the required information, the life settlement process continues as follows:
Our partners are the very best in the life settlement industry. Here are a handful of case histories of what we have delivered.
71 year-old female owning a $3,000,000 life insurance policy. The plan had no cash value in the policy and the woman’s next premium payment was going to be $89,580. Her policy was purchased for $435,000.
76 year old man in possession of a $1,002,592 policy. With only $2,592 value remaining in the life insurance policy, the monthly cost was going to cause the life insurance policy to lapse. We were able to locate a buyer who paid the trust $116,000 for the life insurance policy.
A 76 year old man insured on a $700,000 life insurance plan. The owner of the policy was preparing to let the plan lapse because it was no longer needed. Our client’s advisor suggested that the man should seek out a life settlement evaluation and his policy was picked up for $140,000.
Viatical Settlement Model Regulation (PDF)
About Wyoming
State Bar of Wyoming
Tell us a little about your situation and we’ll help you assess whether a life settlement is right for you.
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