Just like any other asset, a life insurance policy can be sold by one party to another for cash. So very simply, a life settlement is a transaction in which a life insurance policy is sold by one party to another. These policies are sold to a state licensed financial institution.
The purchasing party is an investor willing to pay the policy holder a fee to become the beneficiary of the policy while assuming responsibility for paying future premiums.
As part of the purchase transaction, the investor assumes responsibility for paying all future premiums required to keep the policy enforced. When the insured passes away, the investor receives the death benefit.
The Life Settlement Process
Typically the Life Settlement process takes 90-120 days depending on the complexity of the case. Simple transactions can be completed in less time. O’Donnell Group’s job is to represent the interests of the policyholder and nobody else. We’ll advise you during each and every step along the way. The process usually goes like this:
- Fill out our “Tell Us About Your Policy” form to get started.
- We’ll make a determination as to whether or not your policy qualifies.
- If qualified, complete an inquiry packet:
- Inquiry Form
- HIPPA Form
- Broker’s Agreement
- We’ll verify insurance and medical status.
- We’ll submit your policy to our marketplace for offers.
- You review and sign the closing package.
- We’ll notify the insurance carrier.
- Funds are transferred.