Table of Contents:
- Completing Your Life Settlement Application
- Submitting the Proper Documents
- Accepting an Offer
- Receiving Your Payment
Aging out of the workforce and entering your retirement years can feel both exciting and unnerving—there are life events to plan for, funds to squirrel away for future needs and lots more life to live. This can make planning difficult, especially for those who need help assessing their personal finances or assets. Unsure of what possibilities to prepare for, many seniors never explore the full breadth of their financial options.
A life settlement, defined as the payment you receive after selling your term, whole or universal life policy, can provide relief to policyholders who no longer wish to maintain their life insurance plans. Whether a beneficiary or spouse has passed, or your monthly premiums have become too much to handle, you could receive the funds you need in just a few short months.
Completing Your Life Settlement Application
Thanks to the increased growth, security and confidence in the life settlement industry, it’s never been easier to obtain a free estimate. The application itself will cover a few basic criteria, so you’ll need to have information regarding your insurance coverage and health status on hand. Filling out the initial form will only take a few minutes. If you prefer to speak with a specialist directly, that’s also an option.
Submitting the Proper Documents
In order to get the most accurate quote, a life settlement specialist may ask for additional documentation that will help paint a clearer picture of your current health and financial status. In some cases, policyholders may need to procure and submit current medical records, especially if a recent health event has taken place. The timeframe here will depend largely on how long it takes you—the policyholder—to gather the documents your specialist requests, but you can expect this phase to take up to a couple weeks.
Accepting an Offer
After the proper paperwork is filed, your policy will be eligible for purchase by a third-party investor. Depending on a few variable factors, this process can take anywhere from six to 12 weeks, with some transactions often requiring less time, others more. Each case is unique, but generally speaking, many policyholders receive their payment in a matter of weeks.
The life settlement transaction is just that: a transaction; however, it’s important to find a specialist you trust. Reliable specialists select only the best offers for their clients, so be sure to find a representative that can be honest about your prospects while seeking the best deal for you.
Receiving Your Payment
Once you’ve accepted an offer, your specialist will draw up all closing documents, which can take up to two weeks. Your insurance company will need to do their part in signing off on the appropriate documents, too. Though this sounds like enough paperwork to make your head spin, there’s lots of communication happening behind the scenes to finalize your life settlement in a timely manner. In the end, you’ll receive your final payout, which can often be distributed as one lump sum.
Individual elements will impact exactly how long it takes for you to see the returns on your life settlement investment, and every scenario is different. With the informed guidance of an experienced specialist, you can expect the process to be swift and smooth. When it comes to pursuing a life settlement, most seniors find the wait to be worthwhile.