Life Settlements “Without competition there would be no market”
The Life Settlement industry has gone from relative obscurity
in the 1990’s to over $10 billion in just a few short
years[1]. According to a 2005 Sanford
Bernstein research report, the industry is expected to grow
more than 10-fold to over $160 billion dollars in the next few
years. The fact that the market has grown so much is because
having a competitive market is the only way to fairly value
a life insurance policy. Historically if someone wanted to surrender
or lapse a policy, individuals were facing a Monopsony. A Monopsony
is defined as a market situation in which a seller can only
sell to one buyer. Would you ever purchase a house if you were
only allowed to sell it back to the original owner at a predetermined
price? There would be no competitive bidding and you would not
be able to ascertain the fair market value. Clearly you would
not knowingly tolerate such a situation, but this is exactly
what has existed for you as a life insurance policy owner…
until now.
What to expect
A life settlement process defined Time frames estimated- can be shorter or longer depending on outside circumstances
Step 1 (1 week). The Life Settlement Company of America will work with you to fill out the application, release forms and disclosures. This person will be your point of contact throughout the entire Life Settlement Process.
Step 2 (up to 30 days). Upon receipt of your signed application
and medical/insurance release forms, our experienced staff will order all medical and insurance records (illustrations) necessary to complete the Life Settlement
Step 3 (2 weeks). Once your records are received, we will do our own partial underwriting and obtain a Life Expectancy.
Step 4 (1 week). Once the case file is complete, (application, medical records and Life expectancy), the policy will be submitted for purchase.
Step 5 (3 weeks). The Life Settlement Company of America will field purchase offers for the policy and negotiate the greatest possible offer
Step 6 (2 weeks). If a Life Settlement offer is accepted,
all of the documents will be finalized and a closing will be
scheduled. After the documents are signed, the monies will be
transferred to a licensed escrow agent. Once the change of beneficiary
has been received by the new owner, the Life Settlement proceeds
will be released.
[1] Source: Sanford Bernstein, March 05
If you feel that you have or will have multiple policies for sale, please contact our wholesale division at wholesale@lscoa.com
to inquire about our new private label program.
