Thinking About a Life Settlement? Get Started!

Turn Unused Life Insurance into Real Value for Your Clients

Many seniors hold life insurance policies they no longer need, want, or can afford. Stop letting those policies lapse or be surrendered for minimal value.

Is a Life Settlement the Right Fit?

Age: 65+ (younger individuals may qualify with significant health impairments)

Policy Types: All types considered—Term, Universal Life, Whole Life, etc. Convertible term policies are especially valuable.

Policy Size: Minimum face value of $100,000 (larger policies may attract stronger offers)

Common reasons for selling a policy:

💰 Premiums are becoming unaffordable

🏠 Estate plans have changed

🚫 Coverage is no longer needed or wanted (e.g., spouse died, mortgage paid off)

💸 Client needs liquidity for retirement, health care, or other expenses

The Life Settlement Process: What to Expect

While each case is unique, the process generally follows this clear structure.

1. Application & Initial Review
The policy owner and insured sign forms giving permission to broker or provider to gather information. Disclosures are provided upfront to ensure full transparency and regulatory
compliance.

2. Information Gathering
No medical exam is required — but underwriting specialists will review:

• Policy details (type, premiums, benefits, etc.)

• Medical records (life expectancy analysis)

3. Appraisal & Market Valuation
It’s important to keep in mind during valuation:

• Underwriters evaluate all data to determine the policy’s fair market value

• Each case is unique — health, age, and policy terms all factor into the offer

4. Offers & Review
Offers include a purchase price and transaction terms (timing, required documentation, conditions, etc.).

You and your client can evaluate multiple offers and select the most favorable one.

Finalizing the Transaction

Once an offer is accepted:

🖊 Legal documents and disclosures are sent for review and signatures

🙋 The buyer performs due diligence

📁 The life insurance company updates ownership and beneficiary designations

Important: Most states have a mandatory 15-day rescission period after the sale is finalized, giving clients peace of mind and the ability to cancel if desired.

Typical Timeline: 60–120 Days

The timeline depends largely on how quickly third parties respond. Times are estimated. Some steps run concurrently. Timely client responses can speed things up considerably. Here’s a general overview:

Bottom Line for Advisors

Life settlements are often overlooked, but they can offer significant financial value, especially for clients in or near retirement. As a financial professional, it’s part of your fiduciary duty to explore every potential source of value. A life settlement doesn’t just preserve value. It creates opportunity.

Don’t let your clients surrender or lapse a valuable asset. A life settlement could be the solution they didn’t know they had.

You can read the full Life Settlements Guide here. When you're ready to get started, simply visit www.lisamembers.org for a free, no-obligation policy appraisal from a licensed broker.