Life Settlement

What is a life settlement?

A life settlement is the sale of an existing life insurance policy for an amount greater than the cash surrender value. Insurance policies are a saleable asset like a stock or bond. It is a lucrative financial option for seniors 65 and older who no longer need or want their current insurance policy.

EXPERTS PREDICT THE INDUSTRY WILL GROW TO 160 BILLION OF FACE AMOUNT OF POLICIES SOLD BY THE YEAR 2012.

Need for Life Settlements

With advances in medicine people are living longer and their financial situation may change. Their current life insurance policy may no longer be suitable due to changes in estate planning needs; business changes or the policy may simply be under performing.

Prior to life settlements, a policyholder had only 3 choices:

1. Continue to pay for an unneeded policy
2. Surrender the policy for the cash surrender value, or
3. Allow the policy to lapse losing all the money previously invested in it.

The insured now has the option to sell the policy for a large cash sum as a life settlement.

With a cash settlement seniors may purchase long term care insurance and /or an annuity. Others use the funds as charitable donations or gift to family members. Some choose to use the money to enhance their lifestyle in retirement.

How does it work?

All you need to do to let us help you offer financial freedom to your clientele is to complete an online Evaluation Form and send it to us.

The process:

1. The insured signs standard release forms, HIPAA, and an application. This enables BSM to gather the necessary information to price the policy.
   * The insured does not need to see a physician.
2. BSM gathers all the necessary documentation and information needed to price the policy
3. BSM submits the policy to our established network of funders to evaluate and price the policy. (We work with all the licensed providers and buyers of policies)
4. BSM receives settlement offers and will negotiate the highest price for the policy. It is our fiduciary responsibility to represent the best interests of the client and get the highest possible offer for the policy.
5. The settlement offer is accepted. (The seller is under no obligation and can choose to keep the policy and not sell it.)
6. BSM oversees all aspects of the closing process including the closing documents, change of ownership with carrier and payment to the seller.