Generally, a Life Settlement sale and purchase is most advantageous when the insured is 65-70 years old or older and has a life expectancy of 3-15 years. There are, of course, exceptions to these standards. If you feel that you, your business, or your client may benefit from the Life Settlement alternative, please consult an experienced Life Settlement broker for further evaluation of your situation.

Eligible policies for Life Settlement include: universal life, adjustable life, variable life, survivor life, whole life, and term policies. While a policy may insure one or more persons, an individual, a partnership, a corporation, a charity, or a trust may own it.

1. Policy owner makes the decision to sell a life insurance policy into the secondary market - It is prudent, even at this very early stage, to elicit the assistance of a Life Settlement consultant/broker. Your consultant of choice:
   
   · has established Life Settlement expertise
   · has access to all established institutional purchasers
   
   
2. Policy value determination is made - A properly conducted analysis of the life insurance policy is essential to determine the prudence of the Life Settlement alternative.
   
   
3. Disclosures are made by the purchaser and witnessed documents are submitted by the seller - Disclosures and acknowledgments are made to protect all parties and the integrity of the transaction, and will vary from state to state.
   
   
4. Purchase offer is made to the seller via his/her Life Settlement broker - The amount offered will depend on a number of factors such as the insured’s age, health and life expectancy, the cost of the ongoing premiums to keep the policy in force (if any), the type of policy, the policy’s cash surrender value (if any), the existence of any loans against the cash surrender value, the policy’s death benefit, policy provisions, and the rating of the insurance company underwriting the policy.
   
   
5. A contract for the purchase of the life insurance policy is entered into - Acceptance of an offer results in execution of a life settlement contract between the provider and the policy seller. The contract establishes the fair market value to be offered, that the fair market value is less than the expected death benefit of the policy, and that a transfer of ownership and beneficiary will be designated at a later date.
   
   
6. Transfer of policy sale proceeds to seller - The provider deposits the contract amount with an escrow agent or trustee who transfers this amount to the seller within three business days of the date the insurance company confirms to the provider that the transfer of ownership has been completed.