The life settlement process begins with the completion of a Quick Qualifier to determine settlement probability, followed by the Life Settlement Preliminary Inquiry and HIPAA Authorization forms. In-force illustrations are then obtained, medical records of the insured are received, and a formal Life Expectancy (mortality) report is acquired. Provada then negotiates the highest offer by accessing its relationships with over 40 qualified institutional funding sources.
Once an offer is accepted, Provada assists with the closing documents, change of ownership and change of beneficiary forms. Upon verification that change forms are being processed, funds are released to the policy holder by the funders. The entire process can take up to 3 months and is similar in complexity to a real estate transaction.
Policy Qualification
Universal life, whole life, variable life, term insurance (if convertible) and variable annuities are all candidates for life settlements. Policies most likely to receive higher offers have the following characteristics:
- » The insured is a senior with a life expectancy of less than 20 years.
- » The policy is at least two years old.
- » The face amount is over $100,000.
- » The cash value is less than 30% of the face amount.
- » There are no substantial loans on the policy.
- » There is a low premium-to-face amount value ratio.
Registered users have access to our policy qualification form and preliminary application in the Tools section. Contact us for more information on Provada's life settlement brokerage solution. |
