One of the things that holds people back from exploring a life settlement is uncertainty about the process. What will you need to provide? Who reviews your information? How long will it take? These are reasonable questions — and they all have clear answers.
A life settlement, when handled by an experienced broker, is a straightforward transaction. The typical timeline is 30 to 60 days from initial consultation to cash in hand. Here's a step-by-step breakdown of exactly what to expect.
Free Initial Consultation
The process starts with a no-obligation phone call. You'll speak directly with Allan, who will ask about your policy type, face value, your age, and your general health situation. Based on this initial conversation, he'll tell you honestly whether your policy is likely to qualify and what kind of settlement range might be realistic. This call is free, confidential, and puts you under no obligation whatsoever.
Sign a Broker Agreement
If you decide to move forward, you'll sign a broker agreement that authorizes Allan to market your policy on your behalf. This agreement defines the scope of the engagement, confirms that there's no upfront cost to you, and establishes how the broker fee will be handled at closing. This is a standard, regulated document required by state insurance laws.
Gather Policy Documents
You'll provide copies of your life insurance policy, recent premium statements, and a policy illustration (a document your insurance company can provide showing the policy's current status and projected values). Allan will help you understand exactly what's needed and can assist in obtaining documents if necessary.
Medical Records and HIPAA Authorization
Buyers need to understand the insured's health status to make an informed offer. You'll sign a HIPAA authorization allowing your medical records to be requested from your physicians. Buyers use this information to assess life expectancy — the more detailed the health picture, the more accurately they can price the policy. This step is handled confidentially and professionally.
Life Expectancy Assessment
Buyers typically order a life expectancy (LE) report from one or more specialized actuarial firms. These firms review your medical records and calculate an estimated life expectancy. This report is a key input in the buyer's offer calculation. You don't need to do anything for this step — it happens behind the scenes.
Policy Marketed to Buyers
With all documents in order, Allan presents your policy to his network of licensed institutional buyers. This competitive process is the most important step for maximizing your settlement amount. Multiple buyers reviewing and bidding on your policy creates competition that drives the price up. Allan manages this entire process — you don't need to interact with buyers directly.
Review and Accept an Offer
Once offers are received, Allan presents them to you and explains each one clearly. There's no pressure to accept any offer — you retain complete control. If the best offer isn't satisfactory, you can decline and explore other options. If you're happy with an offer, you accept it and the transaction moves to closing. Allan will advise you on whether an offer is competitive relative to market conditions.
Closing and Payment
Once you accept an offer, the closing process begins. Ownership of the policy is transferred to the buyer through a formal assignment process coordinated with your insurance company. The funds are typically held in escrow during this period and released to you — via wire transfer or check — once all paperwork is complete and the insurance company confirms the ownership change. You receive your payment, and the buyer assumes all future premium obligations. You're done.
What Happens After You Receive Payment?
After closing, the buyer owns your policy. You have no further relationship with the insurance company and no ongoing obligations. You should notify your beneficiaries of the change, and you'll want to consult with your tax advisor about the tax treatment of your settlement proceeds (which may be partially taxable depending on your specific situation).
"The process isn't complicated — it just requires someone who knows how to navigate it. I've been through this hundreds of times, and my job is to make sure it's smooth and stress-free for my clients."
Ready to Start?
The only thing standing between you and knowing what your policy might be worth is a single phone call. Allan will walk you through Step 1 in about 15 minutes — and you'll leave that conversation with a clear picture of your options. No pressure, no cost, no obligation.