Who Buys Life Insurance Policies? Here Are Our Insights

Who Will Buy My Life Insurance Policy?

If you are interested in selling your life insurance policy, you may be wondering which companies buy life insurance policies. Settlement Benefits Association works exclusively with pre-vetted licensed funding groups with which we have long-standing relationships. Even so, it is important for anyone considering a Life Settlement or Viatical Settlement to understand who can buy a term life insurance policy and the process involved.

When a group or individual buys your life insurance policy, they are making an investment. The buyer pays you a lump sum, always more than the policy’s cash surrender value but less than the full benefit. In exchange for this one-time payment, the buyer takes on all future premium payments and becomes the policy’s beneficiary. The buyer collects the full death benefit value when the policy owner passes away.

Requirements for Companies Who Buy Term Life Insurance Policies

Some level of knowledge about the buyer is crucial for a policy owner in any settlement. In the case of Viatical Settlements, choosing the right buyer means you will not incur extra taxes later on. When exploring settlement options for life insurance buyers, pay close attention to:

Licensing: Licensed buyers are the most qualified in a Viatical Settlement. The licensing guidelines set forth by the National Association of Insurance Commissioners’ Viatical Settlements Model Act detail specifications like reasonable payment guidelines. In certain states, buyers may also need to meet other licensing requirements.

Older couple celebrating their life settlement

Do I Need a Life Settlement Broker?

Selling your life insurance policy is a major financial decision. Working with an experienced professional helps you understand the complex sales process and ensures every step follows local and federal laws.

By partnering with Settlement Benefits Association, you benefit from our knowledge and experience for a streamlined settlement experience. We help you:

Benefit from sales support: Selling your life insurance policy involves several steps. We know these steps, and we will work with you through each one. We provide all the necessary information at the right time, so there are fewer delays.
Make better connections: We have long-standing connections with more than 20 funding groups around the country. We constantly work with them and reach out to new organizations working in the Life Settlement industry. We vet our funders so your buyer fits all the necessary requirements.
Get a better deal: We negotiate with buyers to get you the highest bids. Our team facilitates every conversation and prevents misunderstandings or predatory practices.

Working With Companies Who Buy Life Insurance Policies

Throughout the settlement process, buyers and policy owners will have a fair amount of contact with one another. After we agree to move forward in a settlement case, Settlement Benefits Association will facilitate communication for:

Case presentation and bidding: We meet with any companies that buy life insurance policies to present the policy owner’s entire case. Then, we get a bid from the organization.
Settlement negotiations: During the bidding process, we work to increase demand for the policy, to raise its price and get the policy owner the best value.
Contract review: We ensure any contracts meet our pre-specified arrangements. We look for any elements that need to be adjusted and rewritten and continue revising until everyone agrees on the contract and is ready to sign.
Beneficiary transfer and cash disbursement: We make the final steps of the sale as smooth as possible so the policy owner can get their money quicker and the buyer can begin setting up payments as a full beneficiary.

Get Started With Settlement Benefits Association

Settlement Benefits Association is dedicated to helping each client maximize the value of their life insurance policy. We can work with you to discuss your options for a Life Settlement or Viatical Settlement and determine what might make sense for you and your family.

To get started, contact us for a policy evaluation today.

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Do I Qualify?

Fill out our free policy calculator today to see if you qualify and find out how much you can get for your policy.

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Who Buys Life Insurance Policies?