Steps of the Life Settlement Process
Firstly, what is life settlement? According to alifesettlement.com, "Life settlements involve the sale of a life insurance policy by the policy owner to a third party. Increasingly, senior citizens engage in life settlement contracts because this seems appropriate, based on their personal financial goals. Often, the decision to sell a life insurance policy emerges because the policy owner believes they no longer need the policy and/or they no longer can afford the policy".
Then do you think this will work out for you? I guess yes, to undergo the life settlement process there are something's/step you need to follow carefully. Here in this article you will find those tips and steps:
First Step: Are your decisions concrete? This is because you need to be sure and determined if the decision of sell your life insurance policy is going to help you with your financial plans.
And also you have to take note of this, once you've sold you life time insurance policy it's not your own responsibility to pay for that premium insurance policy, the new owner is now responsible for the payment.
Second Step: Before selling out you life insurance policy, you are to find someone of your own whom you really trust. Occasionally, most people use this opportunity to have a good relationship with a good broker, because you will need their help in situations like this. After getting a broker whom you really trust, it's now the brokers turn to share some useful information's with you; he or she will tell you everything you need to know about life insurance policy, your broker will also let you know the qualified age that is responsible or that can buy your life insurance policy.
Third Step: You have the right to accept or reject any offer from any life insurance company, once you accept their offer they receive some huge amount of money from the new owner, they also help the new owner in the transfer of policy ownership and right, also when you reject their offer they will automatically retain ownership of their policy.
Note: While doing this you have to beware of any fraud and also get you attorney involved, in case you have any issues in future.
As a life insurance owner there are some right you have to the insurance policy, one of these rights is the right to manage the insurance policy since you are the owner of the policy. Also as the new life insurance policy owner you have the right to make decisions on your policy, if you which to let your new life insurance policy to fail, this is up-to you and if you which to let your new insurance policy to be firm definitely it's up-to you, no one has the right to challenge you and your decisions on your new insurance policy.
Alifesettlement.com has also made us know that "the person who sells this policy to the new owner also has rights. The seller may use the proceeds they derive from the sale of their insurance policy in any fashion they choose and they are not required to be above or below certain asset or income levels in order to qualify for the life settlement".