The Life Settlement Transaction Process: Explained!

Last updated on January 18, 2021 by Chris Granwehr in Life Settlements

Couple after life settlement.

You are probably here because you have realized just how bad universal and variable insurance policies can be. They are actually on personal finance guru Suze Orman’s top 10 list of most hated investments saying that these forms of life insurance “do absolutely nothing for you and do everything for the financial salesperson.”

You have noticed that the cash value of your permanent insurance policy is not what you have paid into it over the years and you have had enough of the premium increases. Forbes Magazine recently reported that “tens of thousands of universal life policyholders have been hit with double-digit premium increases [with some policyholders stricken with] increases of over 200%.”  

And, finally, you are here because you are ready to start the life settlement process and get paid! Lets look at the process of a life settlement transaction.

The Life Settlement Transaction Process in 8 Easy Steps

Step One: View Your Life Insurance Policy as an Asset

The life settlement process starts when you realize that your policy is an asset. And just like any other asset you can sell it.

There is nothing shady or new about life settlement contracts. The United States Supreme Court unanimously agreed in 1911 that people have the right to sell their life insurance policies. When you sell your permanent life insurance policy via the life settlement process, you are partaking in a constitutional right that many Americans have reaped the benefits of over the last 107 years.      

Step Two: Determine That a Life Settlement Makes Sense

Odds are you need a life settlement transaction solution if:

  • You are of retirement age;
  • You no longer need to provide an income to your loved ones in the event of your passing;
  • You cannot afford the premiums; and/or
  • You simply need the money from cashing out a life insurance policy.

Keep in mind that although this guide to closing life settlement transactions mostly refers to permanent policies, you can often convert and then sell your term life insurance policy.

Step Three: Get an Instant Life Settlement Value Estimate

Discover your policy value in seconds:

inline cta 1

Step Four: Get an Offer From Mason Finance

After providing some additional health and policy information, Mason Finance will give you an offer within a few hours.

Step Five: Make a Decision

You are under no obligation to sell your policy. At this point you know exactly what your policy is worth, and you can decide whether selling it makes sense.

Step Six: Close the Life Settlement Contract

If you are satisfied with the offer, you will begin the closing process. This process differs slightly by state, but we aim to close within a week of the offer.

Step Seven: Get Paid

Once the ownership of your life insurance policy change has been verified, you will get paid!

Step Eight: Enjoy

You have completed the life settlement process. Now, you are free to spend the cash you received on whatever you might need or want. And even better- no more premiums!

rating onrating onrating onrating onrating half (5 votes, average: 4.40 out of 5)

chris granwehr 70x70
Sarel Doglu
Sarel Doglu is the Senior Vice President, Marketing and SEO Lead at Mason Finance Inc. He graduated with a B.S. in economics and business administration.

Get an estimate of your policy value in seconds.

Previous ArticleNext Article