Selling a life insurance policy, whether through a life settlement or a viatical settlement, is a complex process involving multiple parties. Each participant plays a critical role in ensuring the transaction is handled efficiently and securely. Here, we break down who is involved and their responsibilities at each stage of the process, from application to closing.
The application phase is focused on evaluating the policy’s eligibility and presenting it to potential buyers. The following parties are key to this initial stage:
Role: The individual or entity that owns the life insurance policy initiates the process. They provide the necessary policy documentation, financial details, and medical records to begin the evaluation.
Role: The person whose life is covered by the policy. Their medical history is reviewed, and they may need to participate in a life expectancy assessment, as this directly affects the policy’s valuation.
Role: A licensed intermediary representing the policy owner. The broker’s job is to market the policy to multiple life settlement providers and secure the most competitive offers for the seller.
Role: A licensed entity that evaluates the policy and facilitates offers from institutional investors or funding entities.
Role: Specialists who analyze the insured’s medical records to estimate their life expectancy. This information is vital in determining the policy’s worth to potential buyers.
Role: Oversee the transaction to ensure compliance with life settlement laws, such as licensing requirements, consumer protections, and transparency standards.
Once a buyer is found and offer accepted, the focus shifts to finalizing the sale. These parties ensure that the transaction is executed smoothly and securely:
Role: The party purchasing the policy. Buyers pay the agreed price, assume responsibility for ongoing premiums, and collect the death benefit upon the insured’s passing.
Role: A neutral third party, often a law firm or financial institution, that holds the funds during the transaction. The escrow agent ensures all conditions are met before releasing payment to the seller.
Role: Optional but highly recommended. These professionals provide legal and financial advice to the policy owner, addressing tax implications and ensuring compliance with state regulations.
Role: In some cases, beneficiaries named in the policy must provide consent to the sale, especially if their interest in the policy is affected.
Role: A spouse’s authorization may be required during the closing process, particularly in community property states or when laws dictate spousal consent.
Role: If the policy has a collateral assignment or outstanding loan, the bank or lender must release the assignment or approve the sale. In some cases, the loan may need to be repaid before the transaction can proceed.
Navigating the life settlement and viatical settlement process requires expertise, transparency, and a commitment to protecting sensitive information. That’s where LS Hub stands apart as the premier solution for policy owners, brokers, and investors alike.
At LS Hub, our team combines years of experience with cutting-edge technology to streamline the settlement process. From evaluating policies to securing top-dollar offers through our global network of buyers, we ensure every transaction is handled with precision and professionalism.
We prioritize your privacy and data security at every step. Our industry-leading security measures ensure that personal information, including medical records and financial details, is never released to the public. With LS Hub, you can trust that your sensitive data remains confidential and secure.
Whether you’re a policy owner looking to sell or a broker seeking the best outcomes for your clients, LS Hub provides the expertise, tools, and support needed to succeed. Let us guide you through the process with confidence and care.
To learn more about how LS Hub can assist you, visit LS Hub’s solutions or contact us today.
Navigating the life settlement and viatical settlement process requires expertise, transparency, and a commitment to protecting sensitive information. That’s where LS Hub stands apart as the premier solution for policy owners, brokers, and investors alike.
At LS Hub, our team combines years of experience with cutting-edge technology to streamline the settlement process. From evaluating policies to securing top-dollar offers through our global network of buyers, we ensure every transaction is handled with precision and professionalism.
We prioritize your privacy and data security at every step. Our industry-leading security measures ensure that personal information, including medical records and financial details, is never released to the public. With LS Hub, you can trust that your sensitive data remains confidential and secure.
Whether you’re a policy owner looking to sell or a broker seeking the best outcomes for your clients, LS Hub provides the expertise, tools, and support needed to succeed. Let us guide you through the process with confidence and care.
To learn more about how LS Hub can assist you, visit LS Hub’s solutions or contact us today.
Stephen Jass, a recognized authority in the life settlement industry, has dedicated over a decade to transforming how life insurance policies are valued, sold, and managed. As the founder and CEO of LS Hub, Stephen has pioneered technology-driven platforms that ensure transparency, privacy, and maximum returns for policy owners. His expertise extends to collaborating with global investors, advancing regulatory understanding, and spearheading innovative strategies that redefine industry standards. Stephen's commitment to serving policy owners with integrity and providing unmatched value has positioned him as a trusted leader in this niche financial space.
