Select Life Settlement Corporation, our sister company, specializes in life settlements. A life settlement involves the purchase by a third party of a life insurance policy which has become unnecessary or unwanted. Life settlements are a relatively new part of the financial services universe but they represent a large market which is experiencing exponential growth.

Life settlements offer consumers and their professional advisors a whole new set of options. Prior to the development of a secondary market for life insurance, an unwanted or poorly performing policy could only be allowed to lapse, be surrendered for the cash value or converted to one of the settlement options dictated by the insurance company. A policy which qualifies as a life settlement has a market value which is higher (often significantly higher) than the policy’s cash value. The proceeds from a life settlement can be used during the insured’s lifetime for business, personal or charitable purposes. It is also often possible to provide new coverage on a more efficient basis.

Most of the market involves insureds over the age of 70 or those 65 and older with real health issues. Opportunities for life settlements often arise when:

• Existing life insurance coverage is no longer wanted or needed
  
  
• Existing life insurance policies are badly structured or performing poorly
  
  
• Premiums on existing policies have become unaffordable
  
  
• The insured has outlived family and/or beneficiaries
  
  
• Divorce settlement alters the need for insurance
  
  
• An exit strategy is needed for policies within a qualified plan or a non-qualified trust
  
  
• Estate plans or objectives have changed
  
  
• Key man or buy-sell policies are no longer needed
  
  
• Funds are needed for long-term care, annuities or new life insurance
  
  
• Proceeds of a sale could result in a larger gift to the charity than the policy

Ideal candidates for life settlements are clients over age 70, a change in insurability since the policy was issued, a universal life or convertible term policy with a minimum face amount of $250,000 and a life expectancy of 15 years or less.

2006 Bernstein Research (Life Insurance-Life Settlements Update) indicates that the life settlement market is in the midst of high growth and will continue its upward trend as the baby boomer generation enters retirement. Industry experts predict that by year 2030, there will be 72 million seniors age 65+ who will control $800 billion of life insurance, of which $161 billion would be eligible for life settlements.

Below are links to Select Life’s submission packages. Please use on all the cases you send to us.

Life Settlement Submission Package-PDF
(for U.S. residents outside of Texas)

Verification of Coverage Form-PDF
(for U.S. residents outside of Texas)

Life Settlement Submission Package-PDF (for Texas residents)

Verification of Coverage Form-PDF (for Texas residents)