Life Settlement Steps

At The Lifeline Program, we know that the prospect of applying for a life settlement can seem daunting to many--even to seasoned producers and financial advisors. Given the procedure and paperwork, along with the rules and regulations of each state, they can be a challenge to navigate.

However, we use our nearly quarter-century of experience and knowledge of transacting life settlements to make the process as effortless and expedient as possible for both you and your clients.

There are a number of steps in the settlement process that we would like to make you aware of; these will help us determine the value you may have inside each policy. The life settlement application timeframe can fluctuate based on the amount of time it takes us to receive particular documents, such as attending physician statements.

Finding the Right Candidates for a Life Settlement

The first and most important issue is determining whether a life settlement is right for your client, and how it matches up to his or her circumstances. For those seniors who have been adversely affected by the economy over the past several years, a life settlement may enable them to pay their daily expenses. It may even make the difference between some clients being able to keep their homes or losing them. For other clients, a life settlement may allow them to live out their golden years as they dreamed. For your higher net worth clients who may be over-insured, it gives them and you the opportunity to use the funds for other investments more suited to their financial goals.

Something important you'll want to consider is that many, if not most, of your senior clients may become part of the 85 percent who let their insurance policies lapse, according to Milliman, an independent research firm. Reasons can range from having children who are now self-sufficient, a spouse that has passed, illness, or having assets with a depreciated value. Seniors tend to simply stop paying premiums, attaining nothing from all the premium payment money they have invested in their policy. Or they take a surrender payment from the insurance company, which is characteristically far less money, if any, than a life settlement might pay.

The Five-Step Process

We would like to make you aware of the steps that will help us to quickly determine the value of each policy. Here are the life settlement stages, along with an explanation of how the process works. However, the timeframe can fluctuate, based on receipt of necessary documentation.


The key is listening carefully to your clients, and determining what their wants and needs are, to evaluate whether a life settlement may be the most beneficial course of action for them to take. Additionally, you will play an essential role in this process that will cement your relationship with them, and further enhance your reputation as their “go to” pro-active expert financial services professional for all their future fiscal needs.


Once you’ve determined that a life settlement is the right course of action, we’ll ask that you complete the application with your client and provide us with the required authorizations.


In this stage The Lifeline Program® will collect all necessary documentation including attending physician statements, illustrations, and copies of the policy itself. Since part of this stage involves cooperation with medical records departments, doctors’ offices and insurance carriers; this can take up to 2 weeks or more.


The next stage is for our pricing department to review the necessary collected documentation to determine and make an indicative bid, if your client’s policy qualifies. The Lifeline Program® has guaranteed funds, and funds all of our own life settlements “in house”, but with many other funding providers, this is not the case. If the company with whom you are dealing does not provide their own funding, you and your client may want to question this with the possible buyers.


This next stage follows closely thereafter, and involves the sharing of a bid with the policy owner to determine a potential match. If an acceptance of an offer is confirmed; then a “closing package” will be created. If the offer were to be declined, the case would close. The activities in this stage can take 5-7 business days.


At this point in time, if an offer is accepted the contracts and the insurance policy changes of ownership documents are forwarded to the policy owner or you, their representative, for review and final signatures.


Signed documents are simply returned to The Lifeline Program, as we are the funding provider. We review the package to ensure it meets our funding requirements. This process takes about 3-5 business days.


Now we are at the notification stage; the insurance policy changes of ownership documents are then sent to the insurance company to record the change in ownership. There may be a lag at times on the insurance carrier’s end; the total time for this point of processing is 10-30 days depending on state regulations.


This is when the ownership and beneficiary changes will be verified and recorded and the settlement funds will be transferred into an account designated by the policy owner. This stage typically takes 1-3 business days.