Life Settlement FAQ
Why should I consider a life settlement?
Many seniors are paying premiums on life insurance policies they no longer need or want while at the same time the expenses associated with retirement years are mounting. A life settlement provides a solution for both of those issues with one transaction.
How do I know if I qualify for a life settlement?
Start with Magna’s simple calculator to determine if a life settlement might be a good fit for you. If the results are favorable, a consultation with a Magna representative will direct you through the next steps to assess your specific situation.
How will Magna come up with a price for my policy?
Our experienced representatives consider the price of premiums, the structure and type of your policy and the health and medical history of the insured to come up with the best possible offer for your life insurance policy.
What types of insurance policies are best suited to life settlements?
Most policies sold in life settlements are universal policies, but term life insurance can often be converted to more permanent policies and sold for a cash windfall.
What types of medical information will the provider need to offer a life settlement?
As part of the life settlement process, a consumer completes a medical questionnaire and a health interview with a Magna representative, and he or she also gives Magna permission to access medical records for an accurate assessment of the individual’s life expectancy.
Are there situations where life settlements aren’t the best option?
Generally speaking, when a policy holder is more medically impaired than the original policy projected, a life settlement is an excellent option. There are some situations, particularly those in which an individual is healthier than anticipated or the policy wasn’t highly rated at the time it was issued, when a life settlement is not the best choice for an unwanted policy.
How long will the process take?
If you fill out our life settlement calculator today and schedule a meeting with a Magna representative, we will direct you to fill out the paperwork, we will gather the pertinent information and we should be ready with an offer in one to two weeks.
What will happen to my life insurance policy?
After the settlement transaction, the buyer pays all future premiums and receives the death benefit upon the death of the insured.
What if my insurance agent has discouraged me from pursuing a life settlement?
Any life insurance agent with a client’s best interests in mind should disclose the life settlement option, and more and more states are passing laws requiring such disclosure. Consumers have the right to comprehensive information about their financial and insurance options.