POLICY OWNER

POLICY OWNER

A Life Settlement is the sale of a life insurance policy to a third party for a value in excess of the cash surrender value, but less than the death benefit

 

Life Settlements represent an important solution for a growing number of people who thought they were stuck with a life insurance policy they no longer need. Many people do not realize a life insurance policy is their personal property and can be sold.

  • The seller receives cash
  • The buyer pays all future premiums
  • The buyer receives the death benefit upon the death of insured

As a senior policy owner you may want to consider a life settlement to:

What is the Qualification Criteria?

Age
65 years or older (Younger insureds may qualify depending on certain medical conditions)
Health Status
Life expectancies up to 180 months
Type of Insurance
Universal Life (UL), Survivorship Universal Life (SUL), Convertible Term Life, and Whole Life (WL)
Death Benefit (Face Amount)
$100,000+
Policy Premiums
Illustrated premiums that are less than 5% of the face amount
Date of Issue
The policy must be in force for 25 months before it qualifies for a settlement. Some states require the policy to be in force 4-5 years.
Type of Ownership
Individual, corporate, foundation, trust, non-profit organization or business
Carrier
U.S. based only, A.M. Best Rating of B++ of better

What is the process

  1. Submit an in-force illustration

  2. Magna will review the policy and call you with an informal range of offer

  3. Submit a HIPAA form and necessary additional information

  4. Magna will obtain medical records and life expectancy report on the insured

  5. Magna will extend a formal offer

Magna Life Settlements prices policies using a proprietary actuarial formula. There are more than 20 factors considered when generating an offer on a policy. Three of the top factors used in evaluating a policy include the face amount (death benefit), the amount of premiums due each year on the policy, and the life expectancy of the insured. Every policy and insured is unique which makes it impossible to estimate the value of a policy without an application, medical questionnaire, and in-force illustration.

Life Settlement Calculator

How much can I get for my policy?
Use our quick and easy life settlement calculator to estimate your payout value.

The first step in the process is determining if a life settlement is a viable option for your policy. The items we need in order to evaluate your policy are an application, a medical questionnaire, and an in-force illustration. Once all three requirements are received, Magna will evaluate your policy and determine a possible range of offers. The initial evaluation will take 5 – 7 business days.

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.

Changing the way you
think about insurance


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Our dedicated team is reviewing your information and will contact you shortly to discuss life settlement options and next steps.

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