How simple (or complicated) is the life settlement process?
The process is simple. In taking the application, the policyowner and the insured agree to have the insured’s physician release the insured’s medical records for us to evaluate. We have three independent medical underwriting firms review those records and then average the life expectancy evaluations. Based on the results, we may make an offer to purchase the policy. 1. The rest is math. We bear the risk that the life expectancy evaluations are wrong and we are required to pay policy premiums for longer than anticipated. 2. An offer is made for a cash payment. If the policy is outside our portfolio criteria we offer it to a trusted institutional third-party who purchases the policy for their portfolio. 3. If the policyowner agrees to the offer price, we or the third party put the entire cash purchase price and the policyowner puts the insurance policy into a third party escrow to complete the transaction. When the ownership of the policy and the beneficiary designation are changed, the