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How Long Does a Life Settlement Take from Review to Payment?
By Saul L. Appel, CLU®, ChFC®
A life settlement is not an instant transaction. A straightforward case may move from initial review to closing in several weeks, while a complicated case can take longer. The exact timing depends on the policy, medical records, ownership, buyer interest, and how quickly required documents are supplied.
The process usually begins with a preliminary policy and health review. If the case appears marketable, the insured signs authorizations so medical records and policy information can be obtained. Buyers then evaluate the insured’s life expectancy, future premium requirements, and policy economics before deciding whether to make an offer.
Once an offer is accepted, the closing documents are prepared and signed. The buyer verifies ownership and beneficiary changes with the insurance carrier. Funds are generally placed through an escrow process and released after the required conditions are satisfied. State-required disclosures and rescission periods may also affect timing.
The most common causes of delay are incomplete medical records, an outdated illustration, unresolved policy loans, trust or business ownership questions, and missing signatures.
Speed matters, but accuracy and protection matter more. A properly managed process keeps the policy in force, documents every step, and avoids rushing the owner into an uninformed decision.
To learn whether your policy is a candidate, visit Policy-Cash.com.
Saul L. Appel, CLU®, ChFC® | President, Appel Financial, Inc. | 50+ years experience