About

Life Settlement Company

A life settlement company helps qualifying policy owners sell life insurance policies they no longer need or want. If you’re considering selling your policy, understanding how licensed life settlement providers work can help you make a more informed decision.

Settlement Group is a licensed life settlement provider company that has been helping policy owners for more than 20 years. We are licensed in 38 states and Washington, D.C. As a licensed provider, we work directly with qualifying policy owners, coordinate the transaction, and pay policy owners at closing. We are also a proud member of the Life Insurance Settlement Association (LISA).

What Does a Life Settlement Company Do?

A life settlement company guides policy owners through the process of selling a qualifying life insurance policy. The company evaluates the policy, obtains the necessary medical and policy information, arranges funding, coordinates the required documentation, and completes the transaction.

A life settlement company generally:

Reviews the policy to determine whether it may qualify
Collects medical and policy information with the policy owner’s authorization
Evaluates the policy and the cost of maintaining it
Arranges funding for qualifying transactions
Presents a cash offer to the policy owner
Coordinates the closing and ownership transfer
Pays the agreed-upon settlement amount at closing

Once the transaction is complete, ownership of the policy transfers to the purchaser designated in the closing documents. The new owner becomes responsible for future premium payments and receives the policy’s death benefit when the insured dies.

Many policy owners consider a life settlement after retirement, when estate planning needs change, when premiums become difficult to afford, or when they simply no longer need the coverage.

What Is the Difference Between a Life Settlement Provider and a Broker?

The terms are often confused, but a life settlement provider and a life settlement broker serve different roles.

Life settlement providers work directly with the policy owner to complete the life settlement transaction. The provider evaluates the policy, arranges funding, prepares the transaction documents, coordinates the ownership transfer, and pays the policy owner at closing. Depending on how the transaction is funded, the policy may be acquired for the provider’s own account or by another purchaser or financing source.

A life settlement broker represents the policy owner and seeks offers from licensed providers in exchange for compensation. Many times, broker fees can be 30% or more of your offer.

Settlement Group is a licensed life settlement provider. We work directly with policy owners throughout the transaction, from the initial policy review through closing.

How Do I Know If a Life Settlement Company Is Licensed?

Life settlement laws vary by state, and many states require companies to hold a license before entering into life settlement transactions with policy owners.

Before working with a life settlement company, verify that the company:

Holds the required license in your state
Complies with applicable state regulations
Provides the disclosures required by law
Protects your personal and medical information
Has experience completing life settlement transactions

You can ask the company directly for information about its licensing or contact your state’s insurance department to verify its license.

Settlement Group is licensed in 38 states and Washington, D.C. We meet each state’s licensing requirements and provide the disclosures required by state law throughout the transaction process.

Is It Safe to Work with a Life Settlement Company?

Working with an experienced, licensed life settlement company can provide important consumer protections throughout the sale of your policy.

A reputable company should:

Explain the life settlement process clearly
Answer your questions honestly
Obtain your written authorization before requesting medical records
Provide all disclosures required by state law
Protect your confidential medical and policy information
Clearly explain the offer and closing documents
Tell you how and when you will receive payment

You should never feel pressured to accept an offer or sign documents you do not understand. Take time to review the terms of the transaction and ask questions before making a decision.

Choosing an experienced, licensed company can give you greater confidence throughout the life settlement process.

How Do Life Settlement Companies Make Money?

Life settlement providers arrange the purchase of qualifying life insurance policies as investments. The purchaser funds the settlement payment, becomes responsible for maintaining the policy, and receives the death benefit when the insured dies.

The costs associated with a life settlement investment may include:

The settlement amount paid to the policy owner
Future policy premiums
Administrative expenses
Medical and policy evaluation costs
Transaction and servicing expenses

The financial return depends on the death benefit, the total amount paid to acquire and maintain the policy, and how long premiums must continue to be paid.

Life settlement investments involve financial risk. If the insured lives longer than projected, additional premiums must be paid, increasing the total cost of the investment. No particular return or outcome is guaranteed.

Why Choose Settlement Group?

Settlement Group has been helping policy owners for more than two decades. As a licensed life settlement provider, we work directly with qualifying policy owners and guide them through each stage of the transaction.

When you work with Settlement Group, you can expect:

More than 20 years of life settlement experience
Licensed in 38 states and Washington, D.C.
Direct communication throughout the transaction
Clear explanations of the process and required documents
Secure handling of medical and policy information
Dedicated support from the initial review through closing
Payment of the agreed-upon settlement amount at closing

If you own a life insurance policy you no longer need or can no longer afford, a life settlement may allow you to convert its value into cash that can be used for retirement, healthcare expenses, long-term care, debt reduction, or any other financial need.

Learn Whether Your Policy Qualifies

Not every policy qualifies for a life settlement, but many permanent life insurance policies and some convertible term policies may be eligible. Settlement Group can review your policy and explain whether a life settlement may be available based on your individual circumstances.