The Life Settlement Contract Closing Process

Selling your life insurance policy is a major financial transaction. As such, the process includes extensive contracts to ensure a smooth transfer of ownership and to avoid any issues in the future.

1
Reach a Sales Agreement The first step is for the buyer and policyowner to come to an agreement on purchase price and any additional consideration for the policy. The purchase may consist of an all-cash offer, continued coverage with no future premiums, or a combination of both.
2
Contract Issuance Once an agreement has been reached, Life Equity will issue a closing contract which will define the parameters and terms of the transaction, outline required disclosures and ensure that all necessary parties understand the transaction.
3
Contract Diligence Once the contract has been signed by all parties, the buyer will then analyze the insured’s medical information and other information provided by the policyowner for accuracy. After receiving the required documents and performing diligence, the buyer will file to transfer the ownership of your policy with the insurance carrier.
4
Transferring Ownership Using the agreements you signed, the buyer will initiate the transfer of ownership and beneficiary with the insurance carrier. This process could take up to 30 days depending on the carrier. Once complete and all changes have been verified, the escrow agent will release the funds to your account. Remember, selling your life insurance policy is your right as mandated by the U.S. Supreme Court. Don’t let your life insurance company tell you otherwise.
5
Rescission Period In some states, you are provided a rescission period by law, meaning you have a specific amount of time in which to reverse the transaction if you change your mind. Once the rescission period has ended, the ownership transfer is irrevocable by either party. You can speak with Life Equity or your state insurance regulatory body to find out what the rescission period is in your state.
6
Post Transaction Follow-Up After the transaction is complete, the buyer may have a right to monitor the insured’s status for the purpose of managing the life insurance policy. This typically involves a brief phone call every few months where the buyer will ask if there have been any changes in the insured’s health, state of residence, or other items that may impact the policy.
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How Can I Use the Money from Selling My Life Insurance?

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Your life insurance policy is an asset that can be sold, just like your home, automobile, or other personal property. As such, you can use the money you receive from selling your policy however you want. Policyowners who have contacted Ovid to sell their policy have used their payouts in a myriad of ways, from spending on necessities to taking the trip of a lifetime. Just imagine how you could use your money!

Pay off debt, fund medical care, or invest.

A sudden cash injection can help pay down your debt, fund medical care for you or a loved one, or take advantage of an investment opportunity.

Take the trip you’ve been dreaming of.

Many people use their settlement to fund a dream vacation or to make memories with their family while they still can.

Help your family now rather than later.

With a life settlement, you can help your family now while you’re around to share in the enjoyment that cash can bring those you love most.

Anything else you can dream of!

There are no restrictions to how you use the money you receive from selling your life insurance. Let your imagination run wild!

Here’s What People Are Saying.

Best customer service I have experienced in years!

Tammy, June 2024

When my only option was to walk away from a term life insurance policy or sell, I chose the latter … Ovid is the one you need to call.

Suzanne, May 2024

Working with Ovid…was wonderful. We [are] completely satisfied with our results and the support given by Ovid.

Robin, September 2023

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