How Does The Process Of Selling A Life Insurance Policy Work?​

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How Does The Process Of Selling A Life Insurance Policy Work?​

When an individual or entity decides to sell a life insurance policy the best course is to contact a life settlement broker such as Windsor. Most brokers have the tools and capability to complete a preliminary assessment that helps determine the likelihood that the policy will be purchased. These assessments are based on purchase criteria as mandated by the specific investors with whom the broker works.

If the preliminary assessment indicates that the policy and the policyholder’s characteristics meet investor purchase criteria, the insured’s medical records are required so that life expectancy reports can be ordered. This means that the insured must sign a HIPAA release giving the underwriters permission to review their health history.

All required documentation is submitted to the underwriter so that a thorough review of the policy can be completed. Once completed, the underwriter will provide Windsor with a formal, written offer which is then presented to the policy owner.

If the offer is accepted, a closing package containing all the required documentation is provided to the policy owner and the purchase funds are placed in escrow. The completed closing package is returned to the underwriter for final review and the insurance carrier is then notified of a change of ownership. Once the change of ownership has been confirmed the funds are released from escrow to the seller and the term policy is converted to Universal Life.

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