Important Documents And Why You Need Them Handy When Considering A Life Settlement.
Important Documents And Why You Need Them When Considering A Life Settlement.
Selling a life insurance policy through a life settlement can be a strategic financial decision, especially for seniors seeking to access cash for medical expenses, retirement, or other financial needs. However, completing this process requires careful preparation and documentation.
Two crucial documents are indispensable:
- The life insurance policy
- Medical records release form
Here’s why these documents matter and how they contribute to a smooth transaction.
Document One: The Life Insurance Policy
Why It’s Important
The life insurance policy document contains essential information about your policy, including the face value, premium structure, and policy type (whether it’s term, whole, or universal life insurance). Buyers and settlement providers need this document to verify that your policy qualifies for a life settlement and to assess its value. Since you will likely be speaking and engaging with many companies, keep this document handy.
First, you will need to verify that the policy is eligible for a life settlement. Then check the policy’s fine print for alternative options that may be even more valuable than a life settlement. An expert from Windsor is available to review your policy to confirm you’ve been made aware of all your available options.
In the case of Ted Muller, neither his life insurance company nor the companies offering to buy his policy made him aware of his death benefit rider. Windsor’s Cindy Deacon was the only person to point this option out to him, even though it meant she might not receive a commission.
What It Provides
- Policy Ownership Information: Identifies the current owner of the policy.
- Beneficiary Details: Specifies who would receive the policy payout upon death.
- Premium Obligations: Lists the required premium payments to keep the policy active.
- Policy Type: Helps the buyer understand the flexibility and potential long-term costs associated with the policy.
How to Obtain It
If you don’t have a copy of your policy, contact your insurance provider or agent. Request a complete and updated copy to ensure that all information is current and accurate.
Document Two: Medical Records Release Form (HIPPA Authorization)
Why It’s Important
A life settlement transaction involves evaluating the life expectancy of the insured individual. Buyers and underwriters need access to your medical records to make an informed assessment. The Health Insurance Portability and Accountability Act (HIPAA) authorization form allows the settlement provider to legally obtain these records.
What It Provides
Health History Information: Provides insight into any medical conditions that may affect life expectancy.
Life Expectancy Evaluation: Essential for determining the offer amount for your policy.
Risk Assessment: Helps buyers gauge the overall risk involved in purchasing your policy.
How to Obtain and Complete It
You can typically get a HIPAA authorization form from your life settlement broker or directly from the life settlement provider. Ensure that you complete the form accurately and sign it before submission.
Any buyer you consider will want to review medical records.
Signed Releases For Medical Records
Gathering medical records can be time-consuming and frustrating at times. Windsor can do this part for you. By completing our inquiry form, you authorize Windsor to manage the required emails and phone calls on your behalf. Keep in mind, the life settlement process is always faster if you do this part, but we are happy to manage this process for you.
Once we receive a copy of the policy and complete medical records, we can give you an idea of what the cash offer will be.
It’s important to note that Windsor takes your privacy very seriously. We don’t share your personal information with anyone.
Call Us Today!
We’re available Monday-Friday 9am-5pm CT to discuss your policy.
- Author: Windsor Life Settlements
- Published Date:
