When you decide to get a life settlement from selling your policy to a third party, you have two options. While one is to work with a broker through the transaction process, another is to go to a life settlement provider. Since brokers are independent parties that mediate between the buyer and seller, they charge a commission for their services. Besides that, there are many more reasons why it’s recommended to go to a life settlement provider for smooth progress from step one to the final step of getting cash from the transaction in senior life settlements.
With that being said, you still can’t blindly trust a life settlement provider. There are a few questions that you should ask your life settlement provider so that you can make sure you’re selecting the right one. Furthermore, answers to these questions would make things quite clear to you. Here’s a list of questions that you should ask your life settlement provider.
ARE YOU LICENSED?
Most life settlement companies are licensed by the Department of Insurance that lets them purchase life insurance policies. While the chances of fraud in this industry are not exactly known, it’s still in the policyholder’s best interest to look for a life settlement provider who is licensed. You can either check the website of the life settlement provider or directly ask them if they are licensed by the state.
WHAT IS YOUR EXPERIENCE?
The senior life settlements industry is still young and growing. Not every expert has in-depth knowledge about life settlements and the transactions that follow. What matters the most is the kind of experience a life settlement provider has and how many clients he has taken. This will also help you see if the transaction process would proceed smoothly or there will be many hurdles here and there. People who are new to the industry generally face issues in completing the transaction in a timely fashion. You would definitely not want to a scapegoat.
WILL YOU SELL THE POLICY IN BUNDLES?
Life settlement providers either buy the policy themselves or sell them to another party. When they sell it to a third party, they do it either in bundles or sell the entire policy to a trusted buyer. It’s recommended to look for a life settlement provider who would sell your policy in bundles since it’s highly safe that way. So, make it a point to ask this question to your life settlement provider.
WHO WILL BE THE FUTURE POLICYOWNER?
If in case your policy is not sold in bundles, it’s quite important to ask your life settlement provider about the buyer. You have all the rights to know who is going to buy your life insurance policy and no life settlement provider can deny this information. So, make it a point to ask your life settlement provider about the buyer of your policy.
HOW WILL YOU MAINTAIN CONFIDENTIALITY?
Since you give the life settlement provider with your personal details, like medical records, current health status, and other details pertaining to your policy, it’s important that all the personal information you share is kept confidential. To further understand how the life settlement provider would ensure that, you should ask how the provider plans to maintain confidentiality. Ask the provider for a signed agreement that also states the provider should seek your permission when disclosing your information to a third party.
FOR HOW LONG WILL YOU FOLLOW UP ON MY HEALTH?
Once you sell your policy to a third party, the provider will still have to keep a check on your medical reports and status. However, one question that you’re supposed to ask the life settlement provider about is how long you would be required to provide updates about your health and how often.
HOW WILL THE FOLLOW UP PROCEED?
Every life settlement provider has a different way of keeping track of the seller’s health. While some might drop texts, some might call or send you an email. Ask your life settlement provider how they plan to follow up, and make sure you and your life settlement provider decide a means that you would be comfortable with.
These are some questions that will help you ensure that you’re working with the right life settlement provider. Since senior life settlements transaction involves money, every step you take should be carefully thought out, so you don’t land yourself in trouble or a loss.