Closing Your Life Settlement Contract

Ovid introduces qualified life settlement candidates to licensed providers (an institutional buyer of policies) who take care of all the nitty gritty details and hold your hand through the process so that you don't get confused or lost in the process. This page summarizes what happens after you have accepted your life settlement offer.

Simple, Intuitive Closing Process

Closing a Contract

The concept of a life settlement is simple but the contract can be quite extensive. Basically, the life settlement contract contains an agreement of sale and transfer of ownership - stating that you agree to sell the policy to the buyer for a certain settlement amount, and sign the right to transfer ownership and beneficiary of the policy at the insurance company level.

Once this life settlement contract is signed, the policy buyer will fund an escrow account with the settlement offer amount - meaning that you can verify the money is in an account to be released to you upon transfer of ownership of the policy.

Contract Diligence

The policy buyer will then perform diligence to verify that the medical and insurance information that you submitted is correct.

Once that health status has been verified, the buyer will file to transfer the ownership of your policy with the insurance carrier.

Transferring Ownership

The life insurance carrier may take up to 30 days to transfer ownership and beneficiary of the policy. You will be notified when this process is complete. When your insurance company transfers ownership of the policy, the escrow agent will release the funds to you. All aspects of the life settlement contract are now complete. Remember, selling your life insurance is your right as mandated by the supreme court. Don't let your life insurance company tell you otherwise.

Rescission Period

In certain US states, you are given a rescission period (depending on your state) to reverse the ownership of your policy by returning the settlement offer to the life insurance buyer. Once this rescission period has expired, the ownership transfer is irrevocable by either party. This recession is mandated by life settlement regulation. All major life settlement providers should be aware and in compliance with these laws.

After the Transaction is Complete

Depending on your state, the buyer may have a right to monitor your life status for the purpose of their investment. This might mean that they are able to contact you and ask if there have been any material changes in your health. They will then use this information to update their financial projections for their investors. Often times, they will use data services to track if you pass away so that they know when to file a claim for your life insurance.

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