The overall process from the time you start with Ovid to the point of receiving money can take 3 to 8 weeks. Much of this time depends on you, and how quickly your insurance company is willing to transfer ownership and beneficiary of the policy. Here is a quick overview of the process.
Determining eligibility and requesting a quote for your life insurance just takes a few minutes and it is completely free. You just need to answer a few questions about yourself and your policy, then Ovid will let you know if you are likely to qualify for a life settlement.
Learn more about what makes you eligible for a life settlement.
After we evaluate of your policy, you will be connected with a licensed life settlement buyer who can give you a cash offer for your life insurance policy.
Depending on your policy size and health condition, the policy buyer may work to obtain your medical records and then pay an underwriting firm to run a life expectancy on you. None of your involvement is required for this process, but these things can affect your life settlement offer. You can learn more about how life settlement offers are calculated here.
If you accept your life settlement offer, the policy buyer will facilitate the closing process. Then, they will send you a packet of documents to sign. You will sign the Agreement of Sale and Transfer of Policy Ownership.
Once the documents are signed, the buyer will fund an escrow account (generally managed by a large bank) with the settlement amount - so that you can verify the money is ready to transfer under certain conditions. Now the licensed provider can request the policy's owner and beneficiary to be transferred from you to the buyer.
Once the insurance company transfers ownership and beneficiary of your policy, an escrow agent will release the life settlement funds to you. Just collect your money and never pay another premium on the policy.
Now that you understand how the life settlement process works, learn about what a life settlement is.
Overall, the process can be made simple by the right life settlement provider. You want someone who really understands life settlements to manage things for you or point you in the right direction. By using an escrow account, you can validate that the money is ready for release before you sign over ownership and beneficiary of your policy to the buyer.
Additionally, insurance regulation mandates that you be given a "rescission period". This means that you will have a certain number of days (varies depending on the state) after you sell the policy and receive your settlement offer to change your mind. During this period, you can return the settlement offer and have your policy ownership transferred back to you from the buyer. All large institutional life settlement buyers are familiar with this process. You can read more this here.