Is a life settlement legal?

Yes, under United States Supreme Court precedent stretching back almost a century, a life insurance policy is considered your personal property. Like any other tangible or intangible personal property, you can sell it, trade it, or give it away. Your insurance company generally has no right to block or question your assignment of the policy rights.

Why haven’t I heard about life settlements until now?

Life Settlements have been available as a way to tap a hidden asset for some fifteen years, and although the industry has grown rapidly, it is still fairly young. Almost thirty billion dollars of face value has already been settled. Most policyholders simply never knew this was an option for them, especially to use to make a once in a lifetime purchase.

Who buys life insurance policies?

We work ONLY with institutional investors, such as pension funds, charitable endowments, universities, and hedge funds. These investors view life policies as a way to diversify their portfolios with an investment that has return uncorrelated to traditional investments. We NEVER use individual or small investors to fund policies.

Can I change my mind after I get a life settlement offer?

Yes. Even after you accept an offer after the property escrow closes, you will always have at least 14 days to find alternative means to finance your property. In some cases, however, the life settlement provider may charge you an administrative fee if you rescind the transaction after closing.

How does LSS know how the insured is doing?

Generally, a policy servicing company will contact you or your designated relative or doctor by phone or letter once every six months.  Details will be disclosed in the contract. You should carefully review these provisions before accepting an offer to ensure that these inquiries will not be intrusive; however, our policy service representatives are so nice to talk to you’ll look forward to our call!  Our representatives are considerate and discreet in their inquiries.

How can I get my life insurance policy information?

If you know your life insurance policy number, there is a form letter to fill out to request your policy information in our forms section of the website.