Innovative Life Settlements represents institutional funders that buy and hold portfolios containing multiple insurance policies as a long term investment. As a means for diversification, our investment partners typically invest in many other asset classes, with life settlements representing only a portion of their invested funds.
Innovative Life Settlements evaluates each case against an exacting set of criteria. Though each insurance policy and case has a degree of uniqueness, the evaluation process generally follows these steps:
Individual policyholder “cases” are submitted to Innovative Life Settlements through a life settlement broker.
The life settlement broker provides a copy of the life insurance policy, a current policy illustration, two years of medical records for the insured, as well as other documents that may be requested.
Following a thorough evaluation of the policy, a potential life settlement value is determined for each case submitted. This evaluation includes a review of the submitted medical records by an independent medical underwriter.
If a Innovative Life Settlements funding source is interested in purchasing the policy, an offer to purchase the policy is communicated to the policyholder’s broker and financial advisor (not all policies qualify for life settlement).
If the offer is accepted, closing documents are prepared and sent to the policyholder through their life settlement broker.
Upon closing, change of ownership and beneficiary forms are sent to the life insurance carrier.
The insurance company acknowledges and confirms the changes.
Funds reflecting the agreed upon life settlement purchase price are transferred from an independent escrow agent to the former owner.
The life settlement amount offered to the owner will be less than the face amount of the policy but often substantially more than the policy’s cash surrender value. When a policy is sold, the buyer becomes the new owner and beneficiary of the policy and assumes the responsibility for the premium payments and maintenance of the policy.
