I was just contacted today by my mom and uncle who manage to do everything for my grandparents (94,92). They have a million dollar “last to die”" policy but they aged out of the initial terms. Their premiums are now $7500 a month and due to the cost they both agreed it is better to sell the policy rather than wait it out. Neither are terminal but both have in home care due to dementia like symptoms (not sure if they have been officially diagnosed as I have just requested medical records). Anyways, they tasked me with selling the policy. I did some research but it looks like most people use a broker? Im trying to cut down on researching this for days or weeks to figure out the best way.
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You should work with a broker who has a life settlements license. The broker will help you request in-force illustrations in different formats. Then, your parents will need to submit medical records to a few underwriters at companies specializing in this market. We handle a lot of these cases. Keep in mind, though, that they’re almost reverse underwritten meaning, the companies bidding on the policy will assume your grandparents are going to live a long time.
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At those ages and with that amount, finding a buyer shouldn’t be an issue. Covenant advertises a lot but usually offers lower payouts. We usually shop around with multiple buyers to get the best price for our clients. This process takes time gathering illustrations, medical records, completing paperwork, escrow, etc. Working with an experienced agent can help you understand what to expect and what’s needed to get the best deal. Finding the right agent can be tricky since not all agents understand this process, so it’s important to research who’s handling the negotiations. What other questions do you have?
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What’s the best way to find a good agent. What is the average cost/commission for the whole process?
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If you want to google look for ‘life settlements’. But selling old folks life insurance is a thing as investors make money at it.
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My family went through a similar situation with life insurance, and I know it can feel overwhelming. Selling a policy takes effort, but it looks like you’re doing your best to support your grandparents. Taking the time to research brokers can help reduce stress and save you time.
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Thank you good people!