As a direct buyer, Abacus has created a streamlined process to make selling your policy fast, while cutting out the middleman so that we can pay you more. Abacus Life breaks down the method of how to sell your life insurance policy into 8 simple steps:
- Deciding to Sell
Before deciding to sell your policy, the policyholder and their beneficiaries must consciously discuss and weigh out all options before pursuing this option—this means contacting your financial advisor or the Abacus team and looking into all alternatives to ensure that it is the most beneficial solution for you and your family.
There is no cost or obligation to accept an offer at any time.
- Determining Eligibility
Certain specifics determine if an individual will qualify, such as premiums, the life expectancy of the insured, and the death benefit. Abacus can let you know if you are qualified with a settlement.
By filling out our Life Settlement Calculator, Abacus can determine your eligibility and provide you with a free and instant estimate.
Once you choose to continue with selling your policy, the information disclosed will be used by an in-house medical underwriter who will calculate the insured’s life expectancy, by using medical records to determine how much the policy is worth, at no cost to the insured.
- The Offer
Abacus would then extend an offer to the insured. The proposal would be more than the price, but less than the net death benefit. The buyer must be licensed in the state in which the owner of the policy resides.
- Acceptance
If the amount offered by the licensed buyer is acceptable to the policy seller, they can choose to accept the offer and request the required documents for review.
- Contracts
Currently, the licensed buyer generates state-approved contracting documents.
These documents record the life settlement transaction and spell out the agreement between the seller and the purchaser. Both parties must sign and notarize the contracts.
- Verification
Once the contracts are executed, and all the required enclosed documents are received, the verification process begins. Often completed by a third party like a law firm, this verification agent will check that all the contracting forms have been completed correctly. They may also check that the policy is in full force and in good standing with the insurance company.
They will verify that the funds for the purchase are in an escrow account for the policy seller.
- Change of Ownership
Subsequently, we send a request for an ownership change to the insurance carrier. This step ensures that the owner is changed from the current policyholder to the buyer.
- Funds Transfer
After the insurance carrier has confirmed that the purchaser is listed as the owner, the escrow agent is instructed to release the funds to the seller. The new owner is now responsible for all premiums, and the seller has received payment for the transaction.
This is the last step of the process and concludes the transaction. The insured is then free to use the money received at their discretion.
