Life Settlement
FAQ
How much can I get for my policy?
- More than the cash surrender value (what the insurance company pays you if you surrender it).
- Less than the death benefit (what your beneficiaries receive when you die).
- With a little info — date of birth, health status, sex, policy death benefit — we can estimate how much cash you could receive at auction.
How does the process work?
- You complete an application, including giving us permission to acquire your policy information and medical records.
- We obtain a professional, actuarial-based report on your life expectancy.
- We create an online auction and actively market your policy to up to fourteen different life settlement companies.
How long does it take?
- Typically, five to eight months from the time of application.
What do you charge?
- Our fee is the least of these three amounts:
- 6% of the death benefit.
- 30% of the gross offer.
- 1/3 the value created (the winning bid minus the cash surrender value).
- We cover all expenses relating to the application and auction process. In exchange, we ask that you keep the insurance policy paid current until the settlement process is complete.
Why use Monarch when I could apply to a buyer directly online?
There are two big reasons:
- We are brokers, not buyers. We work on your behalf and assume a fiduciary responsibility to the seller. Our goal is to get the highest possible amount for your policy.
- We take your policy to AUCTION. Rather than taking the first offer you receive from a buyer, our auction lets several buyers bid against each other and potentially drive the selling price up.
Each client’s experience varies, and there is no guarantee that a life settlement will generate an offer greater than the current cash surrender value. In such cases, the client can always surrender their policy to the carrier if the coverage is no longer needed. Valmark Securities supervises all life settlements like security transactions, and its registered representatives act as brokers on the transaction and may receive a fee from the purchaser. Once a policy is transferred, the policy owner has no control over subsequent transfers and may be required to disclosure additional information later. If a continued need for coverage exists, the policy owner should consider the availability, adequacy and cost of a comparable coverage. A life settlement transaction may require an extended period to complete and result in higher costs and fees due to its complexity. Policy owners considering the need for cash should consider other less costly alternatives. A life settlement may affect the insured’s ability to obtain insurance in the future and the seller’s eligibility for certain public assistance programs. When an individual decides to sell their policy, they must provide complete access to their medical history and other personal information.