MyNoteMarket

There are numerous potential buyers for your life policy, it is hard to choose the right one. But with a little due diligence(research), you can select several that are reputable and right for you. One important point you should be aware is whether you are dealing with a principal or broker. If you a dealing with a principal, you may get better pricing due to the absence of the broker fee. Most principals use brokers to bring them business but there is a definite cost associated with this added layer of service. But brokers can be valuable in finding multiple buyers and could potentially get better pricing even after factoring in their fee. The buyer should pay the broker fee, not you.

Here is a guide to help you choose the right buyer:

1. How long have they been in business?
2. Is their contact and business information verifiable?
3. Are they bonded or insured?
4. What is their underwriting criteria?
5. How is their Better Business Bureau rating?
6. Do they handle your type of life insurance policy?

Here is some basic terminology for life settlements:

Accelerated Death Benefit - an advance settlement of death proceeds payable under a life insurance policy.

Cash Surrender Value - The cash value after surrender charges have been deducted.

Death Benefit - the face amount of the life insurance policy paid upon the insured's death.

Accumulation Value - The dollar value, at any Valuation Date, of all amounts accumulated under the Policy.

Beneficiary - A person who receives continued annuity contract payments if the annuitant / owner dies while payments are still due.

Contract(Policy) Owner - The person(s) or entity that has all rights to the contract. Usually the person(s) or entity that purchases the policy.

Insured - The individual whose life is covered by an insurance policy.

Escrow Agent - An entity designated by the provider and recognized by governing state authority (i.e. Insurance Commissioner) to accept, verify, and /or transmit documentation and pay the proceeds of a financial transaction. For more info see: Escrow- Wikipedia

Life Settlement- Is the sale of an in-force life insurance policy to a third-party buyer. It is a financial transaction where the buyer acquires the policy ownership, names itself the beneficiary, and is solely responsible for future premium payments. For more info see: Life Settlement- Wikipedia

Lump Sum - A sum of money paid in a single installment.

Provider - The person/entity that provides management of the life settlement transaction on behalf of a third-party buyer. Their duties include: obtaining life expectancy calculations from approved life settlement consulting actuaries, performing policy examination, and calculates the “fair market value amount.