Life Settlement FAQ – When Will I Get My Money And From Whom? And What Happens After?

By Randall Rothschild | Life Insurance

Apr 15
Waiting - when? - Life Insurance Settlement Information

If I enter a life settlement contract, when will I get my money and from whom?

The answer to this question depends on how the provider runs its business…Some providers use an escrow agent or trustee to handle the money that will be paid to you. The escrow agent or trustee will send you the money within three business days of the date the insurance company confirms to the provider that the transfer of ownership has been completed.

What happens after I get my money?

After the provider has paid the owner for the sale of the policy, they may begin calling to check on the health status of the insured.

What if I don’t want to be contacted about my health status?

If you do not want to be contacted about your health status, you may appoint an adult person or persons to be contacted on your behalf. That person must be in regular contact with you and you must give the provider their name, address and phone number. Once you give the provider this information, they may not contact you unless they have tried and have not been able to reach your contact person for more than 30 days. If you need to, you can change your contact person at any time by sending a written notice to the provider.

How will I know who will be calling me or my contact person about my health status and how often can they call?

The provider must give you the name, address, and phone number of the person who will be contacting you or your contact person(s) about your health status. If your life is expected to end in one year or less, contacts to check on your health status are limited to once every 30 days. If you are expected to live for more than one year, contact is limited to once every three months.

Will the provider be calling my doctor to check on my health status?

Some providers will use your signed medical release form to check with your doctor for updates on your health status. The medical release form tells your doctor that you've authorized the release of your medical information to the provider, their broker, or provider representative.

If you decide you do not want the provider to contact your doctor, you have the right to withdraw your medical consent in accordance with law.

 

Life Settlement Frequently Asked Questions…

 

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