How Life Settlements Work — From First Review to Final Funding
Discover how Trust Life Settlements helps policyowners explore the value of their life insurance policies, obtain competitive offers from institutional buyers, and navigate the settlement process through closing.
Our independent, seller-focused flat-fee life settlement broker model combines competitive buyer outreach with transparent compensation.
The Complete Life Settlement Process
Seven steps to sell a life insurance policy, from your first inquiry to final funding: a clear, transparent, seller-focused process.
- Step 01Initial Inquiry
A confidential conversation about your policy and goals.
- Step 02Preliminary Policy Review
An initial eligibility assessment of your policy details.
- Step 03Case Preparation & Analysis
With your authorization, we prepare your case for the market.
- Step 04Multiple Institutional Buyers
Your case is presented to multiple qualified buyers.
- Step 05Offer Review & Selection
We explain each offer, the costs, and your estimated net proceeds.
- Step 06Final Documentation
We coordinate the closing documents and guide you through signing.
- Step 07Funding
You receive your lump-sum settlement payment.
Ready to Discover What Your Policy Could Be Worth?
A confidential policy review is the first step. Learn whether your life insurance policy may qualify for a life settlement, or try our life settlement calculator for a quick estimate.
The Life Settlement Process, Step by Step
Exactly what happens at each stage, and what you can expect from us.
- Step 01
Initial Inquiry
Begin with a free, confidential conversation about your policy and financial objectives. We explain how life settlements work, answer your questions, and help you decide whether exploring a sale makes sense. There is no obligation to proceed.
- Step 02
Preliminary Policy Review
We evaluate basic policy information to determine whether further evaluation may be appropriate, including:
- Coverage amount (death benefit)
- Current premiums
- Policy type
- Insured's age
- General health considerations
- Step 03
Case Preparation & Analysis
With your authorization, we coordinate the necessary policy documents, medical records, and underwriting information to prepare your case for institutional buyer review.
- Step 04
Multiple Institutional Buyers
We present eligible policies to multiple qualified institutional buyers to seek competitive offers. Different buyers may value the same policy differently, so competition matters. Buyer interest and the number of offers depend on the characteristics of each case.
- Step 05
Offer Review & Selection
We review the available offers with you, including the gross offer, our disclosed flat broker fee, applicable transaction expenses, and estimated net proceeds. You decide whether to accept an offer.
Don't just compare the offer. Compare what you keep.
- Step 06
Final Documentation
If you accept an offer, we help coordinate the required closing documents, ownership verification, beneficiary information, disclosures, and other transaction requirements. Closing requirements and timelines vary by policy, buyer, and state law.
- Step 07
Funding
Once the transaction satisfies closing requirements, funds are released and you receive the settlement proceeds, less the disclosed broker fee and applicable costs. The buyer assumes responsibility for the policy, and any statutory rescission rights under your state's law remain applicable.
Already have an offer from another broker or buyer? Get a free second opinion before you sign. See our published flat-fee schedule to know exactly what you'll pay.
Trust Life Settlements vs. Traditional Brokers vs. Buyers
See why clients choose Trust Life Settlements as their independent life settlement broker.
| Factor | Direct Buyer | Traditional Broker | Trust Life Settlements, LLC. |
|---|---|---|---|
| Who They Represent | Represents its own purchasing interests | Represents the seller, though compensation may also come from buyers depending on the arrangement | Seller-only representation, with a fiduciary duty to the policyowner |
| Fee Structure | No broker fee, but the buyer sets its own purchase price | Typically percentage-based (varies by broker and transaction) | Published five-tier flat-fee schedule. No percentage commissions, paid from proceeds at closing |
| Buyer-Side Compensation | Not applicable | Varies by broker | No buyer-side compensation |
| Funding Arm & Markups | Purchases policies for its own account | Varies by firm | No funding arm, no bid markups, no undisclosed spreads |
| Buyer Competition | A single buyer's offer, without competitive bidding | May present to a selected group of buyers | Eligible cases presented to multiple qualified institutional buyers |
| Transparency | Limited visibility into competitive market pricing | Fee may not be clear until closing | Fee disclosed upfront, with an estimated net-proceeds comparison for each offer |
| Obligation | May present time-limited offers | May require exclusivity agreements | No obligation to accept any offer |
Practices of other brokers and buyers vary. Comparison reflects general industry structures, not any specific firm.
Common Questions About the Process
Answers to what most clients ask before getting started. Browse the full life settlement FAQ for more.
How long does a life settlement take?
Timelines vary by policy, insurer, buyer, and state requirements. Many transactions take about 2 to 3 months from initial inquiry to funding, while some expedited cases close in under 4 weeks and others take longer. The preliminary review usually takes 24 to 48 hours; most of the remaining time goes to gathering medical records, buyer review, and closing paperwork.
Do I have to pay anything upfront?
No. You pay nothing out of pocket. Our flat broker fee is disclosed upfront based on our published fee schedule, and it is only collected at closing from the settlement proceeds after you accept an offer. If your policy does not sell, you owe us nothing.
Can I change my mind after starting the process?
Yes. You are under no obligation to accept any offer, and you can withdraw your policy from consideration before closing with no fees owed. After closing, many states also provide a statutory rescission period during which a seller may cancel the transaction, subject to that state's requirements.
Will selling my policy affect my other insurance or benefits?
A life settlement does not affect your health insurance, Medicare, or other life insurance policies. However, settlement proceeds may affect eligibility for means-tested programs such as Medicaid, and may have tax consequences. We recommend consulting your financial, tax, or legal advisor about your specific situation.
What happens to my policy after I sell it?
The buyer becomes the new owner and beneficiary of the policy and takes over all future premium payments according to the completed transaction documents. You receive your lump-sum payment and have no further premium obligations for that policy.
Ready to Get Started?
A free, confidential policy review takes less than 10 minutes and comes with no obligation.
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