There are several financial institutions that provide Senior Life Settlements. They purchase an existing policy from a senior policyholder and try to sell it to a buyer, who will be responsible for the policy premiums from that time forward. Such companies charge their fees as brokerages on the face value of the policy held.

To be eligible for services from a settlement provider, the policyholder must be above 65 years of age and must have a minimum amount of policy face value. This minimum amount varies from company to company. Also, by the time at which the policyholder approaches the provider the policy must have crossed the contestability period, which is generally two years from the date the policy is taken.

The process of Senior Life Settlement is a fairly easy one. The settlement provider makes the policyholder fill out a form. There are medical examinations (though some companies waive the medical examination). Then, a suitable amount is quoted to the policyholder. This amount is higher than the surrender value of the policy from the parent company. If that is acceptable, then the settlement provider holds the policy and collects its premiums into an escrow account.

The second part of the responsibility of the provider is to scout for a suitable buyer. Bids from buyers are invited. The lowest possible bid is chosen, so that the settlement provider stands to make a larger profit. Once the buyer is selected, the poli

cy is transferred into their name and the necessary documentation is completed with the company that provided the policy in the first place.

Companies that provide Senior Life Settlements also provide viatical settlements. These two settlement procedures usually go hand in hand and are often confused with each other. In fact, the Senior Life Settlement industry is an offshoot of the viatical settlement industry, which has been around for several years.

Most settlement providers were earlier life insurance agents. This helps their job, as they are acquainted with both the policyholder and the company issuing the policy. Many providers are still performing the jobs of policy agents. Even during settlements, they may either work independently or work in association with policy agents, who know their clients better.

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