Why haven't I heard about life settlements until now?

Although it has been growing at a double digit rate in recent years, the life settlements industry is still young. Tens of thousands of people have entered into life settlements, but we find that most consumers have never been told that they have the option to sell their policy.

Can I change my mind after I get a life settlement offer?

Yes. You do not have to accept any offers that we find, even if they are very good.

In fact, even after you accept an offer and the life settlement closes, you have a short period (usually 3 to 10 business days) to return the money you've received and get your policy back. (In some cases, however, the life settlement provider may charge you an administrative fee if you rescind the transaction after closing.)

Who buys life insurance policies?

Mostly institutional investors, such as pension funds, charitable endowments, universities, and hedge funds. These investors view life policies as a way to diversify their portfolios with an investment that has a return uncorrelated to traditional investments.

How does the investor know when the insured dies?

Generally, the investor finds out by asking someone (such as a designated relative or doctor) if the insured is still alive, usually about once every six months. Details will be disclosed in the contract. You should carefully review these provisions before accepting an offer to ensure that these inquiries will not be intrusive; however, most major life settlement providers are considerate and discreet in their inquiries.

How can I get my life insurance policy information?

Good question. If you don't know how your policy works, it will be hard to decide if a life settlement is right for you. If you know your life insurance policy number, we can give you a form letter to fill out to request your policy information. Just give us a call for help.

Is a life settlement legal?

Yes, under United States Supreme Court precedent stretching back almost a century, a life insurance policy is considered your personal property. Like any other tangible or intangible personal property, you can sell it, trade it, or give it away. Your insurance company generally has no right to block or question your assignment of the policy rights.

Should I work with more than one broker?

For the best results, you should hire one broker that will submit your policy to every interested and licensed provider. Unless you have hired a bad broker that isn't doing this, we strongly discourage you from retaining more than one broker -- even if it means you won't retain us.

I've been told that if I buy life insurance, I can sell it back to a life settlement provider for a quick profit. Will that work?

No, buying insurance for the express purpose of selling it later is foolish and possibly illegal. Those who suggest such schemes are con artists, and we suggest that you report anyone who suggests such a transaction to your state insurance commissioner. Open Life Settlements helps people who have bought insurance for legitimate reasons sell policies that are now unwanted or unneeded due to changed circumstances. We do not broker policies that people have bought with the intention of conducting a life settlement.