For many seniors, a life insurance policy is among their most valuable assets. Yet, as financial needs evolve in retirement, these same policies can become burdens—especially when premiums are no longer affordable, or the coverage is no longer necessary. That’s where life settlements come in. And at SFS Life Settlements, we specialize in guiding financial professionals and their clients through this powerful but often underutilized option.
Since 2006, we’ve built a reputation for doing the heavy lifting, providing peace of mind to advisors and clients alike. Our process is designed to be thorough, compliant, and, most importantly, client-focused. Whether you’re a financial planner, life insurance agent, estate attorney, or Medicare specialist, this comprehensive breakdown of our process will help you understand exactly how we deliver results—and why working with SFS means your clients are in good hands.
Why Life Settlements Matter
Before diving into the process, it’s worth taking a moment to understand why life settlements matter—especially in today’s economic landscape.
A life settlement is the sale of a life insurance policy to a third party for a lump sum payment. This amount is greater than the policy’s cash surrender value, but less than its death benefit. For seniors who no longer need their coverage, are burdened by premium payments, or are looking to improve liquidity, a life settlement can be a game-changer.
However, like any financial transaction, the devil is in the details. The life settlement market is complex and heavily regulated. Not all policies qualify, and not all offers are created equal. That’s why our process is so critical—it ensures clients get the maximum value with minimal stress.
Step-by-Step: The Life Settlement Process at SFS Life Settlements
Here’s a detailed look at how we guide each client through the life settlement journey:
Step 1: Initial Consultation and Education
Every great outcome begins with a conversation.
When an advisor or client contacts us, we start with education. We explain what a life settlement is, how it works, who it benefits, and—just as importantly—who it doesn’t. We’re honest and transparent from the outset, which is why we’re trusted by so many professionals across the country.
Our initial conversations often include questions like:
- Is the client 65 or older?
- What kind of life insurance policy do they have (Term? Universal? Whole?)?
- What is the policy’s face value and current cash surrender value?
- Has the client experienced any changes in health?
Even before receiving formal documents, we provide a preliminary assessment. This allows advisors and their clients to make an informed decision about whether it’s worth exploring further.
Step 2: Application Package and Authorizations
If the client decides to move forward, we send out our Application Package.
This includes all the necessary Medical and Policy Authorizations required to begin our evaluation. These documents give us permission to gather:
- Life insurance policy details from the issuing company
- Medical records and summaries for the insured
- Current in-force illustrations, if applicable
To make things simple and efficient, we offer these forms via electronic signature. This small convenience often makes a big difference—especially when advisors are working with older clients or those with mobility issues.
Step 3: Preliminary Evaluation
With some basic information in hand, we perform a preliminary valuation of the policy.
This step helps determine whether the policy is likely to be marketable—and if so, whether the potential settlement value is high enough to justify moving forward. Not every policy qualifies for a meaningful offer, so this step ensures clients only proceed if there’s a realistic opportunity for a favorable outcome.
We look at a range of variables, including:
- Age and health status of the insured
- Type and terms of the policy
- Premium schedule and ongoing cost
- Projected life expectancy
If the client is satisfied with our initial projections, we proceed to the most exciting phase: shopping the policy to the open market.
Step 4: Submitting to Life Settlement Providers
Once we’ve gathered all necessary documentation—including in-force illustrations, medical records, and policy authorizations—we begin the process of submitting the case to our network of more than 40 Life Settlement Providers and institutional buyers across the country.
This is where our team really shines.
Rather than sending the policy to just one or two buyers (a common industry shortcut), we create a competitive bidding environment among buyers. This drives up the price, ensuring that our clients receive the highest possible offer.
We maintain long-standing relationships with top providers in the industry, which gives us access to the best offers—and the leverage to negotiate terms when appropriate.
Step 5: Review of Offers and Client Decision
As offers begin to come in, we organize and present them to the advisor and client in a clear, side-by-side format.
We walk through the details of each offer, including:
- Lump sum payment
- Estimated closing timeline
- Terms and conditions
- Buyer reputation and track record
Our goal is to make sure the client fully understands their options and feels confident in their decision—whether they choose to accept the offer, hold off, or walk away entirely.
At this point, many clients are surprised to see how much their policy is actually worth. It’s not uncommon for life settlement offers to range from 10% to 40% of the policy’s face value—sometimes even more, depending on the specifics.
Step 6: Contracting and Execution
Once the client selects an offer and agrees to proceed, we coordinate with the Life Settlement Provider (Buyer) to generate the required contract package.
This stage can often seem intimidating—but that’s where we come in.
We go the extra mile to make the contract process seamless and straightforward:
- We tag and highlight signature sections
- We provide detailed instructions
- We answer any questions the advisor or client may have
Step 7: Change of Ownership and Beneficiary
After all contracts have been signed and submitted, we work closely with the Provider and the issuing insurance company to complete the final administrative steps:
- Changing the policy’s ownership
- Updating the beneficiary designation
These changes transfer control of the policy to the new owner (the buyer), who will continue paying premiums and ultimately collect the death benefit.
This is the final stage of the transaction—and it’s handled with precision to ensure full compliance and accuracy.
Step 8: Client Payment
Once the ownership and beneficiary changes are confirmed by the insurance company, the transaction is complete.
The client is paid within 48 hours.
Funds are typically wired directly to the client’s bank account or sent via check—whichever they prefer. Advisors can rest easy knowing that everything has been handled properly and that their client has received the best possible outcome.
Why Advisors Trust SFS Life Settlements
The life settlement process is not something most advisors deal with every day—and that’s exactly why SFS exists.
We take the pressure off advisors and ensure that every step of the process is handled professionally, ethically, and with the client’s best interest in mind.
Some of the key reasons advisors choose to work with us:
- Experience: We’ve been helping clients navigate the life settlement space since 2006.
- Transparency: No hidden fees, vague language, or confusing terms. Just clear, honest communication.
- Market Reach: With access to over 40 licensed Providers, we ensure maximum exposure for each policy.
- Compliance: We keep up with evolving state regulations and industry best practices, so you don’t have to.
- Service: We do the heavy lifting, so you can focus on advising your clients.
A Real-World Example: Turning a $1M Policy into $100K+
Recently, we worked with a client who had a $1 million term policy nearing the end of its conversion period. The policyholder was in their early 70s and no longer needed the coverage. Rather than letting the policy lapse, their advisor reached out to SFS.
We quickly evaluated the policy and determined it was a strong candidate for a life settlement. After submitting to our network and creating a competitive bidding process, we secured an offer north of $100,000—money the client used to supplement retirement income and support family goals.
It’s real results like these that demonstrate the power of a well-executed life settlement—and why the right partner matters.
Final Thoughts: A Win-Win for Advisors and Clients
At SFS Life Settlements, we believe in adding value—for both advisors and the clients they serve.
A life settlement isn’t the right move for everyone. But for the right client, at the right time, it can be a transformative financial tool. By partnering with SFS, you gain a team of specialists who understand the nuances of the industry and are committed to delivering outcomes that make a real difference.
If you’re a financial professional who wants to explore how life settlements can fit into your client services, we’d love to talk. Whether you’re curious about a specific case or just looking to learn more, the team at SFS Life Settlements is here to help.
Let’s Start the Conversation
Reach out today to schedule a no-obligation consultation. You can also request our free Advisor’s Guide to Life Settlements for a deeper dive into how these transactions work—and how they can unlock new opportunities for your clients.