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Irvine, CA 92618

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Home Life Settlement

Life Settlement

  • What is a Life Settlement?

In 1911, the Supreme Court ruled in Grisby vs Russell that insurance policies are legally viewed as financial assets which may be sold to a third party, just as any other tangible investment can be sold at the owner’s discretion. Life Settlements are an important development in the financial services industry in that they have opened a large and growing secondary market for life insurance in which policy owners can access fair market value for their policies, rather than letting the policy lapse or accepting the lower cash surrender value from the issuing life insurance company. Many states now require insurance companies to advise their insured’s of this marketplace as an option to letting a policy lapse or cancelling for the current cash values.

  • Defining the Terms
    • A Life Settlement is a financial transaction in which a life insurance policy owner possessing an unneeded or unwanted life insurance policy sells the policy to a third party at a discount of the face value. Generally speaking, life settlements represent insured’s which are 65 years of age or older with life expectancies ranging between 3 and 15 years. These insured’s typically have age-related health concerns.
    • A Viatical Settlement is a financial transaction in which a terminally ill life insurance policy owner sells their policy to a third party at a discount of the face value. Viatical’s typically represent insured’s with a life expectancy of 2 years or less.
  • What Acclivity West Provides
    • We act as the listing agency for life settlements which are already on the secondary market.
    • We facilitate the acquisition of these policies according to the buyer’s specifications.
    • We enable retail buyers to participate in a market which is dominated by multi-billion dollar institutions.
    • Timely and efficient service.
    • Investor funds are maintained and controlled by an independent third-party escrow agent which is instructed by Acclivity West to pay investor funds to sellers of the applicable policies, commissions to the life agents, fees to the securities intermediary that holds record title to the life insurance policies and serves as custodian for IRA investors, servicing fees to an independent third party that monitors the status of each life insurance policy and the health status and whereabouts of each insured, premiums to the life insurance companies that issued the applicable life insurance the life insurance companies that issued the applicable life insurance
      policies and to Acclivity West to compensate it for its roles in these transactions.
    • Therefore, the funding of transactions are handled by Sunwest Trust, Inc., which means purchasers never write a check to Acclivity West.