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The Life Settlement Transaction Process

Step 1:

Client completes and signs application with advisor. Also signs HIPAA Authorization Form and Authorization for Release of Policy Information to facilitate request for current in-force illustration from carrier. Client provides a copy of the policy.


Step 2: (Weeks 1 - 2)

Upon receipt of the three required forms, Chesapeake Financial Settlements, LLC (CFS) will order current medical records from attending physicians and/or hospitals along with in-force policy illustration.


Step 3: (Weeks 3 - 5)

Upon receiving medicals and illustrations, CFS will forward complete policy appraisal package to multiple providers. Providers and/or CFS will forward medical records to their respective vendors that calculate life expectancy reports (LE’s). Upon receiving life expectancy calculations, providers will underwrite the client’s policy to see if it meets its funding sources criteria.


Step 4: Weeks (6 - 7)

Providers begin to make offers for the policy. CFS manages the bidding process to obtain the highest offer. Upon acceptance of the highest offer by the client, CFS will request contracts from the provider.


Step 5: Week (8 – 9)

Advisor and client gather to complete closing documents. Completed documents are forwarded to CFS for review and shipment to provider.


Step 6: Week (10 – 12)

Provider reviews and approves closing documents. Provider ships documents to escrow agent. Escrow agent approves documents and then sends change of ownership and beneficiary documents to carrier. Upon receiving verification from carrier on change of ownership, funds are release to client from escrow with in 72 hours. Client has 15-day rescission period in most states.

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