How it Works

How it Works

How A Life Settlement Works

A life settlement is simply the sale of an existing life insurance policy to a third party institutional investor or life settlement provider. Large institutional investors are interested in buying insurance policies from people who no longer need them. They do this to help diversify their investment portfolios. Life settlement brokers act as the policy owner’s selling agent, helping policy owners and financial professionals secure the best offer while giving investors a centralized source for obtaining insurance policies. Life settlement brokers, such as IMS Associates, help policy owners and their advisors reduce the settlement process to three simple steps: sell the life insurance policy, collect cash, and use the cash for current financial needs.


The life settlement market provides a rare scenario in which all participants win:

  • The seller can stop paying premiums and collects a larger settlement than the cash value for his unwanted policy.
  • The buyer gets a valuable contract with a life insurance company.
  • The insurance company gets to keep its policy in force and continue collecting premiums until maturity.

Life Settlement Transaction Process