Achieving our objectives (including price maximization) is a step-by-step process. We’ve been engaged in this business as a Broker since 2003, so we’ve had a lot of practice in avoiding pitfalls.

While each case varies amongst clients, their policies, and the winning Provider (buyer), here is what can be expected.

Policyholder and Insured complete our Application. This provides us with:
  • Basic information about the health and care of the Insured (the person on whose life the policy was written).
  • Information about the policy itself and its ownership.
  • A HIPAA form signed by the Insured authorizing us to obtain his medical records.
  • An authorization to allow us to obtain policy information from the carrier.
  • A Broker-of-record letter, signed by the Policyholder, appointing us as his exclusive representative in the possible sale of the policy.
We obtain medical and policy information. Specifically,
  • The Insured’s medical records for the past five years from his physicians. No physical exam is ever required.
  • An actuarial report on the Insured’s health based upon the medical records.
  • Illustrations and other policy information needed by possible buyers to evaluate the policy and to project future costs.
Creation of an auction.

We transmit the information to multiple Providers with the intent of soliciting their interest in making an initial bid. We engage with each bidding party to push for continually higher bids (in relation to their competitors’ bids) until the highest and final bid is made by the Provider still standing.


We’re constantly keeping our clients (the Policyholder and his agent and/or advisor) informed as to our progress. When we reach a final bid for the policy, we’ll advise them, seeking approval to move forward with the transaction. Unavoidably, sometimes the answer is no, but that is the risk we’ve undertaken.

The closing.

Once the Policyholder approves of the net price to be paid to him, as his Broker we will sign an acceptance of the written offer from the winning Provider.

  • Legal documents. Within days, the Provider will have prepared the legal documents for the closing. In regulated states, the legal documents have already been vetted and approved by that state’s insurance department. While each Provider has its own set of closing documents (that vary somewhat according to states’ requirements), in substance, all closing documents are similar. They include a contract of sale, an escrow agreement, and multiple ancillary exhibits and other forms.
  • Review and execution. As Broker, we review the closing documents and mark them for signing by the Policyholder, the Insured, and others as needed. We methodically guide the parties through the signing process. 
  • Funding of escrow; changes made at the carrier. Once we confirm that the Provider has funded escrow, “change forms” are sent to the carrier, the life insurance company that issued the policy. Changes of ownership and beneficiary of the policy generally are made by the carrier within one to two weeks.
  • Policyholder is paid. Once notice from the carrier has been received, confirming that the ownership and beneficiary changes have been made, the Policyholder is paid by the escrow agent. We, as Broker, are also paid out of escrow, but only after the Rescission Period, if any, has lapsed.
Designated contacts.

In each transaction, the Insured is required to designate certain individuals of his choosing with whom the new policy owner (Investment Fund) may be in periodic contact to assess the status of the Insured. While the Investment Fund may at most have the right to contact such an individual each quarter, it’s been our experience that contacts are made more infrequently and are not at all burdensome to the parties.