Life Settlement Solutions LLC is structured to acquire eligible life insurance policies meeting certain criteria. Life Settlement Solutions administers, manages and services the policies. The typical institutional investor appoints a trustee to serve as custodian and disbursement agent.
Once Life Settlement Solutions locates an eligible life insurance policy and confirms initial eligibility requirements are met, the insured's medical records are sent to one or more medical evaluators for a life expectancy rating. If a pricing proposed to purchase the policy is to be extended to the owner, the results of these evaluations, along with the information derived from a policy illustration generated by the insurance company that issued the policy, serve as the basis for determining the bid price that will meet investment criteria as established by the capital funding sources. If the policy owner accepts the bid and sells his/her ownership interest in the policy, the policy owner relinquishes ownership and beneficial interest in the policy in exchange for a cash payment. Upon the insured individual's death, the investor, as designated owner and beneficiary (typically via a trustee or Special Purpose Vehicle), receives the death benefit of the policy. The capital invested in life settlements earns a "yield" in exchange for assuming the cost to maintain insurance coverage and the timing risks associated with future realization of benefits.
