Eight items decide whether a life settlement review goes anywhere: the policy cover page, an in-force illustration at current and guaranteed assumptions, a minimum-premium illustration, the net cash surrender value after any loan, a list of every treating physician for the last five years, the policy issue date checked against your state waiting period, confirmation of who legally owns the policy, and a look at any riders you already own. Gather them and almost everything else becomes straightforward.
Most delays in this process are document delays, not decision delays. Carriers commonly take a couple of weeks to produce illustrations, and medical record retrieval can take longer. Starting the requests now shortens the whole timeline, which typically runs about 60 to 120 days from application to funding.
This page is educational only and is not legal, tax, or investment advice. Pine Lake Life Solutions works with policies of $100,000 or more in death benefit and typically pays more than cash surrender value. To begin, you only need item one – send the policy cover page for a free review or call (305) 209-7183.
In This Article
- 1. Find the Policy Cover Page
- 2. Request an In-Force Illustration (Current and Guaranteed)
- 3. Also Request a Minimum-Premium Illustration
- 4. Get the Net Cash Surrender Value After Any Loan
- 5. Write Down Every Treating Physician From the Last Five Years
- 6. Check the Issue Date Against Your State’s Waiting Period
- 7. Confirm Who Legally Owns the Policy
- 8. Check the Riders You Already Own – and Your Beneficiaries’ Situation
- Frequently Asked Questions
1. Find the Policy Cover Page
This is the only document needed to find out whether a policy is even a candidate. The cover page – sometimes called the policy specifications or schedule page – is the first page of the contract and shows the insurer’s name, the policy number, the face amount, the issue date, the policy type, and the named insured.
Where to look if you cannot find the contract: the annual statement, the most recent premium notice, a folder of estate documents, a safe deposit box, or the agent who sold it. If the original insurer’s name no longer exists, it may have been acquired or reorganized – carriers merge and demutualize, and old policies are frequently serviced today under unfamiliar names.
If the policy cannot be located at all, do not assume it is gone; there are specific ways to trace old coverage. Start with the carrier’s policyholder service line and your state insurance department, and see how to find out if an old policy still exists.
2. Request an In-Force Illustration (Current and Guaranteed)
An in-force illustration is a carrier-produced projection of how the policy behaves going forward: premiums required, account or cash values, and death benefit over time. It is the single most important document in the analysis, and buyers cannot price a policy without it.
Ask for two versions. The current assumptions version projects using today’s crediting rates and current cost-of-insurance charges. The guaranteed assumptions version projects using the worst outcomes the contract allows. The gap between them is where unpleasant surprises live, particularly on universal life, where a policy that looks stable at current assumptions can require far more premium under guarantees.
Call the carrier’s policyholder service line and ask for "an in-force ledger at current and guaranteed assumptions." Expect roughly one to three weeks. Ask them to email it if possible.
3. Also Request a Minimum-Premium Illustration
This is the item most people never ask for, and it can materially affect an offer. A minimum-premium illustration shows the smallest premium stream that keeps the policy in force to a stated age – for example, to age 95 or to maturity.
It matters because a buyer prices the premiums it expects to pay. If the only illustration in the file is a level-premium or target-premium version, the buyer’s modeled carrying cost may be higher than the policy actually requires, which lowers the offer. Hypothetical: an owner paying $9,000 a year learns that the policy can be carried to age 95 for about $5,400 a year because existing account value absorbs part of the cost. Over a 12-year horizon that is roughly $43,000 less in the model.
When you call the carrier, ask specifically: "What is the minimum premium required to carry this policy to age 95, and can you send an illustration showing it?" Get it at both current and guaranteed assumptions if the carrier will produce both.
4. Get the Net Cash Surrender Value After Any Loan
This number is your floor. It is what the insurer would pay you today for cancelling the policy, and no sale makes sense unless net proceeds exceed it.
Two traps. First, the gross cash value and the net cash surrender value are different – surrender charges may apply, particularly on newer policies, and an outstanding loan plus accrued interest is deducted. Ask specifically for the net cash surrender value after loan payoff. Second, an existing loan comes off the top of a settlement too, so know the exact payoff figure before comparing anything.
Also ask whether an automatic premium loan has been running. Many whole life contracts quietly borrow from cash value to pay premiums when payments stop, which can erode value for years unnoticed. See what a policy loan is and what cash surrender value means, then compare with settlement vs. surrender.
| # | Item | Where to Get It | Typical Time |
|---|---|---|---|
| 1 | Policy cover page | Policy contract, annual statement, or carrier service line | Same day |
| 2 | In-force illustration, current and guaranteed | Carrier policyholder service | About 1-3 weeks |
| 3 | Minimum-premium illustration | Carrier policyholder service (ask specifically) | About 1-3 weeks |
| 4 | Net cash surrender value after loan payoff | Carrier, by phone or in writing | Same day to a few days |
| 5 | List of treating physicians, last 5 years | Your own records and pharmacy history | An afternoon |
| 6 | Issue date vs. state waiting period | Cover page plus state insurance department | Same day |
| 7 | Confirmation of legal owner | Carrier records; trust or business documents | Days to weeks |
| 8 | Riders already owned | Policy contract and carrier | Same day to a few days |
5. Write Down Every Treating Physician From the Last Five Years
Life expectancy underwriting drives pricing, and it is built from medical records. Gaps in those records get filled with conservative assumptions, which generally means a longer projected life expectancy and a lower offer.
Make a simple list: each physician’s name, specialty, practice name, city, and approximate dates of care, going back about five years. Include the primary care physician, every specialist, any hospital or surgical center, and any facility where the insured has received care. Note major diagnoses, surgeries, and hospitalizations with rough dates, plus a current medication list.
You will also be asked to sign a HIPAA authorization so records can be requested. Read it before signing: ask which parties will receive records, how long they are retained, whether records are shared with buyers who decline the file, and how to revoke the authorization. A specific, revocable authorization is a reasonable thing to insist on.
6. Check the Issue Date Against Your State’s Waiting Period
Look at the issue date on the cover page. Many states require a policy to be in force for a period before it can be sold – commonly two years, with defined exceptions such as terminal illness, divorce, or retirement, and some states use a longer default. The rules vary by state and change, so confirm the current requirement with your state insurance department or an attorney as of 2026.
These rules exist largely to discourage stranger-originated life insurance, in which coverage is taken out on someone with the intent of selling it to investors. That practice is prohibited or restricted in most states. If anyone ever offers to pay premiums on a new policy for you so it can be sold later, stop and report it.
If your policy is inside the waiting period, note the eligibility date on a calendar and keep the policy in force until then. Nothing can be sold after a lapse.
7. Confirm Who Legally Owns the Policy
The owner – not the insured, and not the beneficiary – is the only party who can sell a policy. These roles are often the same person, but not always, and assuming can waste months.
Check the cover page or ask the carrier who is recorded as owner. Common complications: a policy owned by an irrevocable life insurance trust, where the trustee acts and the trust document controls what is permitted; a policy owned by a business or partnership; a policy owned by an ex-spouse under a divorce decree; a policy assigned as collateral to a lender, which requires a release before transfer; and a situation where the owner has diminished capacity and an agent under a durable power of attorney must act – many powers of attorney do not expressly grant authority over life insurance, so have an attorney read it.
Sort this out before anything else moves. Also note the current beneficiary designation, since it will change at closing.
8. Check the Riders You Already Own – and Your Beneficiaries’ Situation
Before selling anything, look at what the policy already gives you. An accelerated death benefit rider may let a terminally or chronically ill insured draw a portion of the death benefit early with a physician’s certification, typically in weeks and without any ownership transfer. A long-term care or chronic illness rider may pay toward care costs directly. A waiver of premium rider may cover premiums during disability. A convertible term policy may have a conversion deadline worth knowing before it passes.
Then ask the human question the documents cannot: does anyone still depend on this death benefit? A surviving spouse facing an income drop, an adult child with a disability, a buy-sell agreement, or an estate tax liability are all reasons to keep the policy rather than sell it. Read when a life settlement is a bad idea before you go further.
If a Medicaid application is in your future, involve an elder law attorney early – proceeds can affect eligibility, and the look-back rules make after-the-fact fixes hard. When you are ready, send the policy cover page for a free review or call (305) 209-7183.
Frequently Asked Questions
What do I actually need to send to get a free policy review?
Just the policy cover page – the first page showing the insurer, policy number, face amount, issue date, and policy type. That is enough to tell whether the policy is a realistic candidate. Everything else on this checklist comes later, only if it makes sense to proceed.
What is an in-force illustration and why do I need two versions?
It is a carrier projection of premiums, values, and death benefit going forward. The current-assumptions version uses today’s rates and charges; the guaranteed version uses the worst the contract allows. The gap between them shows how much risk the policy carries, which matters on universal life especially.
Why should I ask for a minimum-premium illustration?
Because buyers price the premiums they expect to pay, and a level-premium illustration can overstate what the policy actually requires. The minimum-premium version shows the smallest stream that carries the policy to a stated age. Accurate carrying cost can meaningfully improve an offer.
How do I get the net cash surrender value?
Call the carrier and ask specifically for the net cash surrender value after any loan payoff and surrender charges, not the gross cash value. Also ask whether an automatic premium loan has been running, since that quietly reduces both the cash value and the death benefit.
Why do they need five years of physicians?
Because life expectancy underwriting is built from medical records, and missing records get replaced with conservative assumptions that lengthen projected life expectancy and lower offers. A complete list of physicians, facilities, diagnoses, and medications produces a more accurate picture.
What if my policy is owned by a trust?
Then the trustee, not the insured, is generally the party who can act, and the trust document governs what is permitted. Start with the attorney who drafted the trust. The same care applies to business-owned policies, policies pledged as collateral, and policies subject to a divorce decree.
How long has my policy needed to be in force before it can be sold?
Many states impose a waiting period, commonly two years with defined exceptions, and some use a longer default. Requirements vary by state and change over time, so verify with your state insurance department or an attorney. Check the issue date on your cover page against that rule.
Should I check my riders before selling?
Yes, always. An accelerated death benefit rider, a chronic illness or long-term care rider, or a waiver of premium rider you already own may solve the problem faster and more simply than a sale, with no ownership transfer. Read the contract or ask the carrier what riders are attached.
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Related Reading
- What Is Cash Surrender Value
- What Is A Policy Loan
- What Is An Accelerated Death Benefit Rider
- Life Settlement Vs Surrender
- When A Life Settlement Is A Bad Idea
- How To Find Out If A Policy Still Exists
Pine Lake Life Solutions does not purchase life insurance policies and does not provide legal, tax, or investment advice. Information provided is for educational purposes only. Eligibility for any option, including life settlements, is not guaranteed and depends on individual circumstances, policy terms, underwriting, and market conditions. Consult independent legal, tax, or financial professionals before making decisions regarding a life insurance policy.