The most useful thing a Richmond policy owner can do before signing anything is confirm whether the company on the phone is a licensed provider buying the policy or a broker shopping it on your behalf, and then verify that entity’s license with the Virginia Bureau of Insurance. Those two steps screen out most of what goes wrong in this market.
This page is not a directory and does not rank firms. Ranked lists in this industry are usually paid placement, and they tell you nothing about whether a company is licensed to do business in Virginia or how much of the offer you actually keep. What follows is the vetting process itself: the questions, the lookups, and the contract terms that matter.
It is written for owners in the Richmond area, meaning the City of Richmond plus Henrico, Chesterfield, and Hanover counties. One note up front: nearly every buyer in this market works remotely by mail and secure upload, so a local office is not a meaningful screen. Licensure is.
In This Article
- Provider or Broker: Know Who You Are Talking To
- Verify the License With Virginia Regulators
- Escrow and the Rescission Window
- The Questions That Separate Serious Buyers From the Rest
- Warning Signs Worth Walking Away From
- What a Realistic Offer Range Looks Like
- Why Richmond Owners Are Asking This Question in 2026
- Request a Free Policy Review
- Frequently Asked Questions
Provider or Broker: Know Who You Are Talking To
A provider is the licensed entity that actually purchases the policy. It puts up the money, takes over the premiums, and becomes the beneficiary. When you sell to a provider directly, the offer you hear is the offer, and there is no intermediary commission coming out of it.
A broker represents you, the policy owner. A broker’s job is to package the file and shop it to multiple providers to create competition, and the broker is paid a commission out of the proceeds. That commission must be disclosed. A good broker can raise the net figure by generating competing bids; a poorly disclosed one can quietly consume a large share of it.
Neither role is inherently better. What matters is that you know which one you are dealing with before you sign, and that you see the compensation in dollars, not percentages buried in a paragraph.
Verify the License With Virginia Regulators
Virginia regulates this market under Virginia Code Section 38.2-6000 et seq., the state’s viatical settlement provisions. Both providers and brokers must be licensed. The regulator is the Virginia Bureau of Insurance, which sits within the State Corporation Commission.
Ask the company for two things in writing: the exact legal name of the licensed entity and its Virginia license number. The legal name often differs from the marketing brand you saw in an ad, and that difference is exactly why the license lookup matters. Then check the name and number against the Bureau of Insurance license lookup yourself rather than relying on a screenshot they send you.
Escrow and the Rescission Window
Your money should never travel directly from the buyer’s hand to yours. In a properly run transaction, the purchase price is deposited with an independent escrow agent before the change-of-ownership paperwork goes to the carrier. The escrow agent releases funds only once the carrier confirms the transfer. That structure protects you from signing away a policy and then chasing payment.
Virginia also provides a statutory rescission window after funding, commonly around 15 days in states with this framework. Verify Virginia’s 2026 figure before you rely on it. Rescission means you can unwind the deal and return the money within that window. If a contract in front of you is silent on escrow or on rescission, that is a reason to stop and get advice, not a paperwork detail to fix later.
The Questions That Separate Serious Buyers From the Rest
Ask for the gross offer and the net to seller, both in dollars, on the same page. Then ask who is paid what out of the difference, by name and role. If nobody will put that in writing, you have your answer.
Ask how many providers actually saw the file and what each one bid. Ask whether two independent life expectancy reports were ordered, since underwriting in this market normally uses more than one and a single report is easier to lean on. Ask what happens to the medical records after closing, who retains them, and for how long. Finally, ask what happens if you change your mind at each stage of the process.
| What to check | Where to check it | What a good answer looks like |
|---|---|---|
| Licensed entity name and number | Virginia Bureau of Insurance license lookup | Exact legal name and number provided in writing, and it matches the lookup |
| Provider or broker role | Ask directly, get it in writing | Stated plainly, with the compensation structure that goes with the role |
| Gross offer vs net to seller | The offer letter | Both figures in dollars on the same page |
| Commissions and fees | Disclosure documents | Every party named, every dollar accounted for |
| Escrow | The settlement contract | Independent escrow agent holds funds until the carrier confirms transfer |
| Rescission right | The settlement contract and Virginia law | Written window after funding; verify Virginia’s 2026 figure |
| Life expectancy reports | Ask the buyer or broker | Two independent reports ordered from recognized underwriters |
| Medical record handling | Ask before signing the HIPAA authorization | Named custodian, stated retention period, limited access |
Warning Signs Worth Walking Away From
Pressure to sign the same day is the loudest one. Nothing in a life settlement is time-sensitive by hours, and legitimate transactions run 60 to 120 days from first contact to funding, so a same-day deadline is a sales tactic rather than a real constraint.
Other flags: a firm offer quoted before any medical underwriting, a request for an up-front fee to review your policy, refusal to name the licensed entity, no independent escrow, and vague answers about commissions. A free review should cost nothing and commit you to nothing.
What a Realistic Offer Range Looks Like
Nobody can quote you a number before underwriting, and any company that does is guessing or anchoring. What is known from market data is the general shape: settlements commonly land between 10% and 35% of the death benefit, and the GAO’s 2010 study (GAO-10-775) found sellers received roughly four to eight times what surrendering would have paid.
Value depends on life expectancy, policy type, and how expensive the policy is to keep in force. A guaranteed universal life contract with low premiums on an older insured tends to draw more interest than a policy with a heavy and rising cost of insurance. Ask your carrier in writing for the current cash surrender value and what a reduced paid-up election would leave in place, so you have real alternatives to measure any offer against.
Why Richmond Owners Are Asking This Question in 2026
The usual trigger is care costs. Skilled nursing in the Richmond market runs roughly $9,500 a month semi-private and $10,500 private as a 2026 ballpark, against a $2,000 countable-asset limit for a single applicant under Cardinal Care and the CCC Plus waiver. That arithmetic sends a lot of families through every asset in the house, and an old policy is often the last one they get to.
The higher-cost submarkets, including the West End, Midlothian, Glen Allen, and Short Pump, tend to produce these conversations first, simply because the policies there are larger and older. Wherever you are in the region, the vetting process is the same.
Request a Free Policy Review
Send the policy cover page for a free, no-obligation review of whether the secondary market is worth pursuing at all. That single page shows the carrier, policy number, face amount, and policy type. You will get a straight answer, including if the answer is that surrender or a reduced paid-up election serves you better.
Pine Lake Life Solutions reviews policies with $100,000 or more in death benefit and typically pays more than cash surrender value. Call (305) 209-7183.
This page is educational only and is not legal, tax, or investment advice. Statutes, license status, and rescission periods change; verify every item with the Virginia Bureau of Insurance and have a licensed Virginia attorney or CPA review any contract before you sign it.
Frequently Asked Questions
Do I need a life settlement company with an office in Richmond?
No. Virtually all buyers in this market work remotely by mail and secure document upload, so proximity is not a meaningful quality screen. What matters is whether the entity is licensed under Virginia Code Section 38.2-6000 et seq. and verifiable with the Virginia Bureau of Insurance.
What is the difference between a provider and a broker?
A provider is the licensed entity that actually buys the policy with its own funds. A broker represents you, shops the file to multiple providers, and is paid a commission out of the proceeds that must be disclosed. Ask which role the company plays before you sign anything.
How do I verify a company’s Virginia license?
Request the exact legal entity name and license number in writing, then check them yourself against the Virginia Bureau of Insurance license lookup at the State Corporation Commission. Marketing brand names often differ from the licensed entity name, which is precisely why the lookup matters.
What is escrow and why does it matter?
An independent escrow agent holds the purchase price until the carrier confirms the change of ownership, so you are never in the position of having transferred the policy without payment. A transaction with no independent escrow is a structural risk, not a paperwork shortcut.
Can I change my mind after the deal funds?
States with this statutory framework commonly provide a rescission window of about 15 days from funding, during which the seller can unwind the transaction and return the proceeds. Verify Virginia’s 2026 figure and confirm the exact window is written into your contract.
Should a company quote me a price before reviewing medical records?
A firm number before underwriting is not credible. Offers depend on life expectancy reports and the projected premium load, neither of which is known at first contact. A responsible company will give you a range and explain what would move it, not a hard figure on day one.
Should I ever pay a fee to have my policy reviewed?
No. A preliminary review of the policy cover page should be free and carry no obligation. Legitimate compensation in this market comes out of a completed transaction and is disclosed, not collected up front from the policy owner.
How many providers should see my file?
More competition generally produces better pricing, which is the main argument for using a broker. Ask specifically how many providers received the file and what each one bid, and ask for that in writing. A single bid presented as the market is not the market.
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Related Reading
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- Nursing Home Costs Richmond
- Education Center
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.