Selling to a Provider or Using a Broker
You will need to decide whether to sell your policy directly to a viatical and life settlement provider or whether to use a viatical settlement broker who will do comparison shopping for you (you should not have to pay a fee for this). If you don’t use a broker, be sure to comparison shop on your own; talk to at least three viatical & life settlement providers to make sure you are getting a fair deal.
- Check all application forms for accuracy, especially information about your medical history.
- To ensure your funds are safe during the transfer, make sure the viatical & life settlement provider agrees to put your settlement proceeds in escrow with an independent party or financial institution. The escrow account used must be with a state or federally chartered financial institution and be insured by the Federal Deposit Insurance Corporation.
- Understand whether buyers may learn your identity when they buy your policy and whether they will know certain medical and personal information about you, such as your address and life expectancy.
Assistance with Selling or Buying
If you are interested in selling your life insurance policy, contact the Maine Bureau of Insurance for more information at 800-300-5000 (in Maine) or 207-624-8475.
If you plan to buy another person’s life insurance policy as an investment, or if someone asks you to invest in or buy a life settlement, contact the Securities Division of Maine’s Department of Professional & Financial Regulation for assistance at 207-624-8551.
Additionally, if someone wants you to buy a policy and then sell it immediately, contact the Maine Bureau of Insurance; this activity may be fraudulent.