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I. Insured Comes to Mutual Benefits Corp.
| A. |
Through
a qualified policy broker, MBC reviews life
insurance policies to determine which policies
adhere to company standards. Policyseller and
insured are informed of these standards.
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| B. |
Insured
signs a release of medical records - this allows
MBC access to the insured's medical records.
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| C. |
MBC
obtains the insured's medical records, laboratory
reports and hospital records and has them reviewed
by a state-licensed physician and/or medical
review company.
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II.
Diagnosis
| A. |
For
a viatical: The insured must be terminally ill
and usually has a life expectancy of thirty-six
months or less; for a life settlement, the insured
is usually a senior citizen with health complications
and an estimated life expectancy of seventy-two
months or less.
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| B. |
The
insured's attending physician must verify and
validate that the insured is of sound mind.
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| C. |
A
state-licensed physician and/or medical review
company reviews those medical records to evaluate
the condition of the insured and provide an
estimated life expectancy. This state-licensed
reviewing physician then confirms to MBC the
insured's diagnosis and estimated life expectancy.
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III.
Verify Insurance Policy
| A. |
Insured
signs waiver to acquire policy information
directly from the insurance company.
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| B. |
Insurance
company must be rated B+ or higher
by A.M. Best.
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| C. |
Policy
must be past the Contestability Period.
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|
 |
| D. |
Policy
must be past the applicable Suicide Period.
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| E. |
Policy
must allow for Absolute Assignment of Ownership
and/or Irrevocable right to beneficiaries.
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IV.
Investor/Purchaser
| A. |
Completes
Purchase Agreement including dollar amount.
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| B. |
If
Qualified Retirement Plan - fill out custodial
forms.
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| C. |
Return
Paperwork with check in return envelope.
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| D. |
Funds
are deposited with an escrow agent and those
funds earn interest until the closing of the
policy.
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V.
Closing
| A. |
Contact
current beneficiaries, get signed consent waiving
or releasing beneficiaries' rights.
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| B. |
Policyseller
transfers insurance policy to the new owner
(where applicable).
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| C. |
Purchaser
or designee is recorded as a beneficiary by
using a standard change of beneficiary form
provided by the insurance company.
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| D. |
Check
is paid to the policyseller by the Escrow Agent.
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| E. |
When
applicable, funds sufficient to make premium
payments for the estimated life expectancy will
be paid or escrowed at the time of closing.
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| F. |
Purchaser
receives a copy of the transfer of ownership
form, reassignment of beneficiary form, and
a report from a state-licensed reviewing physician
regarding estimated life expectancy.
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VI.
Maturity
| A. |
When
the policy matures, the death benefit is paid
by the insurance company to the designated beneficiaries.
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