Life Insurance for Lump Sum Settlements

life insurance for pension and VA disability settlementsIf you’re looking to secure life insurance required for a lump sum benefit, you’re in the right spot.

We have relationships with several lump sum settlement brokers to help secure their clients life insurance.   We’ll explain everything you need to know in this article.

Most people looking to sell a portion of their pension stream, VA disability payments, annuity payments, lottery payments or any guaranteed income stream HAVE to secure life insurance.  Not only is this a requirement, the life insurance has to be “assignable” and most life insurance carriers won’t assign this coverage.

Most Carriers Decline Life Insurance for Lump Sum Settlements

The most important piece of advice we can give you is to use a life insurance agent or agency who works with these lump sum settlements regularly.  The main reason is that most life insurance carriers refuse this business, so make sure you’re applying with a company that takes this business.

We’ve spoken with dozens of people who have tried to secure life insurance for a lump sum settlement, only to have the collateral assignment form been denied or been outright declined for coverage just because of the reason you’re buying this insurance.  Don’t let this happen to you!

We’ve taken the time to call over 50 life insurance companies and only 9 of them welcomed this business.  Many “big name” life insurance companies like Genworth, American General and Transamerica will decline you based on the reason for this coverage.

We know the carriers that welcome this business and will provide you with the best rates based on your situation.  We also know that you need this coverage quickly and will do everything in our power to get this coverage in force FAST.

In fact, there’s 1 carrier that will will give you an immediate decision and lets you apply online without the assistance of an agent.  You can get quotes and apply online here – you’ll receive a decision in minutes (only apply if you’re healthy).  They’re 1 of our carriers that are lump sum settlement friendly.

Securing Life Insurance for Lump Sum Settlements That Are High Risk

If you have some health issues, please give us a call.  Getting your lump sum payment is dependent on obtaining affordable life insurance coverage.  We’re high risk life insurance experts and will recommend the company that will provide the best rates based on your health situation.

Handling The Collateral Assignment

After your policy goes in force, you need to complete a collateral assignment to the investor(s) providing you the lump sum payment.   This form is very basic and just involves your signatures and possibly a notary requirement.

Most life insurance carriers have 1 collateral assignment form that’s used for every collateral assignment transaction.  However, there are some life insurance companies that have collateral assignment forms unique to lump sum settlements.  We have all of those forms.

For example, one company added this verbiage to their collateral assignment and won’t accept any other assignment form:

lump sum settlement life insurance collateral assignment

Life insurance agents who haven’t worked these lump sum benefits wouldn’t know about these different collateral assignment forms.  This will delay the process of obtaining your lump sum.

Obtaining these forms comes from experience in working these cases.  We can handle the collateral assignment paperwork for you.

If you’re trying to qualify for a lump sum settlement, give us a call.  We work with people daily who are selling their income streams and need to take care of this life insurance quickly.

Whether you’re selling you pension income stream, annuity, VA disability or other guaranteed income stream – we’re your agency.

Please don’t hesitate to contact us with any questions.

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About Jeff Root

is the owner of He's an independent life insurance agent who has helped 1,000's of consumers purchase life insurance online and over the phone.

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