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Updated: March 2, 2023
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Simplified Settlements, which is part of Coventry Direct, streamlines the underwriting process. Life settlements typically close within 30 days of when you submit all information.
Those who own policies worth $100,000 to $500,000 can use Simplified Settlements. You can submit information about your life insurance on Coventry’s website to begin the process of selling your policy.
Editorial Breakdown
Ease of Use
Customer Service
Qualifications
Costs
Overall Rating
Bottom Line
Coventry makes selling a life insurance policy for cash easy by prioritizing customer education, consumer rights, and fast, streamlined closing processes.
Coventry conducted the first life settlement transaction, and in the 40 years since then, has taken the lead in supporting the highest standards of conduct across the industry. The company and its affiliates bought more than three times as many life insurance policies as its closest competitor in 2021. The company fosters a collaborative environment, and its team members prioritize customer education.
After talking with a policy specialist on the website’s chat feature, we learned that it’s easy to figure out if you can sell your life settlement policy to Coventry.
Simply fill out a form with basic information, such as the amount, type, age of the policy (a range is fine), and the insurance company’s name. It can take about two weeks to get an offer after you submit your request, and if you accept the offer, you’ll get your money in 30 to 45 days.
In general, you’ll follow this process to sell your policy with Coventry:
Complete the questionnaire on the website.
Coventry will value the policy to determine if they can make an offer.
Coventry will relay the offer to the advisor.
Once you accept the offer, Coventry will issue closing documents.
After receiving the executed closing documents, Coventry will send the change of ownership and beneficiary forms to the life insurance company.
The carrier will confirm they’ve processed the change forms and will release the funds to you.
Coventry offers retained death benefits options and simplified settlements to customers facing financial hardship. With retained death benefits, you can keep a portion of your life insurance with no future premiums. Coventry’s simplified settlement process can help you turn smaller, unneeded policies between $100,000 and $500,000 into cash.
Retained Death Benefit Option
– Choose to keep a portion of the death benefit instead of a cash payment. – Receive a cash settlement and retain a portion of the death benefit. – Redesign death benefit if the need for insurance decreases over time.
Simplified Settlements
– Streamlined underwriting process in less than 30 days. – Helpful for realizing the value of smaller policies.
Coventry Additional Benefits
Who Qualifies for a Life Settlement?
To sell a life insurance policy, you’ll need to meet minimum qualifying factors. Most companies who buy policies look for those 65 or older with a death benefit of $100,000 or more. Those with a life expectancy of up to 20 years have better approval odds.
Significant health impairments or a decline in health from the time your policy was issued might improve your chances, but the ability to sell your policy will depend on the provider or broker.
A life settlement is the sale of a life insurance policy by the policy owner to a third party. The seller typically gets more than the policy’s cash value but less than the death benefit amount. The third party will pay the policy’s premiums and collect the death benefit when the insured dies. Most states require you to hold your life insurance policy for two to five years before selling it.
Who can use a life settlement company?
If you have a term or universal life insurance policy, you can use a life settlement company—but age, policy, and health qualifiers apply. Coventry will purchase life insurance policies valued at $100,000 or more from individuals aged 65 or older.
Is Coventry legitimate?
Financial publication The Deal consistently ranks Coventry No. 1 for life settlements by number and value. A leader in the market for life insurance, Coventry hires knowledgeable financial representatives and customer specialists to help speed up and simplify the transaction process. The company has delivered more than $5 billion to policyholders who no longer need their life insurance.
How does Coventry work?
Coventry purchases active life insurance policies from seniors. Upon purchase, Coventry becomes the beneficiary and pays the premiums. Then, Coventry will sell the policies to investors or maintain them to collect the death benefits later. Coventry Direct builds education into their processes, evaluating policies for free and with no commitment, as many people do not understand that you can sell your unneeded insurance policies rather than surrendering them or letting them lapse.
What policies can I sell with Coventry?
You can sell universal life, whole life, variable life, survivorship, group life and even term life policies with Coventry.
Conclusion
Coventry is the industry’s biggest life settlement provider. Its size, sound reputation, and numerous industry accolades make it a top choice for consumers who want to sell their policies quickly and effectively.
Although our family did not proceed with a life settlement the process helped us uncover a lot of important information we would not have known otherwise. Given that it is a free, non-binding appraisal, I would encourage any family to check it out. Travis was and is a very personable and thoughtful gentleman. We appreciate him!!!
Brian G.
Detroit, MI
July 30 2024 10:02PM
After my husband having a policy for 35+ years, we finally just had to let it lapse. Coventry indicated he did not qualify. You literally have to be "near death." Thank Heaven, he's still alive, but in my opinion, this company has false advertising.
Sylvia L.
Berlin, MD
March 21 2024 7:16PM
I was leery about the concept of a life insurance policy buy-out, but Coventry Direct assuaged my concerns and worked with me to build an equitable resolution. They put cash in my hand while allowing my beneficiary to retain a healthy pay-out for the next 10 years. Travis **, Regional Vice President, directed the process with the utmost of professional and his communication and follow through was exemplary. The final solution was fair for both parties and I am very pleased that I chose Coventry Direct to manage my life insurance buy-out plan. Highly recommend this company!
Pamela M.
Prescott Valley, AZ
February 01 2024 9:19PM
More than disappointed with this company . They basically want you on your way to the morgue prior to making a decision and offer. Wasted 8 months on this company. They keep asking the same questions over and over which I answered ad nauseam then tell you a couple more weeks. This went on for 8 months of which two weeks I was in a coma.
WESLEY W.
New Waverly, TX
February 09 2023 3:55AM
Their ad basically says, "Want to go on vaction? Go places you have always wanted to see? Just sell your Life Insurance and go have fun." I found out that is a total LIE. They said I did not qualify because I was in too good of health. What they mean is, I am healthy enough that I won't die in a month.
They don't want to pay for my insurance if I will live more than a couple of months. If that is the case, I sure can't go on vacations around the world. It turns out that they want to pay you very little. Then they have to pay for your insurance until I die. THAT is why you need to be almost dead because they don't want to pay your monthly Ins Premiums.
Then after you die, they get the FULL value of your life ins after paying you very little and only a few months of premiums. DO NOT be fooled. This is just a SCAM.
AND if you do go through the process, you have to Authorize the Release of ALL ALL ALL medical records, Pharmacy, health, Hospital, bank, credit bureau so they can check out if you are healthy enough to live more than a few months. So do not forget to REVOKE all of that authorization if you do not get it. Rejected in May 2022.
Jim M.
Columbus, OH
November 23 2022 4:56PM
I am approaching my 81st birthday and the cash value of my policy is diminishing rapidly. Before it disappears completely at about age 85 I decided to investigate whether I could retain some cash by selling my policy now.
To keep a long story short, I was, I did and I am pleased with the result. I was, and am of two minds because I have trouble believing I will continue to be alive by 85. My local Financial Advisor helped me make the decision to take Coventry's offer.
The gentleman who worked with me from Coventry, Steven **, was patient with me and explained how Coventry's analysis worked. He did an excellent job from start until finish.
As I said before, I am quite please with the result for me; you will have to evaluate the process and the result for yourself. I hope you have as good a helper as Steve was for me.
