Encore Life Settlements Review
If you have a universal, whole or convertible term life insurance policy valued at $100,000 or more, Encore Life can buy it from you. For many, selling a life insurance policy to a reputable life settlement company is better than terminating it or letting it lapse because selling a policy means receiving compensation for the premiums you have paid over the years. Encore Life assigns a customer advocate to each interested seller. This advocate learns about your situation and can help you determine if selling is your best option.
Pros
- Connects you directly with serious buyers
- Does not charge commissions or broker fees
- Free value estimate
- Fast funding
Cons
- Limited website information
- No online chat feature, must submit a form and call for more information
How to Sell Your Policy With Encore Life Settlements
To sell your life insurance policy to a third-party provider like Encore Life, you’ll need to follow a specific process. Once the sale is finalized, you (the policyowner) receive an immediate payment in return.
Encore Life partners with top investors who lend their industry expertise to help complete all sales. You’ll match with one of these experts, who will guide you through the sale process and ensure that everything happens quickly and affordably.
- Determine how much your policy is worth based on its amount, your health status, and the premiums you pay.
- Verify policy details with the insurance company and health information with your doctors.
- Receive an offer for your policy, including the price and terms and conditions, depending on state regulations.
- Close on your life insurance policy sale (e.g., sign and review documents).
- Receive payment via wire transfer or overnight check.
To begin this process, you’ll fill out a quick form with your contact information, insurance details, and policy details. Then, a representative will contact you.
Who Qualifies for a Life Settlement?
You may decide to sell your life insurance policy if you no longer have a need for it or have high medical costs that make it tough to afford the premium payments. While qualification factors differ, most companies who buy policies look for specific things. Encore Life states that these factors can increase your cash offer:
- You’re over 70 years old
- You have a universal, whole or convertible term life insurance policy
- You have a policy worth more than $100,000
- Your health has changed substantially since you purchased the policy
Encore Life Settlement Costs
As a life settlement provider, Encore Life can eliminate the brokerage or commission fees from your sale. Skirting these fees (often 10% to 20% of the sale) maximizes your payout. Encore Life partners with several investors to provide the most competitive offers.
The offer for your life insurance policy will depend on the type of policy, coverage amount, your age, and your health. Older, less healthy individuals with more valuable policies tend to get bigger payouts. Encore Life doesn’t advertise specific pricing, but settlement companies typically pay about 10% to 25% of the policy benefit amount.
Keep in mind that life settlements aren’t always tax-free. You’ll have to pay taxes on your settlement if the cash value is greater than the premiums paid over time.
Encore Life Settlement Complaints
Information about Encore Life is limited online. They are not accredited by the Better Business Bureau, and they don’t have a profile on Trustpilot. The Encore Life website provides a few examples of payouts customers received when selling their policy. They profile senior men and women who were paid thousands after selling unaffordable policies.
Encore Life Settlement FAQs
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What is a life settlement?
A life settlement is the sale of a life insurance policy to a third-party life settlement provider. The policyowner sells it to the provider for immediate payment. After the sale, the life settlement provider takes ownership of the policy, pays the premiums, and receives the death benefit when the person whose life is insured dies.
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Is Encore Life legitimate?
Established in 2022, Encore Life is equipped to handle many types of policies for a diverse customer base.
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How much do you get for selling a life insurance policy?
Your payout amount will depend on the type of policy, coverage amount, your age, and your health. Each provider is different, but most providers pay between 10% to 25% of the policy benefit amount. You’ll maximize your payout if you work with a company like Encore Life that does not charge commissions or fees.
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Should you sell or terminate your life insurance policy?
Selling your policy is often better than surrendering it because the cash payouts are higher when you sell it to another broker or investor. Encore Life can sell your policy to several brokers, which enables them to get the most competitive offer.
Surrendering or liquidating your policy is a viable option if you need fast cash. Plus, it eliminates the requirement to pay monthly premiums. But if you terminate your policy, you get nothing in return for the years spent paying premiums.
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What policies can you sell to Encore Life?
Encore life will buy universal, whole or convertible term life insurance policies.
Conclusion
Encore Life Settlements buys universal, whole or convertible term life insurance policies worth $100,000 or more from people over age 70. Those who are nervous about selling their policy will appreciate Encore Life’s commitment to customer service and education throughout the sale. Although information about the company is lacking online, it is clear that Encore Life can help policyholders get more money from their settlement because it does not charge brokerage fees.