Magna Life Settlements

time icon 5 min read update icon Sept. 20, 2019
25 Ratings - Write Review
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Magna Life Settlements assist in transforming life insurance policies into liquid financial assets. The company believes in consistently raising industry standards by providing exceptional service.

“Life settlement” is the common term used to describe selling a life insurance policy to a third party. In exchange for the life insurance policy, the insured will be given a cash settlement. In other words, a life insurance policy can be viewed as an asset which can be sold. Magna Life Settlements is a pioneer in the life settlements industry.The company has grown to become one of the leading life settlement providers out there. 

In the span of only four years, Magna Life Settlements purchased nearly $2 billion in life insurance policies. The company’s drive and perseverance continues to set it apart from its competitors.

Grandfolk Scoring
Cost 7/10
Ease 10/10
Customer support 8/10
Age qualification 10/10
Estimates 9/10
Established 6/10
Online tools 1/10
Direct buyer 10/10
Accreditation 1/10
Cancellation 7/10
Are there any fees involved?
Unclear; check with an agent to be sure
Is it easy to get started?
Yes, simply call or go online
Customer support
Ease of access
Agents are available 9 AM-5 PM CST Mon-Fri
Age qualification
What ages qualify for services?
Clients can qualify at any age, depending on the severity of impairment
Does the company offer estimates?
Clients can complete an online pre-qualification process
Is the company well established?
It has only been around for four years, but is growing
Online tools
Are there online tools available?
Direct buyer
Is the company a direct buyer of life settlement policies?
Yes, all services are handled in-house and not through a third party
Is the company accredited?
Magna does not have a profile with the Better Business Bureau
What if I change my mind?
All sales are final once paperwork is signed
Age Score:
50-64 Years
65-74 Years
75-84 Years

If you haven’t already noticed, healthcare costs are becoming more expensive than they have ever been. Unfortunately, Medicare only pays a fraction of the increasing healthcare costs in retirement. Life settlements can help empower you in your battle against financial burdens.The process consists of selling your policy to a third party. As the policy owner, you would normally receive a greater amount than if you were to cancel or surrender the policy, but less than the policy's proposed death benefit. 

When generating an offer on a policy, Magna Life Settlements considers more than 20 factors.The primary three factors include: face value, premiums due each year, and your life expectancy. Every situation is unique, which makes it difficult for the company to estimate the value of a policy without completing an application, medical questionnaire, and in-force illustration.Once all three application requirements are received, Magna Life Settlements evaluates your policy and determines a range of offers. The initial evaluation takes up to seven business days to complete.

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To qualify for a life settlement, applicants must be 65 years or older. In some instances, younger applicants may also qualify, dependant upon certain medical conditions. Magna Life Settlements offers viatical settlements, or settlements of policies for those who have been identified as terminally ill, with a 24-month or lower life expectancy. In a viatical settlement transaction, Magna Life Settlements will offer a cash in a lump-sum payment, equal to a fraction of the face value of the policy. 

Some states have implemented policies concerning minimum settlement amounts, which can, at times, be as much as 80% of the face value of the policy. Many seniors who become terminally ill may wish to sell their policies, due to a need to pay for medical or living expenses or to make memories.


  • Magna Life Settlements is a reputable and long-standing member of the Life Insurance Settlement Association (LISA).
  • The company focuses on quality and longevity and has grown to become one of the largest licensed life settlement providers in the industry.
  • Magna Life Settlements is consistently ranked as one of the top providers in the life settlement industry.
  • Clients and potential clients can sign up online to receive email newsletters from Magna Life Settlements. The newsletters include helpful financial tips and advice. 
  • Magna Life Settlements is licensed to operate in 48 states and Washington D.C. These areas represent 95% of the U.S. population.
  • The company’s stringent compliance and anti-fraud program is led by a team of attorneys and paralegals.
  • The company strives to perform its due diligence while servicing all settlement functions in-house. 
  • Magna Life Settlements was acquired by Vida Capital Inc. Vida Capital is an asset manager with nearly $3 billion in assets.


  • During the application process, your personal health information could be shared widely. Once a settlement has been accepted, providers can frequently monitor your health.
  • If you choose the settlement option, it may be impossible to acquire another life insurance policy. Even if you are able to obtain another policy, you may pay higher premiums since you've grown older and your health status may have changed.
  • The company has not been accredited by the Better Business Bureau. The Better Business Bureau assures that businesses meet accreditation standards, which includes ensuring a commitment to making reasonable efforts to resolve consumer complaints.
  • The initial evaluation of a submitted application usually takes five to seven business days. This turnaround time is substantially higher than those of other companies in the industry.

Bottom Line:

Too often, people misjudge their future expenses. Underestimating may cause the unfortunate depletion of savings when one reaches their senior years. As one of the leading providers in the life settlement industry, Magna Life Settlements is dedicated to assisting clients in transforming their life insurance policies into liquid financial assets. 

Vida Capital, Inc., an asset manager in the alternative investment industry, owns Magna Life Settlements. The partnership has permitted Magna Life Settlements to provide the best service to clients. All Magna Life Settlements team members are board members on the Life Insurance Settlement Association (LISA). Combined, its 18 employees have over a century of industry experience. 

Frequently Asked Questions:

What is the face value range that the company can purchase?

Magna Life Settlements can make offers to purchase life insurance policies with face values ranging from less than $100,000 to policies with values of more than $1 million. 

What type of life insurance policies does the company purchase?

Magna Life Settlements can purchase a wide range of policy types, including Whole Life, Term Life, Universal Life, Joint Survivorship, and Joint Survivorship with One Deceased.

What decision timeframe does the company provide?

Once an application has been submitted, Magna Life Settlements will evaluate the policy and determine a range of offers. The evaluation process can take up to seven business days to complete.

More Information:

Product Details

Overview: Magna Life Settlements is a leading company in the life settlement industry. The company has grown to specialize in life insurance and life settlements, with widespread knowledge of alternative investing. 

Package Details: N/A

Optional Accessories or Add-on Services, if any:  N/A

Additional Company Details

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Warranty: N/A

Accreditations: Magna Life Settlements does not have an accredited business profile with the Better Business Bureau. 

Company Details: Founded in 2004 and headquartered in Austin, Texas, Magna Life Settlements is now a multi-billion-dollar firm that manages alternative assets. In 2010, the company was acquired by Vida Capital, Inc. Vida Capital specializes in the servicing, financing, and management of life settlements, structured settlements, synthetic products, annuities and notes.


Magna Life Settlements
805 Las Cimas Pkwy, Building 3
Suite 350
Austin, TX 78746
Tel: 888-996-2475

T. Mashae Pearson - Senior Advisor

Shae is senior researcher with Grandfolk® providing in-depth product and service reviews to empower senior buying decisions.