Life Settlement Funding Provides
Unexpected and Substantial
Financial Gain For Many
Senior Life Insurance Owners
Life Settlement Funding
Frequently Asked Questions
Q. Why would anyone sell their life insurance policy?
A. Here are just a few of the many reasons why someone would sell:
Premiums have become too expensive or unaffordable
A term period or conversion privilege to about to expire
Financial hardships
Closure/sale of business, or retirement and life coverage is no longer needed
Change in estate value
Long-term care needs
Death of spouse or divorce
Underperforming policy
Coverage needs have changed
Q. What types of life insurance policies can be sold?
A. Generally, all types of policies can be sold including a term policy. Although there is no cash value, these policies often have significant cash value as an asset in a life settlement transaction.
Q. How much money does a policy seller receive?
A. As a general guideline, a seller can expect to receive an amount equal to 20% of the life insurance policy face amount. Funders will typically pay an average of three to five times more than the existing cash surrender value.
Q. Is there any cost to apply?
A. No. There are no application costs.
Can I change my mind at any time?
A. Yes. If you decide to change your mind about selling your life insurance policy, you can cancel the life settlement contract at any time during the rescission period which can be 3, 15, or 30 days, but it depends on the time period defined by your state.
Q. Are the proceeds taxable?
A. On May 1, 2009, the IRS issued two revenue rulings to clarify the income tax treatment regarding the surrender, sale, and purchase of life insurance policies. Revenue ruling 2009-13 provides guidance to policyholders who surrender or sell their life insurance policies. For more information, visit the IRS website. Also, we recommend that you consult with a tax advisor for more information.
Q. Is a medical exam required?
A. No medical exam is necessary. Personal medical records are obtained once your authorization is given.
Q. Are policies owned by someone other than the insured eligible?
A. Yes. Policies owned by a trust, corporation, non-profit organization, or an individual are eligible to be sold?
Q. What happens once a life insurance policy is sold?
A. After a policy is sold, all rights and obligations are transferred to the new owner. Policy sellers are no longer responsible for paying premiums and are free to use the proceeds as desired.
Q. What factors go into an offer that is received?
A. The gross offer for your policy is based on your age, life expectancy, premium costs, insurance company rating, and other policy details. Although you will never pay out-of-pocket expenses for any life settlement services, the net offer will reflect the fee earned by a life settlement broker which is fully disclosed.
Q. Is this industry for life settlement funding regulated?
A. Most states regulate the sale of life insurance policies. Providers and brokers need to be licensed in those states where required.
Do you have other life settlement funding questions? Please contact us and ask us how we can help you.
Take this simple test to see if you qualify
"Life insurance settlements provide living benefits that can be utilized by individuals, corporations, trusts, and non-profit or charitable organizations, alike. Senior policy holders, certified financial planners and their clients need to be acutely aware of the tremendous monetary value hidden within many life insurance policies."
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Life settlement companies vary greatly
in quality, experience, and in having
a policy owner's best interest in mind.
Turn to trusted professionals to receive
the life settlement regulations for your state
along with a free, no-obligation policy appraisal!
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