Life Settlementsyour life insurance policies maybe one that can be transformed into an source of income,to be used as you see fit while you are still alive. A secondary market for life insurance policies, populated by major institutional investors searching for diversified investment options, now exist. That means that hidden in your safe deposit box or bottom drawer may be an underappreciated asset. A life settlement is the sale to a third party of an existing life insurance policy for more than its cash surrender value but less than its net death benefit. Such transactions are usually undertaken for the purposes of estate- or financial planning. Articles That Will Help You Understand Life SettlementsLife Settlement Misconceptions
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Frequently Asked Questions:Q. What is a Life Settlement? A. A transaction whereby a written agreement is solicited, negotiated, offered, entered into, delivered, or issued for delivery in this state, under which a life settlement provider acquires, through assignment, sale, or transfer, a policy insuring the life of an individual who does not have a catastrophic or life-threatening illness or condition by paying the owner or certificate holder compensation or anything of value that is less than the net death benefit of the policy.
Q. What are the benefits of selling my life insurance
policy? A. Selling your life insurance policy may allow you to:
_________________________________________________________________ Q. How much can I expect to receive? A. An offer for a policy is affected by a number of factors such as your life expectancy, future premiums due on the policy, whether or not there is a loan on the policy, and the market conditions for your policy. We always try to make the most competitive offer possible. We never charges a fee for reviewing your policy and you are never under any obligation or pressure to sell your policy. Q. What type and size of policy can be sold? A. Most individual and group life insurance policies with a face value of $100,000 or greater can be sold. The policy must not contain a restriction prohibiting transfer of ownership rights and all parties must agree to the transfer of ownership. Q. Am I responsible for my premiums after I sell my policy? A.No, the person who buys the rights to your policy is responsible for the payment of the premiums. _________________________________________________________________ Q. How long does the process take? A. The entire process usually takes between 3 and 6 weeks, depending on the amount of cooperation from your health care providers and your life insurance company. Q. What does the service cost? A. The company I us charges no fees to you. Q. What are the tax consequences of selling my policy? A.We cannot give tax advice. In some circumstances, the money you receive from the sale of your policy may be exempt from federal income tax and state income tax. In addition, federal law requires that our escrow agent send an Internal Revenue Service Form 1099 to the owner of the policy and the IRS. This cannot be avoided by directing that the proceeds be paid to another party. We recommend you check with a tax professional in your state for the latest information. Q. Is your Funding source registered? A.The funder I use is located in PA and is registered as a life settlement provider by the PA Department of Insurance. Q. How are funds delivered? A. Although you can request a regular business check, we HIGHLY recommend that you request a wire transfer. Wire transfers are faster, more secure, and not subject to being held for several business days until the check clears. Each bank has its own instructions for wiring funds. Your bank can provide you with
wiring information. Q. Do you purchase foreign life insurance policies or US policies on the lives of foreign persons? A.The policy must be issued by a United States of America insurer or a foreign insurer which does business in the
United States of America and is subject to United States of America laws. If the insured is a resident alien with a United States of America social security number, we may be able to purchase the policy.
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