FAQ's

Question 1

What is the fee?

Accepted Answer

There is no fee to receive a policy appraisal. The life settlement broker is paid by the third-party funder. The life insurance policyholder has zero out of pocket expenses.

Question 2

Do I have to take a medical exam?

Accepted Answer

No, you do not need to complete a medical exam to be eligible for a cash settlement. The third-party funder will review your life insurance policy and your medical history to determine if you will receive a cash settlement offer.

Question 3

How much will I receive for my policy?

Accepted Answer

There are several factors the third-party funders will analyze to determine your appraisal: Age of the insured, Policy type, Death benefit amount, Health history | Current health.

Question 4

How does the life policy appraisal process work?

Accepted Answer

Step-by-step Appraisal and Required Documents: (1) Policy owner completes and signs the appraisal application with our office. (2) Copy of life policy required. (3) Policy "in-force" illustration requested from current life carrier. (4) Medical HIPAA release form signed to permit access to medical records. (5) Insured's life insurance policy annual report requested from current life carrier.

Question 5

How long does the process take to complete?

Accepted Answer

Policyholders may receive an offer (or decline) within one to six weeks, depending on the time it takes to complete the application and to receive the required documents. If you have online access to your medical records, it will shorten the time frame substantially to receive a decision.

Question 6

What ages are eligible for a cash offer?

Accepted Answer

You must be age 65 or over to apply for a cash settlement. There are exceptions to the "age 65" rule based on health of the insured.

Question 7

What is the minimum death benefit amount of life insurance eligible for a cash settlement?

Accepted Answer

Policy must have a minimum death benefit of $100,000.

Question 8

Are all types of life insurance policies eligible for a cash settlement?

Accepted Answer

No. The third-party funder will request a copy of your life insurance policy to determine if you are eligible for a cash settlement. Generally speaking, a convertible term life or a Universal Life policy are recommended to receive a policy appraisal.

Question 9

What if I do not accept the cash offer?

Accepted Answer

You may accept or decline the cash offer. Your policy will remain intact (as is) should you decline the cash offer. Again, there are no fees to complete a policy cash appraisal.

Question 10

What are the primary reasons a person sells their life insurance policy?

Accepted Answer

1. Your life insurance premium is causing financial stress. 2. You do not need the coverage anymore due to life changes. (Spouse passed away, divorce, no financial need, kids are grown, etc.) 3. You have high medical bills or other debts and would like to receive cash to help with the increasing financial burden.

Question 11

Do I have any payments due after I receive my cash payout?

Accepted Answer

No. Once you accept and receive the cash offer, your policy ownership and beneficiary rights will be transferred to the third-party investor for all future premium payments and eventual policy proceeds. All rights to your policy are terminated once cash offer is accepted and received.

Question 12

Do I have to pay tax on my cash proceeds?

Accepted Answer

You only pay tax on the portion of your cash proceeds that is greater than the total amount of premiums paid into your life insurance policy. NOTE: See Your Accountant For Complete Details.

You Have Questions, We Have Answers.