Learn about Frequently asked life settlement questions and answers. Use your power to choose.
Life Settlement Frequently Asked Questions
Are Life Settlements legal?
Yes, According to a U.S. Supreme Court ruling dating back almost a century, a life insurance policy is considered your property. Like any other property, you can sell it, trade it, or give it away. Your insurance company generally has no right to block or question your assignment of the policy rights.
Are Life Settlements regulated?
Life settlements are currently regulated in most states. Typically, licensing and oversight is handled by a state's department of insurance. For more information on how your state regulates life settlements, refer to your state department of insurance website or ask us. We'll be happy to provide you with more information if you need it.
What types of policies are eligible for Life Settlements?
Term Life policies that are convertible, Universal Life, Whole Life Universal Life, Whole Life, Variable Universal Life, issued by U.S. based insurance companies. Joint, second-to-die policies, group policies and those issued by FEGLI, VGLI and SGLI are typically eligible for a life settlement as well.
How much is my policy worth?
Since individual policy amounts, premiums and life expectancies vary, it is difficult to set a standard amount. After a brief consultation, we can generally provide you with an estimate range of your policy's value as a life settlement.
Are there any up-fornt fees or obligation to sell my policy?
There are no applications fees or up-front costs. If at any point you aren't satisfied with the offers we present, you are free to walk away at no obligation or cost to you. If you accept an offer, our fee will be paid directly by the purchaser through the escrow agent.
Is a health exam or credit check required?
No. Unlike when you purchased your life insurance coverage, a health exam isn't required for you to qualify for a life settlement. Medical underwriting decisions are based on an independent review of the medical records we will obtain from your health care providers. Also, there are no credit checks for a life settlement.
How long will it take to get the funds from my policy?
Depending on your state's laws, funds are released from escrow within 72 hours of the buyer's receipt of confirmation of change of ownership and beneficiary rights from the insurance company.
Am I allowed to change my mind?
In most states you have 15 days (in some states up to 30 days) after the receipt of the proceeds to change your mind.
Why should I work with a life settlement broker?
We strongly recommend working with a licensed life settlement broker rather than directly working with a buyer. As a broker, we will shop your policy to more than 30 licensed buyers and provide you with several offers to choose from. This competitive bidding process means that you will get the most for your policy. And unlike direct buyers, we are able to provide you with access to multiple offers and funding choices.
Are there options if I don't want to sell my policy?
Yes. We offer access to life insurance loan and retained benefit programs the give you the opportunity to preserve a larger portion of the policy's benefit.