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Life Settlement FAQ's
All your questions are answered about life settlements.
LIFE SETTLEMENT FREQUENTLY ASKED QUESTIONS
Q. Why haven’t I heard about life settlements before?
A. With people living longer and wanting more in their retirement, life
settlements have gained popularity in recent years. They have become a
viable alternative to realize immediate cash assets.
Q. Is a life settlement a smart financial option for me?
A. Most life settlement candidates are people 65 years or older who have
reevaluated their need for a life insurance policy. Rather than continue paying
expensive premiums for an unneeded policy, they convert it to cash funds to
enjoy while they are alive.
Q. What is my policy worth?
A. Policy amounts and investors differ, making it impossible to set a standard
amount. However, you can generally expect to get a significant percentage of
your policy’s value — well in excess of the surrender value.
Q. What are the fees for a life settlement transaction?
A. This is an important question because most life settlement brokers do not
disclose what they charge. Hidden fees might mean you are paying more than
you realize, or receiving less for your investment than you might elsewhere.
PolicyOptions offers full disclosure and a low, standard fee.
Q. Will my privacy be protected?
A. Absolutely. Our privacy policy and advanced transaction procedures ensure
that your identity is never revealed to anyone without your consent.
Q. How long does it take to get the funds from my policy?
A. Like any transaction, the time frame can vary. Once you qualify and we
begin looking for an investor, it typically takes about four to eight weeks to
receive your funds.
Q. Who is going to buy my policy?
A. Normally, life insurance policies are purchased by large banks and financial
institutions who are interested in buying a variety of assets to balance their
investment portfolios.
Q. Who should consider a life settlement?
A. In general, life settlements are a smart idea for people 65 and over, who no
longer need a life insurance policy to protect their children or assets or can no
longer afford to pay expensive premiums.
Q. What types of policies can be sold in a life settlement?
A. Universal Life, Whole Life, Variable Universal Life, Term and Convertible
Term Life policies issued by U.S.-based insurance companies. Joint and
second-to-die policies are eligible as well.
Q. How much should the policy’s face value be?
A. Generally, a policy with a face value of $50,000 or higher may be eligible to
convert into a life settlement.
Q. Will I have to pay any premiums after my policy is sold?
A. No, once the policy is sold, you will have no future premium obligations
whatsoever.
Q. What if I want a life settlement, but still need or want life insurance?
A. This is an individual decision. Some people like to have some coverage
after selling their policy in a life settlement. This is absolutely possible. We are
happy to discuss your options, or you can consult your agent or financial
advisor.
Q. Can I sell my life insurance policy on my own?
A. Life settlements are complex legal and financial transactions. Compliance
regulations continually change, further complicating matters. Professional
assistance is necessary not only to navigate this world, but also to maximize
the policy’s value in the marketplace and to locate an appropriate buyer
quickly. A new site that is marketplace for policy holders to receive bids on their policy can be found at http://lifesettlementexpert.com
Q. Wouldn't it be easier to return my policy for the surrender amount?
A. This can be a costly decision. Generally speaking, the surrender amount on
your policy is a fraction of what we can sell it for in a life settlement. Why cheat
yourself of money you deserve?
Q. Will I owe taxes on the money I receive?
A. Typically, the money you receive in a life settlement will be tax-free up to the
original policy’s tax basis. This represents a powerful financial benefit!
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