Important Message for Senior Life Policyholders
Don’t let your valuable life policy lapse or be cancelled. You should first be informed about potential cash benefits from your life policy. A life or (viatical) settlement could possibly pay more than the cash surrender value of your policy.
What is a Life Settlement?
A life settlement is when a qualified policyholder decides to sell his or her life policy before it lapses or is no longer needed while they are still alive.
Why Choose a Life Settlement?
There are a lot of reasons why some would choose to sell their policy.
The reasons range from the following:
- The original need no longer exists for that policy.
- Money is needed now for living expenses, hospital, doctor bills, etc.
- The beneficiary of the policy is deceased.
- Convert into a long-term health care plan and long-term income (annuities).
- Use the proceeds for a charity donation while still living
- The policyholder owns multiple policies and wishes to eliminate one.
- Policy premiums are too high.
- Maybe the policy was purchased for a key man. Used by companies to protect from the loss of a key person.
- Maybe just to raise standard of living while the policyholder is still alive; the policyholder can enjoy the benefits from no longer having heavy financial burdens.
Who is a Candidate for a Life Settlement?
These are the general circumstances that may indicate if you are a potential candidate for a life settlement.
- Females over the age of 70
- Males over the age of 65
- Individuals with a life expectancy of 12 years or less
- Anyone suffering from a terminal illness
- Minimum of $100,000 life insurance coverage
What’s the Process and Cost?
There is no cost paid by the policyholder or seller of that policy. The costs of all the transaction fees are paid by the purchaser. First, we take on an application and set up a (PHI) Personal Health Interview over the phone. Next, we order your doctor reports and review them to determine eligibility. Please be assured that your records and personal information will be held in the strictest confidence. Then, negotiations with the most respected and trusted funders in the industry begin. This is when the highest offer will be obtained. Once the settlement amount is accepted by the policyholder, the sale is complete. Policy ownership and beneficiary rights are then transferred and you then receive the settlement amount. The amount of time varies and should be completed in 8-12 weeks. After the sale is complete, the policyholder has about 14 days to change his or her mind; time varies from state to state.
Please carefully consider this option. It may or may not be something that would suit your needs. Your life policy could have special value to you and is important for you to keep in force. Receiving a viatical settlement now could alter your eligibility for public assistance programs such as Social Security, Medicaid, food stamps, etc. Also, there are some tax advantages to consider. Most funds are tax-free, but your tax advisor and CPA would handle this matter because this varies from state to state. We at Blankenship Insurance Agency hope that you find this information helpful. Go to the Life Settlement page and the other links located on that page for further information. Also, contact us on our Contact page, and send us your questions and let us know what you are interested in.