Frequently Asked Questions
What You Need to Know
Should I Sell My Life Insurance Policy?
The senior population has steadily increased since the 1990’s. In addition, life expectancy in the United States continues to rise. Oftentimes, this creates unexpected financial responsibilities which brings new and unique financial stress to families and individuals.
There are numerous reasons why a policy holder may want or need to assess their life insurance policies to determine their value in the life settlement market. From individuals looking for necessary capital, to a CEO liquidating a key person policy – no one size fits all.
Does The Sale of a Life Insurance Policy Provide Timely Liquidity?
Yes, and no. The process of evaluating the viability of a life insurance policy for resale in the markets is not immediate, but it can be timely. Typically, from inception through funding, a sale can be processed in as little as three weeks, depending on the circumstance. In some instances, multiple life expectancy quotes are vital to assuring a fare valuation. This may expand the window of time underwriting can take. Each individual policy holder’s needs are addressed by Liberty Universal Life Settlements team to insure the best balance of timeliness, security and valuation.
Is Selling My Policy Safe?
As with any financial transaction, it is vital that each individual or adviser knows who is acting as their representative in the market. The life settlement industry is regulated at the state level and has many checks and balances to ensure a safe and fair market. Customer protection is a priority to regulatory bodies and this has worked to codify the life settlement market and provide safety for both buyer and seller.
Additionally, the use of third party escrow has been implemented to facilitate the closing process in life settlement transactions. Large household names like Wells Fargo and Wilmington Trust can act as escrow agents in a transaction. Institutions such as these assure that each aspect of the process is executed properly and is compliant.
Frequently Asked Questions
There are no out of pocket costs when we work with you and you have no obligation to sell your policy or to accept any offer. A third party escrow company is used in every transaction and we work with only the most reputable licensed companies in the industry.
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! However, you must contact your own tax professional or CPA for specific advice concernng your individual situation as we do not provide.
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.
As part of the application process, we provide you with full and complete disclosure of the fees for our services. We don’t charge any up-front fees and don’t get paid until we sell your policy.
Life settlements are complex legal and financial transactions. Compliance regulations continually change, further complicating matters. Professional assistance is necessary not only to navigate this market, but also to maximize the policy’s value in the marketplace and to locate an appropriate buyer quickly.
No, once the policy is sold, you have no future premium obligations whatsoever.
Generally, a policy with a face value of $50,000 or higher could be eligible to convert into a life settlement.
In general, life settlements are a ideal 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.
Policy amounts and payouts differ, making it impossible to set a standard amount. However you can generally expect to get a significant percentage of your policy value – well in excess of the surrender value. Our Policy Calculator is a great tool to get you started with an estimate of what your policy may be worth.
What Are The Unknown Unknowns?
At Liberty Universal Life Settlements, we come from a financial and legal education background. With a firm historical footing in the insurance and life settlement market we have the unique ability to navigate the sometimes complex waters of the industry. From a bird’s eye view, it may seem that life settlements are fairly simple instruments, but once one peals away the layers it becomes obvious that there are many nuances inherent to the process. A good brokerage works aggressively for the best pricing and is focused on ensuring each transaction is compliant. Each policy holder deserves to have a team that is committed to education and the fidelity of the process – for the parts both seen and unseen in the industry.
Liberty Universal Life Settlements’ network endeavors to guide you seamlessly through all aspects of this process.