FAQs

Most frequently asked questions (FAQs):

  1. How long will it take to sell my policy and get the money?

Answer: At least 30 days, but more typically about 45 days. The quicker you get us the application form and related documents, the faster we are able to get you an offer and, if you accept, a contract. Once you sign the contract and associated forms, we generally have to wait about two weeks for the change-of-ownership and beneficiary paperwork to be processed by the insurance company before you are paid.

  1. Is this safe and legal?

Answer: Yes. We are fully licensed with the state of New Jersey and Maryland; the process is regulated through the state's Department of Insurance. See Education to learn more about the history of life settlements. Life settlements were first utilized in the 1980s, but the legal basis for them has been in place since 1911.

  1. Am I obligated to sell my policy once I fill out the application?

Answer: No. You are free to reject our offer. By filling out an application you are only investigating the value of your policy and exploring your options.

  1. What types of insurance policies can be sold?

Answer: Just about any. The most common are Universal Life and Whole Life, but even Term, Key-Man, Survivorship, and Group policies can be sold in many cases.

  1. What determines how much I can get for the life insurance policy?

Answer: There are three key factors that we take into account when making an offer: the death benefit of the policy, health and age of the insured, and the cost of future premiums. Please remember that your policy may have a very high market value even though it has a zero cash surrender value.

  1. Is selling the insurance policy right for me?

Answer: We recommend that you consult with a financial advisor and/or attorney when deciding. Some key questions that may arise are:

  • Does my need for cash now outweigh the need for a death benefit to my beneficiaries?

  • Will I have to keep paying premiums to keep the policy in force? Will the cost of these premiums escalate over time? Can I afford to keep paying these premiums?

  • Are there better alternatives to selling (e.g., accelerated death benefits, borrowing against the cash surrender value, borrowing from a family member)

  • Can I keep my permanent life coverage in place and still qualify for Medicaid?

  • Will my estate be so large as to be subject to federal estate taxes upon my death? Did I purchase my policy for estate planning reasons when the federal exclusion was much lower?

  • Have the circumstances in my business changed such that I no longer need a Key-Man policy? Can my business afford to keep paying these premiums or does it need cash for more important purposes?

  1. What are the fees? How much will this cost me?

Answer: You will not have to pay us anything for an evaluation of your policy, which we will provide without any obligation on your part whatsoever.

  1. What are the tax implications of selling my policy?

Answer: Check with your accountant for the answer to this question. We are happy to work with your accountant, and any of your advisors, in a discussion about the suitability and financial consequences of this transaction.