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  • Fixed Annuities
  • Equity Index Annuities
  • Variable Annuities

If you can no longer afford, or no longer need your life insurance policy life settlements may be your answer.

Most people do not realize that life insurance is an asset class. The life settlement industry has provided a marketplace for policy owners to sell unwanted or unneeded life insurance policies. Generally, seniors 70 and older who own life insurance policies are candidates. The policy owner is paid a lump sum in cash in exchange for transferring the rights of ownership of the policy to the buyer. The amount paid to the seller is calculated based on the specific life expectancy of the underlying insured and may be stated as a percentage of the policy’s face amount.

Regardless of original purpose for the policy, here is a list of policies that may qualify

• term
• universal life
• whole life
• keyman owned by...
• an individual
• trust
• corporation
• charitable organization

Benefits of a Life Settlement

• Create liquidity to maintain lifestyle due to changes in finances or health
• Eliminate/reduce future life insurance premiums on a new policy
• Provide funding for new needed Coverage, Annuities, Long-Term Care or Investments
• A more profitable payout alternative than surrender or lapse
• Fund a single premium Annuity/Life
• Fund the purchase of a needed survivorship policy

Life Settlement Risks

Prior to entering into a life settlement transaction, you should be apprised of a variety of risk factors. The following risks are associated with a life settlement transaction:

1. Once your policy is sold, your intended beneficiary is no longer entitled to receive the death benefit upon your passing.
2. Once you sell your in-force life insurance, you may not be able to obtain additional life insurance due to health and/or financially related issues.
3. The sale of your life insurance requires disclosure of personal medical information to prospective purchasers.
4. The sale of your life insurance is made to unrelated third party who may in the normal course of business transfer the policy to a subsequent buyer.
5. The sale of your policy traditionally requires you to provide updates as to your health and address to the buyer of the policy
6. The sale of your policy will entail the payment of commissions which are currently unregulated. You should require full disclosure of sale price and related commissions prior to the finalization of the policy sale.
7. The sale of your policy may create an income tax liability. Prior to finalizing the sale of your policy you should consult with an experience tax advisor to determine the extent of the taxable and related income tax.

To find out more about the process, underwriting, and if you qualify, contact Life Audit Professionals, LLC and take advantage of our expertise in selling life insurance policies and our knowledge of the settlement marketplace.