1. What is a Life Settlement?
A life settlement transaction is when the seller (the policy owner) transfers ownership and beneficiary rights of a life insurance policy to a buyer, a licensed life settlement provider.
2. At What Age Can I Sell My Policy?
Life settlements are generally for individuals aged 70 or older. However, if you are younger than 70, you may still qualify, depending on your policy and health status.
3. How Much is My Policy Worth?
Settlement payouts will vary from case to case, primarily depending on the insured’s age, sex, and current health status. But rest assured: Prosperity Life Settlements works for YOU, and will work to get you the highest possible settlement for your policy.
4. Which Policy Types Are Eligible For a Life Settlement?
Universal Life, Whole Life, Term, Convertible Term, Joint, and Second-to-Die life insurance policies, issued by a US-based insurance carrier, and with a face value of at least $100,000 will normally qualify for a life settlement, depending on the insured’s age, sex, and health status. To be eligible, life insurance policies must be at least 2 years old.
5. Will I Continue to Pay Premiums After My Policy is Sold?
No. Once your policy is sold you will not be responsible for any future premium
6. Can’t I Just Surrender it Back to the Insurance Carrier?
Yes, however, we strongly advise against this as your insurance carrier will likely only give you a fraction of the amount of money you could receive from a life settlement.
7. Can’t I just Sell This Policy on My Own?
While theoretically, you could sell it on your own, we highly advise against this. Life Settlements are complex legal and financial transactions. Professional life settlement brokerage assistance is absolutely necessary for complying with regulatory requirements, and the fiduciary responsibility we have to our clients maximizes your settlement. Let us do the work for you!
8. Will My Privacy Be Protected?
9. Are the Proceeds Taxable?
In most cases, yes. We advise you to consult with your CPA and/or tax professional for more information as we are unable to provide any tax advice on this matter.
10. How Can I Use the Proceeds?
There are no restrictions! You can spend your settlement
money any way you’d like.
11. Is This Legal?
Yes! A 1911 U.S. Supreme Court decision (Grigsby v. Russell) deemed life insurance policies as private property. You can sell your policy just as you can sell your car, house, or any other asset. Life settlements are regulated by state insurance departments in most states.
12. Can I Get Cash For My Policy and Still Keep My Coverage?
Yes, in some cases you can maintain a portion of your policy’s death benefit while
still receiving cash.