Life Settlement Estimate

A life settlement is when you sell your life insurance policy in exchange for a lump sum.

Buyers, also known as providers, pay you money for your policy.

You may qualify for a life settlement if you:

• are at least 70 years of age
• are not chronically or terminally ill
• hold a permanent or term policy
• have a policy with a death benefit of at least $250,000

However, criteria can vary. For example, a few life settlement companies accept policies with death benefits as low as $50,000. To know if your policy qualifies, contact Evolved Life Settlements directly.

Yes, a life settlement does involve fees. The most common fee is a broker compensation fee.

A company known as a life settlement provider would buy your policy.

The company that buys your policy will either hold onto the policy and collect the death benefit itself or resell the policy to an investor.

Some or all of the proceeds of a life settlement may be taxable under federal income tax, state franchise tax, state income tax laws, and/or other tax laws, so you should seek assistance from a professional tax advisor before completing a life settlement.

Cash surrender value is the cash portion or equity of your policy, minus fees and loans.

The death benefit is the amount your beneficiaries receive when you die. The life insurance company is responsible for paying it.

Medical underwriters determine your life expectancy. They use your medical records, as well as statistical data to help them decide. The statistical data includes such details as age, gender, tobacco use, and the overall health of people who are similar to you.

These two types of settlements are similar. Each involves the selling of a life insurance policy for a lump sum.

A life settlement applies if you have a life expectancy of greater than twenty-five months.

A viatical settlement is for those who suffer from a terminal illness. To qualify, you must have a life expectancy of less than twenty-five months.

Life settlements pay more than the cash surrender value but less than the policy’s death benefit.

Buyers use various factors to determine how much to offer. They include your medical condition, the cost of premiums, and the amount of the death benefit.

They also consider other factors such as the rating of the issuing insurance company and current interest rates.

You do not pay the premiums once the policy sells. Your buyer becomes responsible for the premiums.

"Most life settlement transactions take, on average, from four to five months to complete." - lisa.org

First, find a reputable broker. A broker can answer additional questions you may have and assess whether or not your policy qualifies.

You can also approach a buyer directly.

However, a broker has access to many buyers. They often get multiple bids for one policy. Therefore, they can usually get you the best price.

You can change your mind anytime during the process before the sale is final.

A life settlement includes a rescission period after the final sale. You can change your mind during this period. Consult your broker to confirm the recession period applicable to your situation.

One main advantage is the lump sum you receive. There are no restrictions on how you use the cash. You can use the money to fund other life expenses or pay for luxuries. It’s up to you on how you use the money.

Another advantage is that you can stop paying the policy’s premiums once the sale is final. This can save you money, especially if you no longer need the policy.

You may owe taxes on your life settlement.

A life settlement can also disqualify you for government benefits, such as Medicaid, SSI, SNAP and Section 8.

Also be aware that creditors may have a claim to your life settlement proceeds.

You should seek assistance from a professional tax and legal advisor before completing a life settlement.

In most cases, yes. This is especially beneficial if you have several smaller policies. You can bundle the policies together to meet a buyer’s minimum face amount, which is usually $250,000. However, criteria can vary. For example, a few life settlement companies accept policies with death benefits as low as $50,000. To know if your policy qualifies, contact Evolved Life Settlements directly.

There are no laws on how you use the proceeds. Beyond paying the required taxes, you can use the money however you want.