SELLING YOUR POLICY
What types of policies can be sold in a Settlement?
There are several types of policies that can be sold in a Settlement. They include:
- Universal Life
- Whole Life
- Variable Universal Life
- Term and Convertible Term Life policies issued by insurance companies based in the United States
- Joint policies
- Second-To-Die policies
Please Contact Us if you have any questions about policies that qualify for Settlement.
Can I sell my life insurance policy on my own?
In most financial and estate plans this would not be recommended. Life Settlements are very complex legal and financial transactions. This is further complicated by continuously changing compliance regulations, which requires diligence to ensure that best practices are being implemented at all times. Simply navigating this market requires professional assistance, in addition to maximizing the policy’s value in the marketplace and locating an viable buyer in a timely fashion.
ALIR values each relationship it cultivates with policy holders. We have a responsibility to represent every individuals best interest and value our reputation in the Life Settlement industry. Your trust in ALIR Settlements is not misplaced.
Should I work with more than one funding source?
One of our goals during the Settlement process is maximizing your policy’s value in the marketplace. Since buyers tend to avoid policies that they have received from multiple brokers or providers, working with more than one funding source could inadvertently result in lesser valuations or unnecessary delays in funding.
What is my policy worth?
Since policy amounts and payouts widely differ, it is impossible to set a standard amount. Experience indicates that historically policy holders can generally expect to get a significant percentage of their policy value—well in excess of the surrender value.
ALIR Settlements Life Settlement Calculator is a prudent place to start if you need a quick estimate of what your policies cash value.
How much should the policy’s face value be?
Typically, a policy with a face value of $50,000 or higher could be eligible to convert into a Life Settlement.
Who is going to buy my policy?
We have built strong relationships with a broad network of investors experienced in the life settlement industry. Our investor network is interested in buying a variety of assets to balance their investment portfolios. These are the companies and individuals that we work with to sell your life insurance policy.
How long will it take for me to receive the funds from my policy?
Your Settlement amount will be released from escrow within 72 hours of the buyer’s receipt of the confirmation of change of ownership and beneficiary rights from the insurance company.
What are the fees associated with a Life Settlement transaction?
It is important to us for you to feel comfortable entrusting us with your asset. Therefore, we do not charge any up-front fees. As far payment and compensation details, ALIR will provide you with full and complete disclosure of fees for our service very early in the process.
Wouldn’t it be easier to return my policy for the surrender amount?
Historically surrendering the policy yields less value to policy holders. Often the surrender value turns out to be a fraction the value realized via a Life Settlement. In addition, ALIR Settlements facilitates the bulk of the paperwork and underwriting burden during the settlement process. Policy holders can choose to be involved in the process as little or as much as they desire.
Will I still be obligated to pay premiums anymore after my policy is sold?
No. Once the policy is sold, individuals are no longer responsible for paying any future premiums. Our Life Settlement Calculator will give you an approximation of how much you can expect to save in the future once you are no longer obligated to pay those premiums on your policy. The amount may surprise you!
Will I owe taxes on the money I receive?
Typically, the money that you receive in a Life Settlement will be tax-free up to the original policy’s tax basis. This can be highly beneficial to policy holders. However, we are not tax experts. For the best possible outcome, we strongly urge you to contact your own tax professional or CPA for specific advice concerning your situation.
Are there restrictions on how I can use the funds I receive from my Settlement?
No. This is where Life Settlements stand out from many of the other common financial options for seniors. You will be completely free to decide how you want to use the proceeds from your Life Settlement.