Funding Life Settlements


What Does This Mean?

It is the selling of Life Insurance policies which are no longer wanted or needed for more cash than you will receive from the Insurance Company.



Unlock the HIDDEN VALUE in your Life Insurance Policy



All types of Insurance policies qualify...
even Term Insurance with NO CASH VALUE!

A Life Settlement gives the policy owner the ability to sell their existing life insurance policy which they no longer want or need and receive a cash amount based on each policy's face amount, in excess of the case surrender value.  Traditionally, when the fundamental need for life insurance was no longer existed because of changing circumstances, policy owners had two basic choices: surrender the policy for the cash value or let the policy lapse.

Now, with a Life Settlement, you can discover a new source of wealth!

Why Life Settlements?
Insurance no longer needed
Business related issues
Estate Tax issues
Premiums no longer affordable
Retirement and Key Man policies
Family issues
Non-performing current policies

Is Insurance still needed...you can use the cash you recieve to fund a second-to-die policy or other life insurance.  You can also purchase annuities, long term care or use it for personal expenses, etc.

Q&A

Q: What is a Life Settlement?

A: A Life Settlement involves the sale of a life insurance policy, which is still in force, where the insured is at least 65 years old in return for cash consideration greater than the policy's cash surrender value but, less than the policy's face amount.  The money that you receive belongs to you!  It is not a loan and there are not strings attached!

Q:  Why would a policy owner want to sell their Life Insurance policy?

A: A life insurance policy is the owners property.  A policy may be sold when the owner has determined they no longer need the policy.  This may arise in circumstances such as, business owned policies where the insured no longer is connected to the business or where the insurance proceeds no longer are needed to pay estate taxes or final expenses.  The contract may be sold for any reason the owner desires.

Q: What kind of policy will the Life Settlement company purhase?

A: The Life Settlement company will purchase whole life, universal life and convertible/term policies.

Q: Who will be responsible for the premium payment after the policy's sale?

A: The Life Settlement company will be responsible for all premium paymetns after the sale has closed.

Q: Is the process confidential?

A: Yes!  No medical, financial or other personal information that the Life Settlement company obtains as a result fo the transaction will be disclosed to any other person or entity, not a part of the process, without the specific written consent of the insured, unless required by law.

Q: Are there restrictions as to how the funds may be used?

A: The Life Settlement Company places no restrictions on how the funds are to be used after the contract is purchased.


Q: How does a Life Settlement work?

A: The insured and the contract owner, if different than the insured, submits an application with a copy of the insurance policy.  Also, a current illustration of the policy from the issuing insurer showing it is in force and indicating the face amount, outstanding loans and any premiums due is needed.  The Life Settlement company will request copies of the insured's medical records, directly from the insured's physicians.  They will review the records to determine if the insured meets the Life Settlement guideslines.  If the guidelines are met, an offer on the policy is made.  Once the offer is accepted, the transaction is documented and proceeds to closing.  An escrow account ensures the policy's owner receives the purchase price.  In most cases, the policy's seller has the right to rescind the transaction within 15 days fo the closing, so long as, the pruchase price and any premiums paid by the Life Settlement company are returned.

Q: How long does it take to complete a transaction from start to finish? 

A: The Life Settlement company's goal is to complete most transactions within 30 days.  The most significant delay is the need to review and evauate the insured's medical records carefully.  Obtaining these records may also take some time.

Q: Does the client have to sell all of their Life Insurance policy?

A: NO!  The owner may sell all or part of the coverage as he or she desires, provided that a minimum policy size of $250,000 is met.

Q: How much will the owner be paid for the policy?

A: The amount paid to the policy owner depends upon a number of factors, including the insured's life expectancy, the amount of premiums needed to be paid to keep the policy in force and the policy's cash surrender value.

Q: Are the proceeds from a Life Settlement taxable?

A: The proceeds from a Life Settlement usually are tax-free up to the amount invested in the policy.  The difference between that amount and the cash surrender value is that the cash surrender value is usually taxable as ordinary income.  Amounts received exceeding the cash surrender value usually are taxed as capital gains.  Sellers should consult their own tax and financial advisers before completing a transaction, so they can determine what tax effect the sale will have on them.

Q: Is it okay to sell and buy Life Insurance policies?

A: Yes!  When a Life Insurance policy is issued an put in force, it is the contract owners property.  Much like any other asset, the policy owner has the right to dispose of the policy in any manner that they choose.  Options include holding the  policy until maturity, surrendering it for its cash value, allowing the contract to lapse or selling it for an amount higher than the cash value, but less than the face amount.

When deciding whether a Life Settlement is the right choice, you should consider the following:

If the answer to any of these questions is YES, then you may no longer need the life insurance policy.  Also, other situations may arise, such as, family, business or financial which disclose the need that a life insurance policy still exists but a new, more cost efficient policy should be considered.

Don't surrender your policy until you have received an alternative quote from us!




Please contact us for a free, confidential evaluation at 800-292-4765 or E-mail: info@destinyfundingsolutions.com . Remember to include your name, phone number, and e-mail when contacting us.