Frequently asked Questions

What is a Life Settlement?
A financial tool used by senior policy owners and financial advisors applied to life insurance creating money in excess of cash surrender value.

Why would someone consider a Life Settlement?

• Insurance needs change

• Create more comfortable retirement years

• Fund new needed Annuities, Life Insurance, Long-Term Care or Investments

• Fund the purchase of a needed survivorship policy

• Fund a single premium life insurance policy

• Settle personal or business debts proactively

• Bestow cash gifts to family members or charities

• Maintain a lifestyle despite changes in finances or health

• Activate income from an inactive asset

• A more profitable alternative than surrender or lapse

What types of policies are considered?

Almost any type of life insurance…

• term

• universal life

• whole life

• survivorship

• key-man

• Variable Universal Life

• Convertible Term

All policies must be beyond the contestability stage.

owned by…

• an individual

• trust

• corporation

• charitable organization

How much will I receive for my policy?
There are many factors that determine the offer amounts:

• Age

• Premiums

• Client's health

• Type of policy

• Insurance company rating

• Policy size

• Competitive bidding

As a general rule: age, health and future premiums are the primary factors that determine the amount of the Life Settlement offer.

Will premiums be due after the policy is sold?

No, once the policy is sold, the client will have no future premium obligations whatsoever.

How long does it take?
The offer process can occur within two weeks. If you accept the offer, you normally see payment within one month - approximately six weeks total from the time of qualification to receipt of proceeds.

Is there any obligation?
There is no obligation to accept a Life Settlement offer.

What if I change my mind?
Most Life Settlement transaction has a 15-day rescission period. As the previous policy owner, you can change your mind and get the policy transferred back to you within fifteen days after receiving your funds.

Are the proceeds taxable?
As with all financial decisions, you should consult a professional tax advisor. In general, the proceeds are:

• Tax free up to the basis

• As ordinary income up to cash surrender value

• Taxed as long term capital gains beyond basis

What is the process, and how do I get started?

The first step is fill out our free quote form or call us at 1-800-760-7723. Once we determine the viability of the transaction you will need to obtain a current policy illustration from the insurance provider and forward it to us. The second step is to complete and return your short application. As soon as we receive the application, we can start the initial appraisal process. The application gathers some personal, policy related and general medical history information. The third step, and still prior to being able to offer a quote, consists of the gathering of copies of the client's medical records for the last two years; including office notes, labs, pathology reports and possible x-rays. Atlantic Coast Settlements will assist you throughout the entire application process. All information is kept strictly confidential.

Please call 1-800-760-7723 for more information.