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FAQ

Life Settlements Most Frequently Asked Questions

What is a Life Settlement?

A life settlement is the sale of an existing life insurance policy to a third party for more than its cash surrender value, but less than its net death benefit.

Common transacted policies:

  • Survivorship
  • Universal Life
  • Joint Life
  • Term/Convertable
  • Variable Life
Why should I sell my Life Insurance policy?

If you do not need to preserve the death benefit and your money is needed now, then selling your policy may be the best option for you.
Reasons to Sell:

  • The death benefit is no longer needed.
  • Insurance premiums are no longer affordable.
  • Money is needed for long-term care or medical expenses.
  • Policyholder would like to retire.
  • The death of a spouse.
How much is my Life Insurance Policy worth?

Since insurance policies and premiums can vary greatly a set cash amount cannot be established prior to an evaluation of your policy. There are many factors that affect what your policy is worth.

  • The value of the policy, also known as the death benefit
  • The amount of the annual premiums.
  • The number of years the premium will need to be paid. This amount is determined based on the life expectancy of the insured.
What happens if I change my mind?

You will receive a variety of offers; however, you’re not obligated to complete the process. You never have to accept an offer that you are not comfortable with. At Atlas Life Settlements, we want you to be comfortable throughout the entire process. We will never push a policyholder to sell their life insurance policy. If you agree and sell your policy, you have 15 days (in some states up to 30 days) after the receipt of the money from the buyer to change your mind. You will always be in control of your life insurance policy and your life settlement.

Will my information be kept confidential?

Privacy is taken very seriously in the Life Settlement Industry All records are kept confidential and never revealed without your consent.

Do I Qualify for a Life Settlement?

Life settlement candidates are 66 years or older. Most no longer have a need for a life insurance policy and have concluded paying high premiums are unnecessary for an unwanted policy. Those faced with an illness and are younger than 66 years old may also qualify for a life settlement. Complete our evaluation form to see if you are eligible.

Are Life Settlements legal and regulated?

Yes, Life Settlements are legal and regulated. In 1911, the Supreme Court recognized the rights of the policyholder’s ability to sell their life insurance policy to a third party was unrelated to the policyholder.

Who will be purchasing my Life Insurance Policy?

A life settlement is the sale of an existing life insurance policy to a third party. We work with institutional brokers, funders, and investors who purchase life insurance policies. We make it our mission to get every client top dollar for their life insurance policy

How long will the Life Settlement process take?

The entire Life Settlement process can take between 60-90 days.

How will my Life Settlement be paid to me?

When a policyholder sells their insurance policy to a third party, the policyholder will receive one cash lump sum. There are no restrictions as to how you can spend your life settlement funds. Use it for the things that matter most to you. Funds are normally used to cover expenses including bills, medical expenses, or retirement. Others have used it to donate to charity.

Are Life Settlement proceeds taxable?

Life Insurance policies are almost always taxable. Anyone selling a policy should seek a tax and legal advice.