Category: Life Insurance Settlements

How To Exchange Your Life Insurance For Money

Life is unpredictable and you never know when you are going to need money. And unfortunately for many, you end up in situations where you need money that you just not have. I have many senior citizen friends who run into this problem. Their social security checks stop coming and they are in desperate need for money. So what do they do? Well, some of them have came up to me and asked me if they could somehow trade their life insurance policy for some much-needed money.

And what did I tell them? Well, I could not give them a definitive yes or no. There are factors to consider when trying to exchange your life insurance for money, in a process known as life settlement. Let’s delve into these factors.

How Do I Know If I Can Do A Life Settlement?

The first qualifier is that you have to be more than 70 years old. The next qualifier is that your life insurance policy is valued at $100K at least. The third qualifier is that your expected time of death is not after the coverage expires. If you meet all three of those qualifiers, you are not quite in the clear yet. Your policy would still need to be considered profitable by the person that is looking to buy your policy or else they would not want to buy it. This means that they have to look at the exact terms of your policy and determine if there is a profit to be made by paying you for the policy and then paying the premiums until you die as well. Basically, the payout from the policy once you die will have to equal more than the amount they pay you for the policy and the combined total they pay for premiums by the time of your death. If they do determine that there is a profit to be made, then congrats, you qualify for a life settlement!

Why Would I Want To Exchange My Life Insurance Policy For Money?

Well, besides needing money in an urgent situation, there other practical situations where this type of settlement would prove beneficial. Let’s take a look.

I No Longer Need My Life Insurance

Whoever you elected to receive the payout from your policy when you die might be financially set and not need the payout anymore. No matter if it is because they have a nice high-paying job or if you already have your own private savings for them that you feel is enough. If you feel that the person who will receive the payout does not need it, why should you keep paying the premiums?

I Can’t Afford To Pay My Premiums Anymore

This is probably the most common situation. Not everyone gets to live comfortably, especially in their older days. There are plenty of medical and living expenses that one has to worry about when they are older and sometimes social security just is not enough. Not to mention, those premiums can get pretty up there in price. If you can’t pay the premiums anymore, it is a far better idea to try to get some money out of the policy through a life settlement than letting your coverage lapse and not receiving anything.

If you have life insurance, odds are that you bought it when you were younger and your life situation was much different. As we all know, life is unpredictable and plenty of things can and do happen that dramatically change your situation. Perhaps you were worried about the financial outlook of the country and you wanted to make sure your children were set. But now the economy is stable and your children are well off and it is not worth the premiums anymore. These are very common issues and many people just choose to let their coverage lapse and they lose all of the money that they have put into their policies over the years.

Who Exactly Are These “investors” That Take Part In Life Settlements?

The investors are basically companies known as life settlement providers. They are not individual investors looking to make a profit. They work together and buy thousands of profitable policies from people just like you. In fact, these investors buy in excess of 1 billion USD worth of life insurance policies each year in just the United States. And do not worry, life settlements are not some brand new institution with Wild West-esque rules. Life settlements became popular over 30 years ago and in that time, the government has gotten itself deeply involved to ensure ethical practices are employed to protect vulnerable seniors.

Where Do I Find These Life Settlement Providers?

All you have to do is a simple Google search and you will find plenty of results for life settlement providers. Make sure to take a look at your policy before doing a search and then find a provider that is shopping around for a policy that best matches yours. This increases the chances of you finding a provider who will actually buy your policy.

Some Additional Information

The higher your age is, the more profitable your policy is to the life settlement providers. Now, do not misinterpret that and think that I am telling you to wait until you are 85 to look for buyers. Especially if you need the money NOW. However, you are more likely to find a buyer the older you are. Remember that you must be over 70 to be considered eligible. I should note that many buyers will not buy policies from people any younger than 73, though.

Additionally, most buyers will pay you roughly 20 percent of the worth of your life insurance policy. Let’s say that your policy is valued at $150K. The life settlement provider that you got matched with would offer you somewhere in the ballpark of $30K to purchase your policy. If you choose to accept this offer, you will get the $30K in one payment in cash. After that, you will no longer have to pay the premiums as that burden will be transferred to the buyer.

A word of caution: Do not jump on the first offer you receive. There are sharks out there that will try to fleece seniors for their life insurance policies to make the maximum profit. Make sure to receive offers from various providers and pick the best offer. If you are not confident in your abilities to negotiate with these big companies, you can always hire a life settlement advisor or even someone to broker a deal on your behalf.

A Life Settlement Is Not Your Only Option

If you are in a situation where you just desperately need money, you do not need to go through the trials and tribulations of getting a life settlement completed. You can always try to get money out of your life insurance policy itself. Of course, the amount that you are able to get is based on your insurance provider and how much you have in the policy. That said, this is probably not an attractive option for those who no longer want to or are no longer able to pay their premiums. This is because you still have to pay your premiums when you take money out of your policy. Another alternative is to take out a loan based on your policy. This allows you to take out a cash loan equal to what your policy is valued at. Be warned though, you will have to pay this loan back and it is not interest-free. Additionally, you will still have the burden of having to pay those premiums as well. Probably not the best option for those who no longer want their policy.

One Final Bit Of Advice

I strongly recommend that you do not let your life insurance coverage lapse. You are basically burning money when you do that. Years of paying those annoying premiums. Think of what you could have done with that money instead. I understand the concerns of no longer being able to pay the premiums. But please, explore other options such as life settlements. It is better to get something out of your policy when you get sick of paying premiums instead of just letting it lapse and getting nothing. Almost 5 percent of those with life insurance policies lapse on their coverage each and every single year. I do not want you to become part of that statistic when you can instead get some money out of your unwanted policy.

Exchange Your Life Insurance For Money Conclusion

I hope this guide was able to help you navigate the tricky waters of exchanging your life insurance policy for cold hard cash. Life settlements are not a simple procedure and life settlement providers will try their best to buy your policy for the lowest amount possible. Be sure to heed my advice and shop around for the best offer and perhaps seek professional help if you are concerned about getting ripped off. Good luck!

The Federal Deposit Insurance Corporation is a government corporation is a government entity that ensures bank deposits and thrift institutions by at least $250,000. The organization promotes and preserve public confidence in the financial system so that individuals can conduct their large transactions without fear of issues arising. In 2010, the FDIC released an insight guide concerning an industry that has grown to be significant – the life settlement industry.

While there are certainly promising features of life settlements, there are also a number of factors that individuals should be aware of before deciding that a life settlement is the right option for them.

What Is A Senior Life Settlement (SLS)?

A Senior Life Settlement is a transaction whereby an individual can sell his or her life insurance policy to a company and receive a lump sump payment in return. The amount that an individual receives is often more than the surrender value, but much less than the death benefit. Additionally, the settlement company will often collect life insurance policies that it has collected and repackage them into bonds. When they are packaged into bonds, they become securities and are termed “death bonds.”

Life settlement companies often target older individuals who are ages 65 and above and who are in poor health as well. After all, the settlement company only receives a return on their investment when the individual passes away. As previously mentioned, life settlements may be touted as a positive investment for many older individuals, but there are certainly risks as well – including that of fraud.

The History Of The Senior Life Settlement Market

The SLS market has an extensive history and it originated in 1911 with a United States Supreme Court Case called Grisby vs. Russel. The court held that the policy holder had the right to transfer their insurance policy. While the court did not specify that a life insurance policy, this holding opened the way to transfer life insurance policies anyway.

At first, life settlements were called “viatical settlements” – but as individuals can tell, it isn’t a very attractive term, hence the transition to “life settlements.” Throughout its development, the life settlement companies faced a number of challenges.

In particular, men and women were living longer due to the progression of medical technology. The higher life expectancy rates meant that life settlements companies had to wait longer to receive the death benefit. To hedge against this, life settlement companies started creating death bonds, which are securitized. A security is a type of investment tool that is regulated by the Securities Exchange Commission and that is subject to specific regulations.

For many, death bonds are an investment tool and offer a number of promising features. For example, performance of these bond is not connected to the market’s influence like most securities. Further, the value does not rise and fall either. Also, because death bonds are a collection of investments, the risk is distributed over a large pool, thereby reducing the risk and perhaps enhancing the return.

There are pitfalls to be aware of as well. While investors certainly may luck out when it comes to these transactions, those who sell their life insurance policies may find themselves at risk. According to the American Council of Life Insurers, life settlements should be banned because the securitization of them (death bonds) could increase the level of fraudulent activity, particularly when it comes to Stranger Originated Life Insurance (STOLI).

To put it into perspective, STOLI is the creation of a life insurance policy that is created for the benefit of an individual who has no insurable interest. While a New York court case in 2010 had prevented such a practice, the law was later revised to allow for it.

Are Senior Life Settlements Regulated?

While there is no overarching federal legislation concerning life settlements – aside from federal securities laws controlling death bonds, some states have enacted their own legislation to control the complex financial transactions. In addition, states have their own securities regulation that complies with federal law as well to control death bonds.

According to the FDIC, most state laws have been developed by the National Association of Insurance Commissioners. The law addresses factors such as licensing requirements annual reporting, setting the standard for reasonable returns from the sale of insurance policies, and it also prohibits finders fees to the physician of the insured. These practices are meant to protect individuals, much more than the life settlement companies.

Unfortunately, when it comes to death bonds, there are many companies that operate under federal securities laws, but they fail to comply with them. Worse yet, not only do they fail to comply, but their lack of compliance is infrequently brought to the attention of the SEC. The lack of regulation cause more issues for those who are interested in life settlement because it increases their risk to fraud.

How Consumers Can Protect Themselves

Consumers who are interested in life settlements do have avenues to protect themselves against fraudulent life settlement companies, even in the face of aggressive marketing tactics. According to the FDIC, the amount of life settlement companies is growing, which means there is more aggression and competition.

Rather than fall prey to tactics, here are the factors that consumers should take into account when choosing a life settlement:

• Verify that the life settlement company or broker is licensed
• Look for third-party issued information concerning life settlement companies and their licenses
• Do not be pressured to make a quick decision
• Calculate the transaction costs, ensure that the price for the policy is fair, and choose a transparent company that identifies all of the fees commission, and the like
• Assess the impact of the policy’s sale upon survivors – consider their income and financial need at the time of one’s passing
• Determine the tax consequences and try consulting at ax professional

Further, it is useful to get legal advice as well and to read the privacy policy. Companies often sell the insurance policy to a third party, which may thus gain access to a range of personal information that can put one at risk.

Overall, those who are interested in getting started with a life settlement should take the above factors, and any others, into consideration. These tactics ensure that individuals can remain safe in the process and protect themselves against fraud.

Those who are older in age may find themselves needing funds for their retirement, medical bills, and more. While there are certainly many ways to secure funds, those who have exhausted their options may want to consider a final resort called a life settlement. A life settlement is a transaction where one sells their life insurance policy to a company and in turn, they receive more than the surrender value of the policy, but less than the death benefit. The value of one’s overall life insurance policy can vary depending upon a number of factors. To make the right decision, it is best to receive offers from multiple companies so that individuals can receive the most for their policy.

While there are many companies, this review would like to discuss Magna Life Settlements.

What Is Magna Life Settlements?

Magna Life Settlements is a life settlement company that claims to be “one of the largest life settlement providers in the industry.” Unlike many life settlement companies, Magna Life Settlements works directly with those selling their policies. In addition, the company also claims to work with investors as well. This could lead to competing interests and this factor is something that individuals who are interested in a life settlement should be aware of.

Further, those who visit Magna Life Settlement’s website will notice the formal tone of the website. Dissimilar from most life settlement companies, there are no images of smiling elderly individuals or other gimmicks. The website is clean, straightforward, and it may have some positive qualities as well that make it into a viable solution.

Strict Compliance With Regulatory Boards

One of the most interesting aspects of Magna Life Settlements is that its website focuses on the company’s compliance with regulatory bodies and it even names the organizations as well. For example, the company explains that it is a board member of organizations such as the Life Insurance Settlement Association (LISA), Institutional Longevity Markets Association (ILMA), and the International Security Markets for Life Insurance (BVZL).

Most of these organizations oversee the life settlement industry, they educate consumers, advisors, and professionals in the life settlement industry. It is possible to infer that because of Magna’s participation in these organizations, the company is likely a legitimate entity that truly does strive to perform its functions in a fair manner.

Highly-Educated Employees

Very few life settlement companies divulge the professionals in the business. In this case, Magna Life Settlements is very transparent. According to the company’s website, its business is comprised of 18 employees who have a century of combined industry experience. Additionally, those who work for the company have law degrees, MBA’s, insurance licenses, and a CLU and ChFC. These types of educational standards may suggest that the company truly strives to be in compliance with industry standards and to work for the benefit of both the policy holder and the investor.

It is also important to note that the company has been in the industry since 2004. In 2010 the company was acquired by Vida Capital Inc., an asset manager.

Magna Life Settlements Serves Three Entities

There are three different groups that Magna Life Settlements serves: policy owners, agents and professionals, and brokers. The company works to collect life settlement policies from various groups of people to add to its investment portfolio. Those who sell their life insurance policy to a life settlement company may find its end home to be Magna Life Settlements – and if anything, this company simply reflects the need of individuals to truly do their due diligence by questioning what will happen to their life settlement policy. As in, whether the life settlement company will keep the policy or sell it off to another entity such as Magna.

Magna Life Settlements For Policy Owners

Those who are policy owners can directly reach out to Magna Life Settlements to sell their insurance policy. When selling their policy, it is likely that they will receive more than the cash surrender value of their policy, but less than the death benefits. Here are the main features of a life settlement with Magna – albeit, very simplified:

Seller Receive Cash

In exchange for one’s life insurance policy, the policy holder receives a cash payment. While the company does not delve deep into this factor or the others, it is important to note that the receipt of cash payment can take time and it is possible that the funds will be held in escrow until it is completely verified that the policy has been transferred to the company. It really isn’t as quick or as easy as receiving a cash payment.

Buyer Pays All Future Premiums

Second, the company mentions that the buyer pays all of the policy’s future premiums. This is a promising feature because some companies refuse to pay the premiums. It is best to discuss this in depth with the company by questioning when their payment of premiums will start, how much of the premium they pay, and if the premium payments may somehow revert back to the policy owner.

The Buyer Receives The Death Benefit Upon The Death Of The Insured

Finally, once the insured passes away, the company will receive the death benefit. This means that the previous beneficiaries of the policy – such as family members, will not receive anything from the life insurance policies. As a result, it may be helpful to make provisions for loved ones regarding final life expenses. Also, keep in mind that the value that one receives for their life insurance policy may be significantly less than the death benefit – therefore, one is giving up funds by entering into this transaction.

This is the process highlighted on the company’s website and as mentioned, it certainly is a simplified version. For example, the actual initial step in the process is assessing whether one is even eligible for a life settlement with the company. If one is eligible, the company will continue to assess the value of the policy, it will provide an offer, and only upon acceptance of the offer, will the transaction take place. As individuals can tell, there are many stages before the seller actually receives cash for their policy.

Online Application And Medical Pre-Screen

To help facilitate the process, the company offers an online application and medical pre-screen resource on its website as well. The application is fairly simple and it requires one to provide information such as their name, date of birth, address, contact number, insurance company, policy number, whether it is a group or individual policy, the type of policy, and the reason that one is considering a life settlement by selling their policy. The application is straightforward and upon completion, individuals are prompted to submit the application to the company – the email is on the application form.

The second available form is the medical questionnaire. The questionnaire further asks for personal information and it also questions whether one is a smoker, whether one consumes alcohol, whether there are any health conditions, and if one had surgery recently or in the past. Just to provide some insight – it is best to be as honest as possible in answering these questions. Life settlement companies are often looking for individuals who have a short life expectancy because it means that they’ll receive a faster return on their investment and they may also need to expend less on premiums. Thus, if one truly is ill or drinks or smokes, then mention it in the application. Doing so may increase the value of one’s life insurance policy to the purchaser.

Finally, after exhausting the first two steps, individuals can also request a medical interview by filing out another form as well. The medical interview is not a common practice among life settlement companies – but it may just be that here, the company is looking to fully assess an individual’s health and to ensure that it is a worthwhile approach for them.

Magna Life Settlements Licensing

One of the most important qualities to look for in a life settlement is that the company is licensed. Magna mentions on its website that it is “expected to be licensed during this calendar year” in Delaware. Meaning, the company is not yet licensed in states that require licensing. Therefore, it is best to wait until the company receives its license so that individuals can ensure that the transaction is compliant with state and federal laws.

The good news is that it is licensed in the states that do require licensure. For example, those who visit the brand’s website can view a chart of all of the states where it has a license. Further, the company is able to do business in 40 states. Those who live in California and New Hampshire and who do transact with Magna Life Settlements or any other life settlement company should be aware that the company is legally required to inform policy holders that they should consult a licensed insurance or a financial advisor is considering to sell their life insurance policy. These steps safeguard one’s interests and ensure that one is protected.

The Factors Magna Life Settlements Considers For Eligibility

As previously mentioned, not everyone is eligible for a life settlement and there are a number of factors that the company considers in assessing eligibility. In this case, here ae the main factors that Magna Life Settlements takes a look at:

• Age
• Health Status
• Type of Insurance
• Death Benefit – the face amount of the policy
• Policy premiums
• Date of issue
• Type of ownership
• Carrier

These factors vary from person and not everyone qualifies. But, for those who do qualify, it is important to safeguard one’s interests by being as diligent as possible. For example, individuals are encouraged to do their research, to assess their options, and to fully determine whether a life settlement is right for them.

Pre-Qualify A Policy

Individuals can pre-qualify a policy as well. The pre-qualification as well enables individuals to perhaps speed up the process if that they are certain that Magna Life Settlements is right for them. This process entails entering in one’s personal information into the pre-qualification form, their age, gender, health, and information about their policy. Upon being pre-qualified, users will receive call from an agent so that they can continue with the steps. While pre-qualification is certainly a good option for those who are looking to receive a life settlement quickly, it is still recommended that individuals check out their other options with various life settlement companies. In doing so, individuals enhance their chances that they’ll receive a fair rate for their policy.

The Benefits Of Magna Life Settlements

There are a number of benefits to be had when one chooses Life Settlements. While these are certainly not determinative factors for choosing this company, they certainly may help one who is assessing their options and who wants to make the right decision:

Compliant With Licensing And Industry Regulations

First, those who visit the company’s website will find that it adheres to compliance in terms of licensing and industry regulations. These features suggest that it is a reputable company to work with. Very few companies are as upfront as this one when it comes to compliance.

No Frills

Second, the company’s website is largely devoid of frills and while it may be because the company is also catering to investors, it also suggests that it is in the business of providing service and care to those who it works with – including sellers.

Licensed

Finally, the fact that Magna Life Settlements is licensed, it provides information on its licensing, and it is compliant in nearly all states, but one, does help one feel confident that it is a positive company to work with.

Magna Life Settlements Summary

Ultimately, those who are interested in getting started with Magna Life Settlements can do so by visiting the company’s website and contacting one its of agents. The contact information is on the website and individuals can fill out the necessary forms as well to get started. Keep in mind that this is just one company out of the many potential options on the market, therefore it is best to get an offer from here and to also receive offers from other businesses as well so that one can pick the best one.

Getting older can be tough, especially if one is unprepared for the expenses that come with retirement. Those who retire may find themselves inundated with medical costs, living expenses, and other necessities that require a great deal of funds to keep them going for the coming years. If one has exhausted their options, they may want to consider another options if they have an existing life insurance policy. The solution is called a life settlement and it entails selling one’s life insurance policy for more than the surrender value, but less than the death benefit.

With so many life settlement companies on the market though, it can be difficult to find one that is a reputable and quality option. That being said, this review would like to introduce BecoLife Life Settlements. This company enables individuals to potentially receive a good deal for their insurance policy.

What Is Beco Life Life Settlements?

BecoLife Life Settlement is a life settlement company that purchases insurance policies directly from the life insurance policy holder. Dissimilar from some companies on the market, this one does not act as a broker or a third-party, but is a direct part of the transaction. The company describes life settlements, its process, but very little about itself. Most life settlement companies express how long they’ve been in the life settlement industry, a bit about their professionals, and other pertinent factors. While BecoLife Settlements is not very descriptive regarding its background, perhaps it does have other redeeming qualities that may indicate that it is the right option for men and women who are looking for a life settlement.

Beco Life Life Settlements Licensing

One of the most important qualities to determine about a company is its licensing. Many states regulate life settlements and viatical settlements so as to protect those who are selling their policies. Unfortunately, unlike some life settlement companies, BecoLife does not make the need for licensing very clear for individuals who visit its website. To learn about licensing, it seems that individuals need to know that licensing is necessary and to actually delve into the website to learn about what the company has to say.

In this case, BecoLife features its licensing statement in the Terms and Conditions and it does not provide many details either. The company states that it is not licensed in all states – although, it does not refer to which states it is not licensed in.

Additionally, the company mentions that the website site “is not currently approved by the State Insurance Commissioner of Oklahoma or Texas.” And “this web site does not apply to variable settlements.” Oddly enough is that there is no such thing as a “variable life settlement.” – although, there is variable life insurance. Therefore, there are two possibilities. Either the company means that it does not work with individuals who have a variable life insurance policy. Or, most likely, the company means that the website does not apply to viatical life settlements – and if so, then this is disconcerting because the company advertises viatical life settlements on its main page. The best thing to do is to contact the company and to discuss the issue with it if one is interested in going forward with a life settlement policy.

Potential Tax Issues

A life settlement may have tax implications, as BecoLife points out. Although, the company does not go into detail concerning the tax implication. The company simply recommends that individuals consult with a professional tax advisor. Those who consult with an individual tax advisor may be in a better position concerning the tax implications of a life settlement. Keep in mind that there are not always tax implications and they may vary from state to state as well. Further, prior to going through with the transaction, it is helpful to consider the impact of the sale upon one’s estate and the like.

Why Choose Beco Life Life Settlements

There are many life settlement companies to choose from, which means that it is best to be careful in terms of the company that one chooses. In this case, BecoLife identifies a number of elements that make it a quality life settlement company to choose from. Here are the main features of BecoLife that may make it the right option for many:

A Trusted Solution For 1000 Of Individuals

First, BecoLife mentions that it is a trusted solution for 1000s of individuals. However, it does not highlight any information to support this and it does not mention how many individuals it services or per. Those who are interested in this company may want to ask for supporting statements to ensure that they are making the right solution for their needs.

Fully-Regulated And Safe

Second, the company states that it is fully-regulated and safe. However, as discussed previously, it does not provide much insight on its website concerning the states that it is regulated in and its position on viatical settlements. Again, this mean that individuals may be better off if they discuss its licensing and compliance with the licensing requirements if it decides to contact the company.

Maximizes A Cash Payout

Finally, BecoLife declares that it is able to maximize one’s cash payment. While this may very well be true, it is best that individuals reach out to various life settlement companies so that they can receive multiple offers and then compare which one is best for them. A life settlement can have serious financial implications in the present and the future, therefore, it is best to rely upon oneself to get as many offers as possible and to choose one that works best for them.

Clearly, there are a number of positive qualities concerning BecoLife, but again, doing one’s own due diligence is the best step that a person can take for both the present and the future.

The Benefits Of A Life Settlement With Beco Life

According to BecoLife, there are a number of benefits to be had concerning opting for a life settlement through it. Here are the main advantages of a life settlement so that individuals know what to expect:

Money Back From Past Premiums

A life insurance policy lapses when individuals miss a premium payment. It is best to continue making premium payments if one wants to keep their policy. Those who have trouble making premium payments could take out a loan or consult with friends and family about helping with the payments.

Give Gifts To Family

BecoLife mentions that with a life settlement, individuals may be able to give gifts to family. However, if this is one of the only reasons for a life settlement, then it is a poor one. A life insurance policy can provide family members with more support after a loved one’s passing, while gifts in the present may do much less.

Fund Assistance

More pertinent is the potential for fund assistance with a life settlement if one needs such assistance. Those who are struggling to fund their retirement and who have no other options may want to consider a life settlement. A life settlement can help with living assistance, home health care, and assisted living if one needs these options for a comfortable quality of life.

No More Monthly Premiums

Lastly, those who choose a life settlement may be able to avoid paying premium payments. As previously mentioned, those who can continue making premium payments. However, those who are having issues may want to consider a life settlement. The company that takes over the policy may continue making the premium payments so that individuals do not need to worry about them.

These qualities may provide individuals with some relief when they choose a life settlement. The life settlement process is intense and the competition is fierce. Therefore, many companies may implement certain tactics to generate business. However, to protect one’s interests, it is best to conduct one’s own research and to ensure that the life settlement is specifically right for them.

Eligibility Requirements For A Life Settlement with Beco Life

To qualify for a life settlement, individuals need to meet the company’s eligibility requirements. Different life settlement companies have their own eligibility requirements and understanding what they are can ensure that individuals are on the right track. In this case, BecoLife indicates that these are a number of eligibility requirements for its life settlement, which are as follows:

• The terms of the existing life insurance policy
• The payout benefit
• The length of time the policy has been active
• The age and health of the policy holder
• The number of investors in the market

These are just a few of the many factors that the company may consider in determining one’s eligibility. Further, the company does not go into detail like other companies do. For example, most companies explain that age 65 is the minimum age of the policy holder that it will consider and that the policy must be valued at $100,000 or more. It looks like when it comes to BecoLife, individuals need to actually contact the company for more information concerning eligibility.

Further, it is important to keep in mind that the policies that receive the highest life settlement are those where the individual has a short life expectancy and the policy has a high value because the life settlement company wants to reap the death benefit sooner rather than later due to the premium payments.

Confidentiality Concerning Personal Information

Most people tend to overlook this issue – but those who go through a life settlement transaction often need to provide a great deal of personal information. As a result, it is imperative to consider the privacy standards the company has in place to protect one’s personal information.

When it comes to BecoLife, the company mentions that “privacy and data security are of the utmost importance.” The information that one provides is safe and the details of the insurance policy are kept anonymous. Further, investors that are interested in the policy only receive personal information with the consent of the individual policy holder. More information concerning the company’s confidentiality may be available in the privacy policy. Therefore, those who are interested in more insight should go through the privacy policy and they may want to inquire with the company concerning its policies.

The Time Frame Of The Process

The process for acquiring a life settlement varies about the time frame of the policy. According to BecoLife, the process may take anywhere from 6 weeks to 3 months. It is important to understand that a life settlement is a significant decision and as such, individuals may not want to rush through the process. Instead, those who take the time to conduct research, to learn about their options, to verify companies, their licensing, and practices, and the implications of a life settlement may be able to receive the best outcome from their efforts.

The BecoLife Instant Estimate Tool

While the process for acquiring a life settlement may take a number of months, however, receiving a quote can take two minutes. Take note that the quote is not an offer, but simply an instant estimate about the amount that one may be able to receive if they go through the life settlement process. To receive the instant estimate, individuals should visit the brand’s website and go to the Instant Estimate link. There, individuals should provide information such as their name, email address, phone number, health status, and the benefits payout. Afterwards, individuals will receive the estimate so that they can see how much they may receive.

Customer Service

As previously mentioned, a life settlement is a serious option and therefore, individuals may have a number of questions. The good news is that to facilitate the inquiry process and to provide guidance, BecoLife has a chat tool on its website. The chat tool enables interested individuals to discuss general information concerning a life settlement with a trained and intelligent agent. However, discussing a life settlement with an agent does not obligate one to go through the life settlement process – individuals can reap the most out of the process by simply getting the general insight they need and doing what is right for them.

Viatical Settlements

BecoLife also offers viatical settlements. According to BecoLife, a viatical settlement is distinct from a life settlement. While life settlements are for those who have a traditional life expectancy, a viatical settlement is for those who are terminally ill and who have an insurance policy in place. Viatical settlements can be a precarious solution if individuals are not completely certain that it is the right option for them. Chances are, family members will be able to handle funeral costs and medical bills by simply waiting for the death benefit to take place, rather than opting for a viatical settlement. Therefore, those who are interested in a viatical settlement should only undertake the option if there are no other solutions out there.

Beco Life Life Settlements Summary

Ultimately, those who are interested in a life settlement may want to consider BecoLife as a potential option. Of course, before actually agreeing to a life settlement, it is best to do one’s own due diligence and to contact multiple companies to ensure that one is getting the best deal. Further, one should also take note of other considerations such as tax implications, privacy policies, and licensing into consideration before going through with the process. Those who do so are in a much better position and may be able to adequately protect themselves when they receive their life settlement.

There are many different ways to care for one’s future, particularly in older age. However, those who have exhausted most of their options and are looking to use one of their potential assets as a way to garner more funds may want to consider a life settlement policy. For those who are unaware a life settlement is a transaction whereby a life insurance policy is sold for more than the surrender value, but less than the death benefit. These days, the competition between life settlement companies is tough, meaning that many company may use pressure tactics, poor information, and other methods to secure one’s business.

Therefore, the best way to protect oneself is to use a company that can be trusted and counted on. With that, this review would like to introduce a potential option called Life Settlement Solutions (also known as LSS, for short).

What is Life Settlement Solutions?

Life Settlement Solutions is a life settlement company that functions as a brokerage – that is, it is not a party that will directly purchase life insurance policies. The company mentions that it is a “leader in the life settlement industry” – like most companies claim they are. Regardless, this company works to ensure that the transaction is equitable for all parties involved, including the insurance policy seller, the broker, and the buyer. By using the right standards for life settlements, parties can get the benefits from the transaction that they deserve.

Life Settlement Solutions Licensing

One of the most important qualities to look at before choosing a life settlement company is its licensing. All too often, individuals find themselves transacting business with a company that is not licensed in their state, thereby leading to a precarious and undesirable situation. Rather than put oneself at risk, the best thing to do is to verify licensing first.

In this case, Life Settlement Solutions is not licensed in all 50 states. Rather, there are a number of states that the company is not licensed in, which include Alaska, Hawaii, Idaho, Kentucky, Minnesota, Montana, Nebraska, New Hampshire, North Dakota, Utah, Vermont, West Virginia. Further, keep in mind that these are the states that the company is licensed to transact life settlements. Some states have special regulations and licensing requirements for viatical settlements as well, which this company may not perform – at least, according to its website.

The Purpose Of The Brokerage

There is a difference between selling a life insurance policy directly to a company or through a brokerage. A brokerage functions as a sort of “middle man” – it helps facilitate the transaction between the life settlement company and the individual insurance holder. Further, very different from most other companies, Life Settlement Solutions mentions that “it does not employ brokers, and no broker is authorized to act as an agent or representative of Life Settlement Solutions.” This could very well mean that the company provides brokers with the tools and resources that they need and then purchases the policies when the brokers have ones that they can offer.

Further, another important aspect to be aware of is that Life Settlement Solutions mentions that it does “not sell or re-sell life insurance policies to individual members or settlement purchasers.” Rather, the policies are acquired by the company and then they could be transferred to a custodial trustee for a financial institution that has been pre-qualified as an accredited investor. This means that Life Settlement Solutions bundles the policies up, turning them into death bonds, and quick makes them into a security. The company then sells them to an accredited investment companies that are accredited under the SEC and that meet the Federal Securities Act of 1933.

Those who transact with Life Settlement Corp should look at the privacy policy to discern what happens to personal information once the policy is transferred to an institutional investor. This way, users can protect themselves and their information best.

Overview Of The Transaction

Rather than state that the company “purchases” or “buys” policies, Life Settlement Solutions states that it is “structured to acquire.” While acquire could mean purchase or buy, the company does not use these words and therefore it could be that the company simply acquires the policy through acting as a middle man type of service. Here is an apt analysis of the company’s policy transaction overview that may help individuals determine whether this company and its practices are right for them:

Locating An Eligible Policy

First, the company locates an eligible insurance policy. Various life settlement companies have criteria that policy holders must meet in order to ensure that their policy is eligible to be sold. For example, a few of the criteria that the company analyzes are the individual’s age, health, life expectancy, the source of the insurance policy, the value of the insurance policy, and the type of insurance policy. Once it is found that the individual meets the company’s criteria, the next step occurs.

Determination Of Bid Price

Second, if the pricing of the policy and the evaluations go well, the company will determine a bid price that may work well for investors. The policy must meet the company’s capital funding sources. Once all of these elements are met, the offer is send to the individual policy holder.

Accept Or Decline The Offer

Third, after the offer is sent to the individual, they have the ability to decline or accept the offer. If the offer is accepted, the owner will then need to go through the step to relinquish ownership and the beneficiary’s interest in the policy. In exchange, the policy holder receives a cash payment that has been held in escrow upon acceptance of the bed.

The Death Benefit

Finally, upon the death of the policy holder, the death benefit is given to the company that invested in the policy. The amount derived from the policy is termed the “yield” in the industry and it provides the investor with a profit. At this point, the family of the original policy owner have no interest in the yield.

These are the main features of the transaction that takes place between the policy owner, the company, and investors. Throughout the process and as individuals will notice on the company’s website – the company is not very clear about its role in the process. It certainly does not directly purchase the policies, but rather, it “acquires” the policies. It is likely that the companies acquires those policies from brokers and then holds onto them for institutional investors.

For instance, as the company mentions, “the company purchases life settlements on behalf of several European-based institutional investment funds.” Therefore, Life Settlement Corp does not directly receive the death benefit of any policies that it acquires, but rather, sells to them institutional investors as securities so that they may derive a yield on their investment.

The Treatment Of Non-Public And Personal Information

At this point, it is possible to discern that Life Settlement Corp is a third-party dealer in the life settlement transaction. Meaning, this is the company that acquires the policies from brokers or other corporations. As a result, it is important to recognize how the company will treat one’s personal information. After all, there are some companies that will divulge and use personal information to their benefit, which can be worrisome.

In this case, Life Settlement Corporation mentions that it is in compliance with the Gramm-Leach-Bliley Act. This Act identifies the procedures and policies that a company must use in treatment and handling an individual’s personal information.

The Type Of Information The Company Receives

Life Settlement Solutions typically receives identifying information, such as a name, address, email addresses, social security numbers, license numbers. In addition, policy information includes medical and health information, life expectancy evaluations, personal policy information, and the like.

What The Company Does With The Information

The company mentions that it collects the information to determine whether the policy is viable to acquire. Importantly, the company states that it “does not sell any of the nonpublic personal information regarding the policy owner or insured individual, nor does it distribute such information to any third parties except as required or permitted by law.” Keep in mind that this statement is dependent upon the term “nonpublic personal information.” For example, if one’s address, phone number, name, and other personal information does not fall under the definition of “nonpublic personal information,” then the company may disseminate it.

Access To The Information

Access to the nonpublic personal information is given to the company’s employees to facilitate the transaction. In addition, it may also be given to unaffiliated companies but only to the extent necessary to conduct business with the company and to ensure that the transaction is completed in a timely manner.

Life Settlement Solutions Summary

Overall, Life Settlement Solutions provides very little information, some of it conflicting, concerning its role in the Life Settlement Transaction. What is certain is that the company does acquire the policies, either through a broker or by other means, to sell to institutional investors for securities purposes. On the other hand, the benefit of this company is that it does seem to secure the information and keep it confidential. By understanding the various parties in the transaction, individuals can make better decisions for their funds and their life settlement.

Those who are near retirement age may find themselves struggling to determine whether they’re set for the years to come. Due to the market crash in 2008, most older individuals are short on funds, meaning that they need to find other options to raise the money they need to live comfortably and in a worry-free manner. Those who have exhausted all other options may want to consider a life settlement – and in some cases, known as a vitatical settlement. This is a transaction that takes place in the secondary insurance market, whereby a life insurance policy holder sells his or her policy to a life insurance company for more than the surrender value, but less than the death benefit.

There are many life settlement companies on the market, which means that individuals should take care when assessing their options to determine what is right for them. With that, this review would like to introduce Vitaical.Org Settlements.

What Is Viatical Settlements

Viatical.Org Settlements is a life settlement companies that “strives to be the quality resource for information about vitatical settlements and life settlements if you are contemplating selling your insurance policy for a lump sum of cash.” The company conducts transactions for both vitatical settlements and life settlements and understanding the difference between the two can be integral in ensuring that one gets the most out of their policy. Viatical.Org has been in business for over 20 years, meaning that it may have the expertise available to ensure that the process is simple, effective, and that it leaves individuals in a positive position.

Further, dissimilar form many life settlement companies, this one recommends that individuals also consult an independent third-party to ensure that a life settlement is a step in the right direction.

The Difference Between Viatical Settlements And Life Settlements

As previously mentioned, understanding the difference between a vitatical settlement and a life settlement can be integral to ensuring that one is making a sound decision. While some companies use the two terms interchangeably, there is a significant difference. A life settlement is a transaction that is normally conducted with a policy holder who does not have a terminal illness or condition that can cause them to pass away within a short period of time. On the other hand, a vitatical settlement is conducted with an individual who is terminally ill.

Between the two, a life settlement is the more reasonable approach when there are no other options available for accumulating funds. A vitatical settlement seems only necessary if immediate funds are a must because most of the terminally ill individual’s family members will receive the funds from the insurance policy upon their passing, which is likely to be a short period of time anyways. Therefore, those who are interested in a vitatical settlement should only choose the option if they need funds immediately and cannot wait for the death benefit.

Another issue with vitatical settlements is that an individual’s ability to consent to the transaction may be impaired due to their terminal illness. If an individual does not knowingly and intelligibly consent, then the contract may be void – the same applies to a life settlement.

Eligibility With Viatical.Org

In order to receive a life settlement, one needs to be eligible. Most life settlement companies have their own criteria that they use to assess eligibility, therefore it is important to review each of one’s options to determine if they qualify. Here are the main criteria that Viatical.Org uses for its life settlement process:

Over The Age Of 65

First, the policy holder must be over the age of 65. The reason that the company only deals with older individuals is the life expectancy. Companies make the most profit when the life expectancy of the policy holder is shorter, rather than longer.

An Existing Policy

Second, those who are interested in selling their life insurance policy must have an existing policy on hand and the policy needs to be of value. While Viatical.Org does not specific the specific value that it prefers in its policies, the general amount is over $100,000. However, there are companies that will buy policies that are below that amount.

The Type Of Policy

Third, Viatical.Org will also assess the type of policy that one is trying to sell. Some companies only purchase certain life insurance policies – therefore, it is best to discern what type of policy one has and to determine whether Viatical.Org will be able to purchase it.

Speak With A Representative

Finally, the best way to learn about the rest of the eligibility requirements that Viatical.Org has is to speak with a representative. A representative will be able to provide the full picture in terms of eligibility so that individuals who are interested in selling their life insurance policy are taking the right steps for their needs.

Clearly, the eligibility requirements conform to what most other life settlement companies will look at. Keep in mind that while Viatical.Org may be the right company to work with, it is also important to work with other companies so that one can receive a number of offers. The more offers that one gets – the greater opportunity one has to receive a good offer.

When To Explore A Life Settlement With Viatical.Org

A life settlement is a serious decision that isn’t suitable for everyone. Viatical.Org identifies a number of reasons to explore individuals may want to choose a life settlement with it. Here are just a few reasons Life Settlements may be the right option:

Older In Age And In Need Of Funds

One of the first signs as to whether a life settlement is an appropriate option is that one is older in age and in need of funds. There are many different ways to generate funds in older age, aside from a life settlement. Therefore, a life settlement option should be undertaken if all other options are exhausted – particularly because a life settlement deprives one’s intended beneficiaries from receiving funds at the time they choose the settlement. Further, due to the conditions of a life settlement, an individual often receives less than the death benefit of the policy.

Premium Payments Are Crippling

Second, those who have to deal with crippling insurance policy payments may want to simply cash out their policy for a life settlement. This opportunity means that the purchasing company will be responsible for the premium payments. Keep in mind that premium payments are an issue if there is no other way to handle them.

Tax Implications

Finally, while Viatical.Org does not identify the tax implications of selling a life insurance policy – there may very well be tax implications. Therefore, those who are interested in a life settlement may want to consult a financial planner or a tax specialist to ensure that they are making the right decision. By understanding the tax implications and all other outcomes of selling the policy, individuals can safeguard that they are taking the right steps for their policy.

A life settlement is a serious decision, which requires individuals to look at every facet of the transaction and all of the outcomes that may be involved.

Licensing And Regulation Compliance

There are many life settlement companies on the market and not all of them meet state licensing and regulatory requirements. Those who are interested in going through the life settlement process with Viatical.Org should ensure that the company is licensed in their state.

Unfortunately, Viatical.Org does not delve into the states that it is licensed in and the regulations that it follows to ensure that it is facilitating the life settlement process in the right way. Thus, those who are interested in undergoing through a life settlement with Viatical.Org should first discuss whether the company is licensed. Further, while there are licensing requirements for life settlements in various states, there are also licensing requirements for vitatical settlements as well. Additionally, there are some states that require the company to recommend to interested individuals that they should consult with an independent third-party attorney or financial planner before going through with the transaction.

Case Studies

To provide individuals with insight into the potential outcome of the transaction that they conduct with Viatical.Org, the company also has a page dedicated to case studies. The case studies apply both to life settlements and vitatical settlements so that individuals can see just how much they may be able to potentially receive. It is important to note that the case studies reflected on the company’s page are claimed to be real and that the case studies on file.

Thus, those who are looking to learn more about a particular case study and its validity can contact the brand and ask for the case study on file. This way, individuals can make sure that the information provided is true and legitimate and that it truly does show what the individual may be able to receive.

Unique Feature: Life Insurance Loan Or Advance

A very interesting feature of this company is that it offers individuals to get a life insurance loan or advance. According to the company, the life insurance loan “offers policy holders a unique opportunity to get cash from their life insurance policy right away to cover medical expenses, unexpected expenses, or even traveling with family and friends.” Take note that while it does not state it on the website, it is very likely that the loan operates like a traditional loan, meaning that interest may be involved – perhaps even a high interest rate. Therefore, those who are interested in the loan option should verify with the company what the conditions are the loan are.

As the brand explains, there are a number of advantages to securing a life insurance loan for purposes of a life settlement:

• All types of policies qualify
• Those who have a recent issue with their health qualify
• No out-of-pocket costs
• No insurance premium payments
• Entire coast of the loan is paid from the death benefit
• Credit score is not a consideration
• The insurance premiums are paid by the loan company

Those who are interested in a life insurance loan should deeply consider whether it is a sound decision. Further, there may be other conditions to be aware of, which are important to discuss with the company.

Viatical.Org Blog

There are many different ways to determine the quality of the company and its position concerning life settlements and vitatical settlements. One of the best methods is to look at the company’s blog and the frequency in which it posts updates. In Viatical.Org’s case, the company regularly updates its blog and it does so with pertinent issues to the life settlement industries and fort hose who are interested in choosing a life settlement.

For example, the company recently posted an article indicating that Florida recently added regulations for life settlement companies. Life settlement companies must provide life insurance policy owners with certain information when they are seeking a life settlement. That being said, before transacting with any life settlement company, it is imperative to heck the regulations in one’s state. This way, individuals can ensure that they are privy to the right information and that the transaction is conducted in a legitimate manner.

Immediate Appraisal

There are a number of steps that one must undergone through the life settlement process, but one of the initial ones is to get an appraisal. To conduct the appraisal process, the company recommends contacting them through the phone number on the page or to fill out the online form. Those who do so can get a quick appraisal so that they can determine whether the life settlement is a good option for them. Further, it is important to note that the appraisal is not an offer, but a quote. For a full offer, individuals should speak to one of the company’s specialists and go through the step-by-step process.

Vitatical Summary

Ultimately, a life settlement is a serious decision because it deprives the beneficiary from receiving the death benefit of the settlement. The death benefit can be crucial in helping to pay medical bills and funeral costs. Therefore, one should truly consider whether a life settlement is the right option. To learn more about a life settlement with Viatical.Org, it is best to visit the company’s website.