Being of retirement age can be a daunting experience for those who have not prepared enough financially. Those who are in need of funds and are looking for a lump sum payout may be able to sell an existing life insurance policy. The transaction, known as a life settlement, means that one receives more than the surrender value, but less than the death benefit of their policy. Choosing the right life settlement to work with can make all the difference in the funds that one receives for their policy and it can alleviate privacy concerns as well.
With that, this review would like to introduce a life settlement company called Welcome Funds Life Settlement Brokers. This review provides insight into the company so that one can make a sound decision for their needs.
What Is Welcome Funds Life Settlement Brokers?
Welcome Funds Life Settlement Brokers is a life settlement company that has been in business since 2000. There are two forms of life settlement companies – those who directly purchase the life insurance policy, and those who broker between the policy holder and investors or other life settlement companies. In this case, Welcome Funds Life Settlement Brokers fall into the latter category. Meaning, the company does not directly purchase the policy, but is the “middle man” so to say, in the transaction.
The goal of this company, as it explains on its website, “is simple – to help you understand your options and to give you the confidence to make the best decision for you and your family.” The company also explains that it works to ensure that individuals receive the highest payout possible for their policy.
That being said, it is important to keep in mind that there are many life settlement brokers on the market and competition is fierce. Therefore, performing due diligence and looking into many brokers and their offers is the best way to procure a good deal for one’s life insurance policy.
Welcome Funds’ Responsibility As A Broker
Welcome Funds makes it clear from the onset that it is a broker for life settlement policies. As a broker, it has a number of responsibilities in the transaction, and they are delineated as follows:
Connecting Life Insurance Holders To Top Life Settlement Buyers In The Secondary Market
The primary market is where individuals purchase their life insurance policies, while the secondary market is one where those policies can be sold for a life settlement. In this case, Welcome Funds works in the secondary market to connect life insurance holders to life settlement buyers. As the company mentions, it aims to introduce one’s life insurance policy to as many life insurance purchasers as possible so as to receive the best offer.
Ensure Fair Market Value
The company also mentions that it works to ensure that individuals receive a fair market value for their funds using its database of over 10,000 life settlement offers. This way, the company can compare past offers to one’s current policy to ensure that the numbers are in the same range. Further, the company’s extensive experience as a life settlement broker may enable it to maximize the value of one’s policy during the negotiation process.
Negotiations To Look Out For The Best Interest Of The Client
The negotiation process between life settlement companies and a broker can be intense, which means that the most experienced negotiators may be able to receive the best deal. As the brand explains, its negotiators have a combined 40 years of experience in the market and they are fully aware of the buyers, the industry, and they also work tirelessly on the client’s behalf.
Around For Clients From Start To Finish
Finally, the company mentions that it is around for clients “from start to finish.” The process of procuring a life settlement can be long, detailed, and extensive. By having a broker to help through the process, it can be much easier.
As individuals can tell, there is a difference between working with a broker and directly with a life settlement company. Those who with a broker have a “middle man” that can provide them insight and direction through the process and they may be able to connect them with a right life settlement company that offers the best deal.
Keep in mind that while Welcome Funds is a brokerage, it may also receive commission on the deal. Therefore, by recognizing that the broker has an interest as well, one can ensure that they are making the right decision for their life settlement needs. Further, it is important to also recognize that one should not be rushed through the process – take the time to research, check out different offers, and to determine that one’s interests are adequately being protected.
Licensing And State Regulations
The majority of states require brokerages and life settlement companies to be licensed before transacting with potential clients. The laws and regulations have become more serious in recent years to ensure that those who do purchase life settlements are well protect.
According to the company, it is licensed in 45 states. The five states where it is not licensed do not have specific regulations concerning licensing – which include Wyoming, South Dakota, Montana, Alabama, and South Carolina. The map explaining all this information as updated in 2014 and regulations may have changed in those states since then. Therefore, if one lives in one of the unlicensed states mentioned herein, then it is best to discuss with the company whether there are any licensing requirements as of today.
Meeting Life Settlement Eligibility Requirements With Welcome Funds
There are a number of eligibility requirements that one must meet to qualify for a life settlement. While the qualifications may vary from company to company, they are generally similar in many respects as well. For example, here are a few of the main qualities that Welcome Funds will assess to determine whether one is eligible for a life settlement:
The Life Insurance Policy
First, the company will look at one’s life insurance policy. For example, the policy must have a face value of $50,000 or more – note that this is less than most companies require; the average is $100,000 minimum. In addition, the policy must be transferable, the sale must be allowed by the policy holder’s original contract, and there should be joint survivorship or second to die policies. It is also important to recognize that policies that are non-convertible can only be sold under limited circumstances.
Insured’s Health Status
Second, the company will assess the health status of the insured. For life settlement companies and investors, it is always preferable for the insured to have a poor health status – this way, they receive the death benefit faster and may not need to pay premiums for a prolonged period of time. A few of the health status elements that the company will look at include a life expectancy of under 15 years, chronic health conditions, and the like.
In assessing the life insurance policy and the health status of the insured, Welcome Funds mentions that “all records are kept confidential and only released at the authorization of the insured.” While the website does state this, it is best to make sure that this is part of the contract with the company or the privacy policy states this. This way, individuals are best protected. Many life insurance companies tend to compromise one’s personal information with their affiliates and non-affiliates, which can be detrimental.
When A Life Settlement Is Not A Good Option
Those who go through Welcome Funds’ website will notice a number of commendable qualities. For example, very much different from most other life settlement company websites, this one identifies when a life settlement is not the best option. Most life settlement companies will not dissuade individuals looking for a potential life settlement from going through the process. Here is when a life settlement is not appropriate, according to Welcome Funds:
Continuing Need For Insurance Coverage In The Future
First, those who have a continuing need for life insurance in the future may not want to go through with a life settlement. A life settlement will prevent one’s loved ones from tapping into the life insurance policy for help with medical bills or other things.
Paying The Premiums
Second, those who can afford to pay the premiums or who can secure a loan to pay the premiums may not want to continue with a life settlement policy. Getting rid of premium payments is one of the primary reasons that individuals choose a life settlement. Fortunately, those who can continue paying the premiums without issues may not need to choose a life settlement.
Additionally, Welcome Funds mentions that it encourages individuals to “week consultation from a financial advisor or CPA who can provide personal advice based on your financial status and goals.” There are also a number of states, as per regulations, that require the company to tell those interested in life settlements to seek outside advice as well from an attorney or a CPA. The company, in this case, has a number of non-affiliated advisors that it can recommend to verify whether a life settlement is the right decision.
The Process of A Life Settlement
As previously mentioned, the process of generating a life settlement can be extensive, detailed, and daunting – especially with all of the paperwork. Nonetheless, it is imperative to take one’s time and to go through the process without any pressure – this way, individuals can ensure that they are making the right decision for their needs. Here is the process as explained by Welcome Funds:
The Quick Online Qualifier To Determine Eligibility
The company has a quick qualifier tool for individuals who want to determine their eligibility quickly. After going through the questionnaire on the website, a client care advocate may reach out and provide a free appraisal so that individuals have a good sense of what they can expect when they go through Welcome Funds.
Review Disclosures And Complete A Formal Application
The company then sends disclosures so that individuals can be completely informed about the process, what it entails, how the brokerage process works. Further, the company will send a formal application individuals need to fill out truthfully and to the best of their knowledge. If there is an issue with the application, one can contact the company for help.
Case Submission To The National Buyer Network And Offers Generated
Next, after the application is complete, the company will submit the application to the National Buyer Network. The network will provide offers for the individual to accept or decline. During submission, the company also works to negotiate the best deal so that individuals can be satisfied with the amount that they receive.
Acceptance, Declines, Closing Documents
Afterwards, individuals can either accept or decline an offer. Once an offer is accepted, the closing documents will be sent to the individual to fill out. The closing documents are detailed, so it is best to go through them carefully.
Transfer Of Ownership And Beneficiary Rights And Release Of Funds
Finally, the last steps are to transfer ownership, beneficiary rights, and the company will release the funds that are due to the policy holder. The company also verifies all of the information to ensure that it is accurate and legitimate so that there are no issues alter on.
Another advantage of this process when working with Welcome Funds is that the process is completely confidential. All information is released when the individual provides the company with authorization to release it. Keep in mind that during this stage, it is important to verify that the company will not release information to non-affiliated parties. This way, individuals can ensure that their information is secure.
Tax Information
Another issue that Welcome Funds provides to individuals, and that most companies do not provide, is that there may tax implications to receiving a life settlement. For example, the money that one receives from a life settlement may be considered income and therefore, taxable. This does not apply in every scenario – but it is common enough to discuss. To learn more about the tax implications of a life settlement policy, the IRS has a multitude of information on its website.
The Benefits Of A Life Settlement With Welcome Funds
There are a number of reasons to choosing a life settlement with welcome funds. Here are the main qualities that set this company apart from other parties so that individuals can discern that they are making a sound decision for their needs:
- Transparent
- Provides an abundance of information
- Brokers the deal between the policy holder and the life settlement company
- Free life settlement quote
- Potentially provides a great deal of confidentiality to the policy holder
- An informative and detailed website
- Works for the interests of the client
With these qualities, those who choose Welcome Funds can feel more confident that they are making the right decision for their needs. Further, the company complies with state regulations and compliance requirements.
The National Buyer Network
As previously mentioned, this company works with the National Buyer Network. The network is a database of all of the companies that Welcome Funds is connected with. In addition, the network makes it easier to maintain consistency, it helps the company generate better deals for its clients, and it facilitates the life settlement process and negotiations as well. To learn more about the National Buyer Network, then individuals can contact the company.
Welcome Funds Life Settlement Brokers Summary
Ultimately, those who are interested in receiving a life settlement may want to do so only through a company that they can trust and count on. Because Welcome Funds is a broker and the policy will be purchased by another party, those who are wary of security and their information should also verify that the buyer will not divulge any personal information to other parties. To learn more about Welcome Funds and to get started, just visit the website today. Further, remember that it is best to be diligent, to take one’s times, and to be careful during the process. You are the only one who can protect your own interests best.
