Effective Date: 2-18-2025
Disclosures
A life settlement is the sale of an existing life insurance policy to a third party for a lump-sum payment, which is typically greater than the policy's cash surrender value, but less than the death benefit. This is a regulated transaction in many states, and it is important to understand that laws governing life settlements vary by state.
Please note:Eligibility: To qualify for a life settlement, you must meet certain eligibility criteria, including but not limited to age and health status. Each state has its own set of criteria that will affect your eligibility.
State Regulations: The terms and conditions of life settlements are subject to state laws. Some states require specific disclosures, cooling-off periods, and other safeguards. It is important to consult a licensed professional to understand how state law may impact the transaction.
Tax Implications: A life settlement may have tax consequences. The lump-sum payment received from the sale of your life insurance policy may be subject to federal and state taxes. It is advised that you consult with a tax advisor to understand the potential tax implications.
Impact on Beneficiaries: Once the policy is sold in a life settlement, the original beneficiaries will no longer be entitled to the death benefit. It is recommended to carefully consider this impact before proceeding with a life settlement.
No Obligation: There is no obligation to proceed with a life settlement once you have received information. You are free to explore all available options, including keeping your policy in force or surrendering it to the insurer.Please ensure you fully understand the terms, benefits, and potential consequences of a life settlement before moving forward.
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