6 Policy Sale Programs

The Retained Benefit Life Settlement typically provides immediate cash and some benefit after the Insured dies. As with the Life Settlement, its minimum age is 60, maximum lifespan 23 years, and smallest policy $100,000. More information on this program can be found in our Retained Benefit Life Settlement page.

The Life Settlement is a single lump-sum of immediate cash. As with the Retained Benefit Life Settlement, its minimum age is 60, maximum lifespan 23 years, and smallest policy $100,000. The Life Settlement is by far the most popular Program of all. More information on this program can be found in our Life Settlements page

Terminal Illness & Viatical Settlements

Terminal illness cases have a minimum age of 30, maximum lifespan 5 years, and smallest policy $50,000. If the Insured’s physician will certify that death is probable in 24 months or less, it becomes a HIPAA-compliant Viatical Settlement and is tax-exempt. More information on this program can be found in our Viatical Settlement page.

Private Policy Loan

The Private Policy Loan provides some cash now. The Lender pays premiums and accrues interest. If the Insured dies during the Loan term, the beneficiary receives the balance of benefit after the Lender deducts Loan principal, interest, and fees. The Policy Owner has no out-of- pocket costs, or obligation to pay off the Loan as it is Non-Recourse. If the Insured outlives the Loan Term, the Policy Owner signs off any remaining benefit and the Loan is canceled. Loans are tax-exempt. The maximum lifespan is 2 years, minimum age is 60, and, the smallest policy is 100,000. Learn more inour Private Policy Loan program page.

Some life insurance policies contain a Loan feature known as Accelerated Death Benefit. It provides immediate cash if the Insured’s lifespan is within carrier limits, usually 6 months but with some insurance carriers 12 months per certification by Insured’s physician. The Policy Owner is responsible for premium payments after using up any cash value. The beneficiary receives the net death benefit after the carrier has deducted Loan principal, interest, and fees. The Accelerated Death Benefit payment and final benefit are tax-exempt.

Some carriers have a fixed payout as low as 15%, and claims may be denied because the carrier disagrees with the physician’s lifespan certification.

Our team may recommend securing Viatical Settlement bids to determine how much immediate cash would be available. And even if the Accelerated Death Benefit is paid, a Viatical Settlement for the remaining policy might be possible if its value is at least $50,000.

The Long-Term Care Life Settlement does not provide money to the Policy Owner, unlike all other programs. Instead, a portion of the policy’s benefit is converted into an FDIC-insured Long-Term Care Benefit Account. The Account’s FDIC-approved Trustee pays for all forms of licensed Long-Term Care, including but not limited to Home Nursing/Health Care, Assisted Living, Alzheimer’s/Memory Care, Skilled Nursing Facility Care, and Hospice Care. The Policy Owner may change Providers at will, and the Insured could even move to another state. Unused Account value flows to the beneficiary.

In addition, there is a stand-alone Final Expense Benefit even if the Account has been exhausted. All payments are tax-exempt.

Life and Viatical Settlements have historically yielded 4 to 8 times the cash surrender value.