6 Policy Sale Programs
Which of the options fit you best? Having more than one choice gives our clients access to larger payouts delivered in a way that fits their unique needs.
Sell for a single lump-sum payment.
Sell for some cash now, quit paying premiums, and leave some benefit.
Sell for a tax-exempt Long-Term Care Benefit Account now, quit paying premiums, leave a separate funeral benefit and any balance remaining in the account.
Sell for a single tax-exempt lump sum payment.
Receive tax-exempt loan, quit paying premiums, and leave net benefit. No out-of-pocket costs.
Transact ADB with the carrier, receive tax-exempt cash, continue paying premiums, and leave net benefit.
|Life Settlements||Retained Benefit Life Settlements||Long-Term Care Life Settlements||Terminal Illness & Viatical Settlements||Private Policy Loans||Accelerated Death Benefits|
|Payout Type||All cash now.||Some cash now, some cash later||Some cash now, some cash later.||All cash now.||Some cash now, some cash later||Some cash now, some cash later|
|Minimum Age||60||60||No minimum age||30||60||No minimum age|
|Maximum Lifespan||23 years||23 years||No maximum lifespan||2-5 years||2 years||6-12 months|
|Minimum death benefit of policy||$100,000||$100,000||$100,000||$100,000||$100,000||No minimum policy|
|Must Be Terminally Ill?||No||No||No||Yes||Yes||Yes|
What is the difference between a Retained Benefit Life Settlement and a Life Settlement?
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
What is the difference between a Viatical Settlement and a Private Policy Loan?
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.
What is the difference between an Accelerated Death Benefit and a Viatical Settlement?
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.
What are the differences between the Long-Term Care Life Settlement and all other programs?
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.
How much more than the cash surrender value does a Life or Viatical Settlement provide?
Life and Viatical Settlements have historically yielded 4 to 8 times the cash surrender value.