Q. What is a senior life settlement?

Q. Why should I consider a senior life settlement?

Q. Are there any other alternatives to senior life settlement?

Q. Will I qualify for a senior life settlement?

Q. Will I need to take a new medical examination?

Q. How long will the process take?

Q. What types of insurance policies can I sell?

Q. How much will I receive from the sale of my policy?

Q. Once I sell my policy, are the proceeds taxable?

Q. Once I sell my policy, are my benefits affected?

Q. What happens to my policy after I sell it?

Q. Will my personal, financial, medical and insurance information be kept confidential?

What is a senior life settlement?
Ans. A senior, or life, settlement is the sale of an insurance policy on the life of an insured over age sixty-five (with health concerns that are not catastrophic or life-threatening) to a third party for a cash payment. The third party receives all rights to and proceeds from the policy and takes over premium payments. In return, the seller receives a cash payment. 

Why should I consider a senior life settlement?
Ans. You should consider a senior settlement if you must have immediate cash, if your policy is no longer needed, or if premiums have become unaffordable. Frequently, policies are sold to maintain a comfortable standard of living during retirement, to pay for rising healthcare costs, or to address changes in estate planning needs. 

Are there any other alternatives to senior life settlement?
Ans. You may wish to consider Accelerated Benefits, loans secured by your policy, or surrender of your policy to the insurance company for accumulated cash value. Your financial planner will help you arrive at the appropriate decision.

Will I qualify for a senior life settlement?
Ans. Many seniors over the age of 65 with a history of health problems will qualify for a senior life settlement. Seniors over the age of 80 will almost always qualify.

Will I need to take a new medical examination?
Ans. No new medical examination is necessary. Policy Exchange Network recommends up-to-date medical records to ensure the highest possible offer for your policy.

How long will the process take?
Ans. The entire process from collecting all the information necessary, to receiving offers, to completing the final paperwork generally takes from four to eight weeks. You can speed the process along by making sure that your initial senior life settlement application contains all the necessary information. 

What types of insurance policies can I sell?
Ans. Policy Exchange Network can help you sell Universal Life, Whole Life, and Term insurance policies, as well as Joint Survivorship and corporate-owned insurance policies. An insurance policy within the contestable period, usually the first two years the policy is in force, cannot be considered. Ideally, to qualify for senior life settlement, your policy should have a death benefit of at least $250,000. There is no maximum death benefit. 

How much will I receive from the sale of my policy?
Ans. Purchase price is determined by several factors including the face value of your policy, annual premium payments, any outstanding loans against your policy, the cash value of your policy, prevailing market interest rates, your age and your health.

Once I sell my policy, are the proceeds taxable?
Ans. Proceeds from the sale of your policy may be taxable and may have estate planning consequences. Consult a professional tax advisor to determine your liability.

Once I sell my policy, are my benefits affected?
Ans. Proceeds from the sale of your policy may affect public assistance or means-based entitlements. Consult the appropriate state Department of Health Services or state Department of Social Services to determine the effect on your benefits.

What happens to my policy after I sell it?
Ans. When your policy is sold, all rights and obligations are transferred to the purchaser. You are no longer responsible for making any premium payments. The death benefits will eventually be paid to the purchaser.

Will my personal, financial, medical and insurance information be kept confidential?
Ans. Any personal, financial, medical or insurance information obtained by Policy Exchange Network will be kept in the strictest confidence by our staff and will not be released to any third parties unless authorized by you in writing.