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Frequently Asked Questions

With people living longer and needing more for their retirement, selling life insurance policies has gained popularity in recent years. It has become a viable alternative to realize immediate cash.

The most successful candidates for selling their life insurance are people 70 years or older who have re-evaluated their need for a life insurance policy. Rather than continue paying expensive premiums for an unneeded policy, they convert it to cash funds to use while they are living.

Policy amounts and payouts vary widely, making it difficult to set a standard amount. However qualified individuals can generally expect to get a significant percentage above the surrender value.

As part of the application process, we provide you with full and complete disclosure of the fees for our services. We don’t charge any up-front fees and don’t get paid until you do.

Absolutely. Our privacy policy and advanced transaction procedures ensure that your identity is never revealed to anyone without your consent. Funding for Life strictly complies with all privacy laws like the Health Insurance Portability and Accountability Act of 1996 which protects and secures your medical/health related information.

Funds are released from escrow within 72 hours of the buyer’s receipt of written confirmation of change of ownership and beneficiary rights from the insurance company.

Life insurance policies are purchased through licensed life settlement providers by institutional investors interested in buying a variety of assets to balance their investment portfolios and may also be sold to other investment professionals.

In general, selling your life insurance policy is a smart idea for people 70 and over, who no longer need a life insurance policy to protect their children or assets or can no longer afford to pay expensive premiums.

Universal Life, Whole Life, Term and Convertible Term Life policies issued by U.S.-based insurance companies. Joint and second-to-die policies are eligible as well.

Generally, a policy with a face value of $50,000 or higher could be eligible for sale.

No, once the policy is sold, you have no future premium obligations whatsoever.

This is an individual decision. Some people like to have some coverage after selling their policy. This may be a possibility.

Selling life insurance policies is a complex legal and financial transaction that requires compliance with state insurance law. Professional assistance is necessary not only to navigate this market, but also to maximize the policy’s value in the marketplace and to locate an appropriate buyer quickly.

This can be a costly decision. Generally speaking, the surrender amount may be a fraction of what a licensed life settlement provider can pay if you qualify. Why cheat yourself of money you deserve?

Typically, the money you receive for selling your life insurance policy will be tax-free up to your basis in the policy. This represents a powerful financial benefit! However, you must contact your own tax professional for specific advice concerning your individual situation.

Yes, terminally ill individuals are typically well-qualified to sell their life insurance policy. We have been very successful in working with individuals fighting terminal illness.

Unlike other financial options for seniors, there are no restrictions on how the proceeds from selling a policy can be used. That said, depending upon your specific financial situation, you may want to seek the advice of a tax or legal professional to determine any other consequences.

There are no out of pocket costs when we work with you and you have no obligation to sell your policy or to accept any offer. A third party escrow company is used in every transaction and we work with only the most reputable licensed companies in the industry.

In most states you have 15 days (in some states up to the 30 days) after receipt of the money from the buyer to change your mind.

Yes. According to a U.S. Supreme Court ruling stretching back almost a century, a life insurance policy is considered your personal property. You can sell it, trade it, or give it away. Your insurance company generally has no right to block or question your assignment of policy rights.