Life insurance is a sellable asset that may have great value well before your passing, just like home.
With ALIR, the process is timely and transparent.
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- you don’t need as much insurance coverage
- your children are successful adults and don’t need the protection
- you cannot afford the life insurance costs
- you need funds to cover medical expenses
- you’d like to pay down your debt
- you no longer have beneficiaries
Many customers have come to ALIR in emergencies. Maybe you’re in jeopardy of losing your home, you’ve been diagnosed with a terminal illness, or have become permanently disabled, etc.
ALIR is not tied to banking hours and will be available to get the job done during all functional hours.
You can sell your life insurance policy for cash. There are also options where you can collect cash and still have some funds available for family when you pass.
Medical Insurance doesn’t always cover the best care or even the entire sum of basic costs. Social Security benefits usually aren’t enough for a mortgage and daily living expenses. You’ve stressed enough during the younger working years. Many people use their life settlement proceeds to offset costs, so they can relax and enjoy the coming years.
Different types of Life Insurance Sales
Selling your life insurance policy is a big decision, so let’s explore the benefits and alternative options available to you. ALIR will gladly provide you with professional advice, taking all aspects of your finances, health, and family into account.
Every policy is different. Term Life, Whole Life, Universal Life, Variable Life, etc. Think of it as a small community of new homes. Same builder, but with different options inside. There is no set amount for the value of your policy. The future premiums coupled with your health history are the significant factors in how a life settlement is calculated.
Your Whole Life or Universal Life policy may have cash value (“Surrender Value”) built into it. With a life settlement, the goal would be to beat that Surrender Value amount. In most cases, the difference is significantly more.
Life Settlement or Viatical Settlement:
A Life Settlement is when a life insurance policy is sold to a third party. You would either (1) pay capital gains on the difference between what you’ve paid into the policy since the issue and what you’ve received through the settlement, or (2) claim a loss on that difference. ALIR will provide you with the necessary documents and figures to go over with your financial representative.
A Viatical Settlement is when someone with a terminal illness (where their doctor gives a prognosis under 2 years) sells their life insurance policy to a third party. Depending on the state, if your life expectancy is less than 2 years, and your doctor is willing to put that in writing, you will be exempt from paying taxes on the settlement proceeds. ALIR will provide you with the necessary documents and figures to go over with your financial representative.
After the Life Settlement
- You no longer have premiums to pay. These are covered by the new policy owner.
- The third-party buyer hires a servicing company to maintain the asset. The policy and your name become a case number. At ALIR, we take seriously the fact that your privacy and information are sensitive. ALIR performs thorough background checks and a review of investor business practices when engaging with a buyer. HIPAA laws are followed, and the Department of Insurance regulates these practices.
- You’ll be contacted every so often, to see if there have been any changes in contact information or health status. You can select your method of contact in the settlement contract. If there is ever a concern about who is contacting you, ALIR will gladly verify the contact, and relay vital information if you’d prefer.
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