Retire Income

Frequently Asked Questions

How Can Selling My Life Insurance Policy Help Me Afford My Retirement?

When you sell your life insurance policy on the open market, the average cash payment is 3 to 5 times the amount of the cash surrender value your insurance carrier will give you. You can use this money to fund retirement living.

What Do I Need To Do To Sell My Life Insurance?

Generally, anybody who is 70 years old and/or has a life expectancy between 2 and 15 years, and has a life insurance policy with a death benefit of at least $500,000 is eligible to sell their life insurance policy.

What Are The Benefits Of Selling My Life Insurance Policy, Rather Than Liquidating Other Assets?

When you sell your life insurance policy, the money is yours to keep, and allows you to preserve other long-term assets such as your home and your stock portfolio to pass on to your family or to wait until it is more convenient to sell them.

Retire With Income

Few people know that they can sell their life insurance on the open market.

If you are at least 70 and/or have a 2-15 year life expectancy, have a policy benefit of at least $500,000 on a policy that is at least two years old, call Quantum Life Settlements at (866) 346-7707 to discover how your life insurance policy can give you funding for your retirement years.

Why would someone sell their life insurance policy?

There are many reasons someone would sell a life insurance policy:

• Premiums have become unaffordable
• Term period or conversion privilege expiring
• Financial hardships are present
• Your business is sold or you retire and corporate coverage is no longer needed
• Change in estate value
• Long-term care is required
• Death of a spouse or divorce
• Policy has underperfomed
• Any change in the original need for coverage

What types of life insurance policies can be sold?

Generally, all types of life insurance policies can be sold including term, which may come as a surprise to consumers. Although insurance companies do not place a cash value on term policies, they often have significant cash value as an asset in a life settlement transaction.

How much money will you receive for your policy?

Typically, a policy owner can expect to receive an amount equal to 20 percent of a life insurance policy’s face amount. Please note that funders will typically pay an average of three to five times more than the existing cash surrender value¹.

¹ Deloitte Development LLC.(2005). The Life Settlement Market

What happens after a life insurance policy is sold?

After a policy is sold, all rights and obligations of the life insurance policy are transferred to the new owner. Sellers are no longer responsible for paying premiums and are free to use the proceeds however they wish.

Are there any application costs or medical exams?

There are no application costs or medical exams required. .

What factors go into the offer that I will receive?

The gross offer for your policy is based upon your age, your life expectancy, your premium costs, your insurance company’s rating and other policy details. While you will never pay out-of-pocket for any services, the net offer will reflect the fee earned by your life settlement broker.

What if I change my mind?

If you change your mind about selling your policy, you can cancel the life settlement contract at any time up to the end of the rescission period. Some states have a rescission period of three days, while others have a 15 to 30 day rescission period.

Are the proceeds taxable?

On May 1, 2009, the IRS issued two revenue rulings to clarify the income tax treatment to the surrender, sale and purchase of life insurance policies. Quantum Life Settlements strongly recommends consulting your tax advisor for more information.

Do I Qualify to Sell My Life Insurance?

Industry leader Quantum Life Settlements offers a free qualifier tool to let people know if they’re eligible to sell their life insurance.

Click here to take the brief qualifying quiz on the Quantum Life Settlements website and find out if you’re eligible to sell your life insurance for cash today.

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