Life Settlement Considerations

When is it Time to Consider a Life Settlement?

“It is a pleasure working with Veris. Their professionalism and hands on support is why we choose to work with them. They always provide a great service for our clients.”
-Roy Dixon, Partner
Planning Solutions Group

Here is when Life Settlement makes sense:

  • The policy holder is no longer able to pay the policy premium and is considering letting it lapse or surrendering it to the insurance company.
  • The policyholder has outlived his or her beneficiaries.
  • The policyholder’s health status has changed and cash for medical costs is necessary.
  • There is a change in ownership of a company, retirement or a key executive has left. When a business has been sold or participants have exited, a policy to finance a buy-sell agreement or a deferred compensation plan is no longer needed.

A Life Settlement may also provide advantages that a 1035 exchange cannot. A 1035 is a provision in the tax code allowing for the direct transfer of accrued funds from one life insurance policy to another without creating a taxable event. However, a life settlement is preferred to the tax-free exchange of accumulated policy value because it may provide more funds, even after taxes.

Policyholders can also donate the funds from a life settlement to a charity. It serves as a tax write-off, and the donor can also see his largesse in action during his lifetime.

Regardless of the reason, a life settlement is always a better option to a policy lapse or surrendering it back to the insurance company.

Veris Settlement Partners, Inc. is a multi-state viatical and life settlement broker. Veris Settlement Partners, Inc., and/or its affiliate firms Chesapeake Financial Settlements, LLC and Select Life Settlements Corporation, and/or one of its two directors as individuals, may be licensed as a life settlement broker or viatical settlement broker, or may be able to broker a life insurance policy owned by a resident of most states. For a list of states and licensing call Veris. Some or all of the proceeds from a life settlement may be taxable under federal or state income tax laws. Advice from a professional tax advisor is recommended. Veris Settlement Partners, inc. is not a viatical or life settlement provider. This Compliance Notice is current as of August 15, 2008 and is subject to change.