FAQ & Resources
MaxLife Solutions Advantages:
- Ensure Maximum Payout
- Dedicated Account Manager
- Free Appraisal Process
- We Do All The Legwork
- 72 Financial Institutions
- Billions of $$$ Processed
- Licensed Brokerage
MaxLife Solutions professionals are available to answer any questions you may have. Call Today!
Our experience has enabled us to compile a series of the most common inquiries in selling a life insurance policy through a life settlement.
FAQs
- What is a life settlement?
- What type of policies are covered?
- Is there a limit to the size of policy I can sell?
- What are the benefits of a Life Settlement?
- How much will I receive for my policy?
- Will MaxLife Solutions help me find the highest payout for my policy?
- Who makes the remaining premium payments?
- Are there any restrictions with the payout from a Life Settlement?
- How long does the process take?
- How can I start the process?
- Are the proceeds taxable?
- What if I have more questions?
- Can you supply information about viaticals?
- In what states are you licensed to work?
1. What is a life settlement?
A financial tool used by senior policy holders and financial advisors applied to life insurance creating money in excess of cash surrender value.
2. What type of policies are covered?
Almost any type of life insurance. (Term, universal life, whole life, survivorship, keyman owned by an individual, trust, corporation or charitable organization)
3. Is there a limit to the size of policy I can sell?
Yes, $50,000 to $20 million per policy.
4. What are the benefits of a Life Settlement?
- Create more comfortable retirement years
- Eliminate or reduce future life insurance premiums on a new policy
- Fund new needed Coverage, Annuities, Long-Term Care or Investments
- A more profitable and bigger payout alternative than surrender or lapse
- Fund a single premium Annuity/Life
- Fund the purchase of a needed survivorship policy
- Settle personal or business debts proactively
- Bestow cash gifts to family members or charities
- Maintain a lifestyle despite changes in finances or health
5. How much will I receive for my policy?
There are many factors that determine the offer amounts. These include age, premiums, client's health, type of policy, policy size, and competitive bidding. However, as a general rule, age, health and future premiums are the primary factors that determine the amount of the Life Settlement offer.
6. Will MaxLife Solutions help me find the highest payout for my policy?
Yes, the benefit of working with MaxLife Solutions is that we work with numerous funders. We are a nationwide life settlement broker. Once we submit your quote and start to receive bids, we will notify you which funder is offering the most. We assure you that MaxLife Solutions will get you the highest payout for your policy.
7. Who makes the remaining premium payments?
The funding institution will pay all future premiums after the Life Settlement transaction.
8. Are there any restrictions with the payout from a Life Settlement?
The Life Settlement payout is unrestricted and can be used in any way you chose.
9. How long does the process take?
The offer process can occur within two weeks. If you accept the offer, you normally see payment within one month - approximately six weeks total from the time of qualification to receipt of proceeds. There is NO obligation to accept a Life Settlement offer.
10. How can I start the process?
We have setup an easy online evaluation form. After we receive your information, we will contact you if clarification is needed. Next, we find you the highest payout. Remember, there is NO obligation to accept a Life Settlement offer.
We recommend that with all financial decisions, you consult your tax advisor. Generally speaking, the proceeds are tax free up to the amount of premium paid, taxed as ordinary income up to cash surrender value and taxed as capital gains above cash surrender value.
12. What if I have more questions?
No problem, we are here to help you. Feel free to contact us however you are most comfortable -- online form, email, or toll-free at 1-877-776-9254.
13. Can you supply information about viaticals?
Yes, we are trained viatical brokers, and can assist you with your current policy. Please visit our viatical page for some basic information about viaticals and viatical settlements.
14. In what states are you licensed to work?
MaxLife Solutions is authorized to work on life insurance settlements in Arizona, Arkansas, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Illinois, Iowa, Kansas, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, Missouri, New Hampshire, New Jersey, New Mexico, New York, Pennsylvania, Rhode Island, South Carolina, South Dakota, West Virginia, Wisconsin and Wyoming. Additionally, MaxLife Solutions is authorized to work on viatical settlements in Arizona, District of Columbia, Georgia, Illinois, Louisiana, Maryland, Minnesota, Missouri, New Jersey, Pennsylvania, South Dakota and Wyoming.
Glossary
The following definitions are general and vary by state based on the legality of life settlements within that state.
Qualified Institutional Buyer – As used in rule 144A
Viatical or Life Settlement Investment
Viatical or Life Settlement Provider/Issuer
Viatical or Life Settlement Purchaser/Investor
A feature of a life insurance policy that typically pays some or all of the policy's death benefit before the insured dies. It may provide a way to get cash from a policy without selling it to a third party.
This means (1) being unable to perform at least two activities of daily living (i.e., eating, toileting, transferring, bathing, dressing or continence), or (2) requiring substantial supervision to protect the individual from threats to health and safety due to severe cognitive impairment, or (3) having a level of disability similar to that described in (1) as determined by the Secretary of Health and Human Services.
Means a state or federally regulated financial institution organized under the laws of the United States or any state, whose responsibilities include accepting investor funds, transferring funds in order to purchase policies, paying insurance premiums and receiving death benefits for all policies where viatical investors are not the beneficiaries.
An underwriter, placement agent, lender, purchaser of securities, purchaser of a policy or certificate from a Provider, credit enhancer, or any entity that has a direct ownership in a policy or certificate that is the subject of a Sales Contract, but:
1. whose principal activity related to the transaction is providing funds to effect the Life Settlement or purchase of one or more policies: and
2. Who has an agreement in writing with one or more Providers to finance the acquisitions of Sales Contracts. Financing Entity does not include a non-accredited investor or Purchaser.
A transaction in which a licensed Provider obtains financing from a Financing Entity including, without limitation, any secured or unsecured financing, any securitization transaction, or any securities offering which either is registered or exempt from registration under federal and state securities law.
This term means the person covered under the policy being considered for viatification.
(From NCOIL definitions)
The number of months the individual insured under the life insurance policy to be viaticated can be expected to live as determined by the viatical settlement provider considering medical records and appropriate experiential data.
The term today covers the sale, assignment, transfer, devise or bequest of the death benefit or any portion of an insurance policy or certificate of insurance for compensation less that the expected death benefit of the insurance policy or certificate. A Life Settlement also includes a loan or other lending transaction secured primarily by an individual or group life insurance policy or death benefit other than a loan by a life insurance company pursuant to the terms of the life insurance contract, or a loan secured by the cash value of a policy. It also includes an agreement to transfer ownership or change the beneficiary designation at a later date regardless of the date that compensation is paid to the seller.
Life Settlement, Viatical/Life Settlement Broker, Viatical/Life Settlement Provider, Net Death Benefit, Life Expectancy, Owner, Insured, Purchase Agreement, Sales Contract, Financing Entities, Financing Transaction, Special Purpose Entity, Related Provider Trust, Secondary Markets, Accredited Investor, Qualified Institutional Buyer
The amount of the life insurance policy or certificate to be viaticated less any outstanding debts or liens.
This term means the Owner of a life insurance policy or a certificate holder under a group policy. The term "Owner" does not include any Provider or other licensee.
A Contract or agreement entered into by a Provider with a Purchaser, to which the Owner is not a party, to purchase a policy or an interest in a life insurance policy, or acquire a beneficial interest, or a certificate issued pursuant to a group life insurance policy.
This shall mean any of the following entities, acting for its own account or the accounts of other qualified institutional buyers, that in the aggregate owns and invests on a discretionary basis at least $100 million in securities of issuers that are not affiliated with the entity: Any insurance company as defined in section 2(a)(13) of the Act; Any investment company registered under the Investment Company Act or any business development company as defined in section 2(a)(48) of that Act; Any Small Business Investment company licensed by the U.S. Small Business Administration under section 301(c) or (d) of the Small Business Investment Act of 1958; Any plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees; Any employee benefit plan within the meaning of title I of the Employee Retirement Income Security Act of 1974; Any trust fund whose trustee is a bank or trust company and whose participants are exclusively plans of the types identified in paragraph (a)(I)(i)(D) or (E) of this section, except trust funds that include as participants individual retirement accounts or H.R. 10 plans; Any business development company as defined in section 202(a)(22) of the Investment Advisers Act of 1940; Any organization described in section 501(c) (3) of the Internal Revenue Code, corporation (other than a bank as defined in section 3(a)(2) of the Act or a savings and loan association or other institution referenced in section 3(a)(5)(A) of the Act or a foreign bank or savings and loan association or equivalent institution), partnership, or Massachusetts or similar business trust; and Any investment adviser registered under the Investment Advisers Act.
Any dealer registered pursuant to section 15 of the Exchange Act, acting for its own account of the accounts of other qualified institutional buyers, that in the aggregate owns and invests on a discretionary basis at least $10 million of securities of issuers that are not affiliated with the dealer, Provided, That securities constituting the whole or a part of an unsold allotment to or subscription by a dealer as a participant in a public offering shall not be deemed to be owned by such dealer;
Any dealer registered pursuant to section 15 of the Exchange Act acting in a riskless principal transaction on behalf of a qualified institutional buyer; Any investment company registered under the Investment Company Act, acting for its own account or for the accounts of other qualified institutional buyers, that is part of a family of investment companies which own in the aggregate at least $100 million in securities of issuers, other than issuers that are affiliated with the investment company or are part of such family of investment companies. Family of investment companies means any two or more investment companies registered under the Investment Company Act, except for a unit investment trust whose assets consist solely of shares of one or more registered investment companies, that have the same investment adviser (or, in the case of unit investment trusts, the same depositor), Provided That, for purposes of this section: Each series of a series company (as defined in rule 18f-2 under the Investment Company Act) shall be deemed to be a separate investment company; and Investment companies shall be deemed to have the same adviser (or depositor) if their advisers (or depositors) are majority-owned subsidiaries of the same parent, or if one investment company’s adviser (or depositor) is a majority-owned subsidiary of the other investment company’s adviser (or depositor); Any entity, all of the equity owners of which are qualified institutional buyers, acting for its own account or the accounts of other qualified institutional buyers; and Any bank as defined in section 3(a)(2) of the Act, any savings and loan association or other institution as referenced in section 3(a)(5)(A) of the Act, or any foreign bank or savings and loan association or equivalent institution, acting for its own account or the accounts of other qualified institutional buyers, that in the aggregate owns and invests on a discretionary basis at least $100 million in securities of issuers that are not affiliated with it and that has an audited net worth of a least $25 million as demonstrated in its latest annual financial statements, as of a date not more than 16 months preceding the date of the sale under the Rule in the case of a U.S. bank or savings and loan association, and not more than 18 months preceding such date of sale for a foreign bank or savings and loan association or equivalent institution.
A titling trust or other trust established by a licensed Provider or a Financing Entity for the sole purpose of holding ownership or beneficial interest in purchased policies in connection with a Financing Transaction. In order to qualify as a Provider Trust, the trust must have a written agreement with the licensed Provider under which the licensed Provider is responsible for ensuring compliance with all statutory and regulatory requirements and under which the trust agrees to make all records and files relating to life settlement transactions available to the Department of Insurance as if those records and files were maintained directly by the licensed Provider.
This is a written agreement entered into between a Provider and an Owner, the subject of which is a Life Settlement. Sales Contract also includes a written agreement for a loan or other lending transaction, secured primarily by an individual or a group life insurance policy, other than a loan by a life insurance company pursuant to the terms of the Sales Contract, or a loan secured by the cash value of a policy.
These markets do not include a “Provider,” a “Purchaser,” a “Financing Entity," or a “Special Purpose Entity,” but rather does include any Person who is a qualified institutional buyer or accredited investor (as defined, respectively, in Rule 144A or Regulation D, Rule 501, promulgated under the Securities Act of 1933, as amended.)
(From General Rules and Regulations promulgated under the Securities Act of 1933)
A corporation, limited liability company, or other similar entity formed solely to provide either directly or indirectly access to institutional capital markets to a Financing Entity or Provider.
Having an illness or sickness that can reasonably be expected to result in death in twenty-four (24) months or less.
Viatical Settlement, Viatical/Life Settlement Broker, Viatical/Life Settlement Provider, Viaticals, Viaticate, Viator, Accelerated Death Benefit, Net Death Benefit, Life Expectancy, Terminally Ill, Chronically Ill, Owner, Insured, Purchase Agreement, Sales Contract, Financing Entities, Financing Transaction, Special Purpose Entity, Related Provider Trust, Secondary Markets, Accredited Investor, Qualified Institutional Buyer
Viatical or Life Settlement Investment
means the contractual right to receive any portion of the death benefit or ownership of a life insurance policy or certificate, for consideration that is less than the expected death benefit of the life insurance policy or certificate. Viatical Investment does not include:
A. any transaction between a viator and a viatical settlement provider;
B. any transfer of ownership and/or beneficial interest in a life insurance policy from a viatical settlement provider to another viatical settlement provider or to any legal entity formed solely for the purpose of holding ownership and/or beneficial interest in a life insurance policy or policies;
C. the bona fide assignment of a life insurance policy to a bank, savings bank, savings and loan association, credit union, or other licensed lending institution as collateral for a loan; or
D. the exercise of accelerated benefits pursuant to the terms of a life insurance policy issued in accordance with the insurance laws of your state.
The definition of Viatical Investment is intended to include transactions in life insurance policies regardless of the age or health of the insured. Some states may have adopted insurance laws to limit the scope of coverage to insureds who are terminally or chronically ill.
Viatical or Life Settlement Provider/Issuer
Means, in the case of a fractional interest in Viatical Investments, any person who creates, for the purpose of sale, the fractional interest, and in the case of a viatical investment that is not fractionalized, any person engaged in the business of effecting transactions in Viatical Investments to which the viator is not a party. Viatical Issuer does not include a broker-dealer, an agent of any person who sells a Viatical Investment to no more than one natural person in a calendar year.
Viatical or Life Settlement Purchaser/Investor
Means any person who purchases or subscribes to purchase a Viatical Investment.
This means a person who, on behalf of an Owner and for a fee, commission or other valuable consideration, offers or attempts to negotiate Sales Contracts, between an Owner and one or more Providers, the subject of which is a Life Settlement. A broker represents only the Owners and owes a fiduciary duty to the Owner to act according to the Owners instructions, notwithstanding the manner in which the Broker is compensated. A Broker does not include an attorney, certified public accountant or financial planner retained in the type of practice customarily performed in their professional capacity to represent the Owner whose compensation is not paid directly or indirectly by the Provider.
This means a Person, other than an Owner, who enters into or effectuates a Sales Contract with an Owner, the subject of which is a Life Settlement. A Provider does not include: a. any bank, savings bank, savings and loan association, credit union or other licensed institution which takes an assignment of a life insurance policy or certificate issued pursuant to a group life insurance policy as collateral for a loan; b. any natural Person who enters into no more than one agreement in a calendar year for the transfer of a life insurance policy, for compensation or anything of value less than the expected death benefit payable under the policy; c. a Purchaser; d. or any authorized or eligible insurer that provides stop loss coverage to a Provider; e. a Financial Entity; f. a Special Purpose Entity; g. a Related Provider Trust; h. a Broker.
(From NCOIL definitions)
A general term referring to transactions in the viatical settlement marketplace.
To sell a life insurance policy to a third party when the insured is terminally ill.
A terminally ill person who sells his or her life insurance policy to a third party and receives a lump sum cash payment.
Testimonials
“This really did a lot for our future. By funding our long-term needs, it saved us from being a burden on our children.”
-- The Spries
Case Studies
Term Life Insurance
- Male, 74
- Policy face value: $3 million
- Cash value: $82,000
- Life settlement payout: $705,000
