Frequently Asked Questions
• What are the requirements necessary to sell a policy?
• What types of policies are acceptable?
• What if I have already talked to another company?
• I'm ready to find out more. What do I do now?
• What if you still need coverage?
What are the requirements necessary to sell a policy?
All of the following must be present in order to sell a policy:
• Insured must be at least 70 years old (possibly younger if there are health issues)
• Minimum policy size $250,000, no maximum
• Policy must be at least 2 years old
• The insurance company must be rated A or better by AM Best
• Term, Whole Life, Universal Life and Variable Universal Life are acceptable types of insurance
What types of policies are acceptable?
Types of policies considered:
• Universal Life,
• Variable Universal Life,
• Whole Life,
• Key Man,
• Split-dollar,
• Buy-Sell,
• Corporate/Company Owned Life Insurance (COLI)
• Bank Owned Life Insurance (BOLI)
• Term
What if I have already talked to another Company?
Talking to a Broker from another Company or even filling out an application only precludes us from using that particular Broker again. We have many Brokers in our Network from which to choose. However, we cannot stress enough, it is much better if you do not contact other Brokers directly. Doing so compromises the number of Brokers from which we have to choose. That said, we have never had a problem identifying a Broker for our clients.
Even if you have accepted an offer and the funds have been sent to you (in states that have a rescission period which is usually 15 days) you can back out of the deal. Of course, you have to return the money to the funder and sometimes there is a small administrative fee assessed. A new Broker would be brought in and the case processed again.
I’m ready to find out more. What do I do now?
If you would like to find out more about the options available to you, we are available for consultation via:• Our Contact Us Form
• By Phone, Toll Free, at 888.224.2465
What if you still need coverage?
You might consider converting an older, high premium or under performing UL policy into a newer possibly less expensive policy. People are living longer. This has caused a revision of the insurance company Commissioner's Standard and Ordinary Mortality Table that is used to establish insurance premium rates. Therefore, if the insured’s health has remained relatively constant, it is sometimes possible to buy new insurance at less cost than just a few years ago.
A Life Settlement influx of cash, when used as a financial planning tool, presents some very exciting possibilities for the Policy Owner.
- For instance, one of our Master Brokers had a case involving an 85 year old female with a $1 million universal life insurance policy. The premium payments were $43,211, and the cash value was $30,625. The client wanted to maintain the same coverage, but needed to lower the annual premium payments. They were successful in getting her a life settlement in the amount of $320,000, which was used toward the purchase of a new $1 million policy with lower premium payments.
- Another case involved a 74 year old female with a $2 million universal life insurance policy with $54,000 in annual premium payment. She no longer needed a high level of insurance coverage and sought reduced coverage with no premium payments. They were successful in receiving three offers. The first offer was $217,000, the second was $225,000, and the third offer, which the client accepted, involved a paid-up life insurance package where the client received a new policy with a guaranteed death benefit of $500,000 with no annual premiums.
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