Personal Circumstances:

• In order to eliminate unaffordable premium payments in exchange for cash
• To purchase cheaper, less expensive, or more applicable replacement insurance coverage
• To eliminate a policy no longer needed (insured outlived family and/or beneficiaries)
• To invest in other assets such as mutual funds or annuities
• Improve quality of life (i.e. new car, new home or vacation)
• In the event of a bankruptcy that requires asset liquidation
• In the event of a divorce that requires asset reallocation
• Increase benevolent charitable contributions

Estate Planning:

• Changes in estate tax laws no longer require a policy
• Create cash from a “dormant” asset to gain financial planning flexibility
• Estate taxes are no longer an issue so the policy is not needed
• In order to pay gift taxes on current estate transfer

Business and Professional Applications:

• Liquidation or reorganization of the business assets
• A “key man” policy is no longer needed or required by bank or partners
• Policy performance is below expectation
• Buy/sell agreement dissolved and policy is no longer required
• Deferred compensation payout requires policy liquidation
• Company-owned policies on key employees no longer needed

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Although most life insurance policy types qualify, the policy (coverage) must be at least $50,000, and the policy must have been in force for a minimum of two years.

The following are the types of policies that can qualify for a life settlement:

• Term
• Universal life
• Whole life
• Survivorship
• Key Man or COLI (Corporate Owned Life Insurance)
• Group life insurance (as long is it is convertible)

The policy can be owned by:

• An individual
• A trust
• A corporation
• A charitable organization

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Yes. An appraisal should be a part of your annual financial plan, as a life insurance policy is a financial asset. US Life Settlements offers complimentary appraisals without any obligation to sell your policy.

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No; the purchasing institutions will price your policy and give you an offer based on your medical records obtained from your current physician. All information will be kept strictly confidential in compliance with the Health Insurance Portability & Accountability Act of 1996 (HIPPA).

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Although you can use the proceeds as you wish, many of the frequent uses are listed below:

• Purchase “replacement” life insurance that is more applicable and use proceeds to reduce or eliminate future premiums
• Purchase long-term care insurance to secure well-being
• Eliminate debt
• Contribute to a charity
• Purchase an annuity to guarantee an income stream
• Invest in stocks, bonds or mutual funds
• Increase or maintain lifestyle

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Nearly 50% of policies more than two years old can be replaced with the same coverage for a lesser premium. Over the past decade, there has been a significant decrease in mortality costs and insurance prices have become more competitive. Should you decide to buy replacement coverage, you can reduce or eliminate future premiums by using the proceeds of your life settlement. In addition to lower premiums, replacement coverage can also be more relevant to your current situation (i.e. less or more coverage or a second to die policy). Our team has decades of experience in policy replacements and would be happy to assist you with a replacement or review of your current policies.

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Many life settlement brokers do not offer a full disclosure policy to the client. US Life Settlements offers the ability for clients to view all incoming bids from qualified buyers.

Although life settlements are regulated by each state’s department of insurance, limited regulation currently exists. The National Association of Insurance Commissioners (NAIC) has created two model ACTS which serve as a template of rules for each state to adopt. However only a limited number of states have adopted the stringent NAIC models. US Life Settlements has chosen to operate using both NAIC models as guidelines in an attempt to self-regulate the industry and to influence others to do the same. In addition, to protect our clients US Life Settlements only conducts business with institutional buyers that operate under the NAIC model acts.

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The amount of money that you will be offered for the sale of your policy will be influenced by the following variables: age of the insured, cost of premiums, health status of the insured, the type of policy, the insurance company where the policy is held, supply and demand influences on the timing of the sale and finally, a competitive bidding and negotiation process.

To receive an appraisal of your policy click here

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US Life Settlements uses two approaches to ensure that our clients receive the most competitive offers for their policies. The first approach utilizes our own proprietary appraisal system to establish a policy’s approximate value. This allows your case manager to compare incoming bids against the policy’s appraised value.

Second, US Life Settlements will be submitting your policy to all of the nation’s largest qualified buyers. These buyers will be bidding on your policy in a blind auction environment. An initial round of bidding will allow all interested qualified buyers to make an offer on the policy. The second round of bidding will narrow the top five buyers down to three remaining bidders. These three buyers will have one last round of competitive bidding for the policy involving negotiations on behalf of the client. This process can be explained further in a free consultation with a US Life Settlement representative in your area.

Click here to contact a US Life Settlement specialist or call toll free at (888) 757-USLS (8757).

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The payment of the ongoing premiums is no longer your responsibility, but that of the qualified buyer who purchases your policy.

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The following is provided for informational purposes only. US Life Settlements does not provide tax advice. The taxation of a life settlement may vary state by state, therefore please consult with any tax related issues such as a life settlement . The life settlement proceeds are treated as follows:

• Tax free up to the amount invested or the base amount (premiums paid)
• Ordinary income is due on the amount up to the cash surrender value
• Capital gains tax is due on the amount above the cash surrender value

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US Life Settlements represents only the best interests of our clients. Our team honors our fiduciary responsibility to provide each client with their best available options, even if it means recommending a client keep their current policy in force.

US Life Settlements has strong working relationships with each of the largest qualified life settlement buyers in the life settlement arena. US Life Settlements will package your policy and each buyer will compete against one another for the opportunity to purchase your policy. Because US Life Settlements markets your policy to so many qualified buyers who must bid over your policy, our client's policies receive the most competitive offers for the sale of their policies. in order to work with US Life Settlements and have access to our clients policies, each qualified buyer must pass a thorough review to ensure both qualification and reliability.

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No. You are not obligated to accept the offer from a buyer.

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If you reverse your decision once you have sold your policy, you have up to15 days to cancel the life settlement contract. The purchaser will return ownership rights once the money has been returned. By law, some states allow up to 30 days for you to cancel. The guidelines for the rescission period will be explained in detail in the Life Settlement Purchase & Sale Agreement, which can vary on a state-by-state basis.

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If the insured should pass away at any time up to the 15th day after you receive the proceeds from the settlement, the settlement contract will automatically cancel. The buyer will pay the original policy owner or the beneficiaries any proceeds it receives from the policy (minus any money already paid for the purchase of the policy and any premiums paid to the insurance company to keep the policy in force).

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You will not be responsible for gathering your medical records for a life settlement. Your US Life Settlements specialist will ask you to complete an application and a medical release form that will allow us to gather the necessary information from your life insurance company and your doctors. By law, all information gathered will be kept confidential and cannot be distributed without your consent.

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