Frequently Asked Questions

  • Are life settlement proceeds taxable?

  • Are life settlements common?

  • Are life settlements legal and regulated?

  • Are there any required disclosures?

  • How do firms project how long the insured is going to live?

  • How is a Life Settlement different from a Viatical Settlement?

  • How is privacy maintained?

  • How long will the transaction take?

  • How much money do I have to pay upfront?

  • If I sell my life insurance policy to a third party, is a stranger benefiting from my eventual death?

  • Policy loans, collateral assignments, etc. are not considered life insurance policy sales?

  • Should I invest in life settlements?

  • What are Accelerated Death Benefits?

  • What are alternatives to a life settlement?

  • What are the benefits of working with members of the Life Insurance Settlement Association?

  • What if I change my mind?

  • Who gets compensated in a life settlement transaction?

  • Who is purchasing my policy?

  • Why are life settlements not for everyone?

  • Why would an investor buy a life insurance policy?