Life settlements can be real saviors for people whose life insurance policies will expire if the status quo is maintained, and who cannot (or are unwilling) to put additional cash into the policy to keep it alive. Instead of the policy eventually becoming worthless, or being limited to the policy’s existing and perhaps low cash value, they instead get a nice, current cash settlement in excess of the policy’s cash value.

Insurance companies hate the life settlement industry because it means fewer policies that lapse before the death benefit is paid, thereby reducing the life insurance companies’ profitability that traditionally anticipates high lapse rates.

Insurance companies would instead prefer (greatly prefer) that the policy owners simply surrendered their policies for the cash value of the policies, thus creating a windfall for them since the amounts paid during the life of the policy for “death benefits” turned out to be free money to the insurance companies.

Now it time to not let your policy lapse or surrender, contact us to see the value of your policy through a life settlement. Call toll free 1-888-973-8377

You can also fill out our online life settlement policy evaluation form.

Life Settlement Tax Information

If the life settlement amount is less than the tax basis of the policy, there is not a tax liability. Generally, any amount received in excess of tax basis is taxable as ordinary income, capital gains, or both.

If the cash surrender value of the policy exceeds the policy’s tax basis, the difference between the cash surrender value and the tax basis will be taxed as ordinary income. The difference between the cash surrender value and the settlement amount may be taxed as a capital gain.

The individual tax circumstances of each client needs to be considered and you should reply upon you own enquiries as to such.

For more tax implication and information call toll free at 1-888-973-8377 or fill out our online policy evaulation form.

More seniors of now using their unwanted or under performing life insurance policies as fundraising tool for their churches or favorite charities. They are now using a Life Settlement Donation, below are the some benefits and reasons for a donation.

1. Making a donation to his/her favorite philanthropic organization without depleting cash reserves or losing income-producing assets;

2. Getting a tax deduction for the fair market value (selling price) of the life insurance policy instead of only the cash surrender value;

3. Being able to see their donation put to use during their lifetime rather than after their death if the organization did not utilize a Life Settlement;

4. Eliminating the requirement of continued premium payments on the policy;

5. Removing a taxable asset from their estate if the policy was individually held.

Please call 1-888-973-8377 for assistance or email us.