What are the tax consequences of a Senior Settlement?
September 30, 2005 by Administrator

You are urged to contact your financial adviser or tax professional to learn what taxes might apply.

However a Life Settlement transaction taxes might include:

Some generalizations can be made, however. If the policy owner has a documented life expectancy of under two years, the settlement qualifies as a Viatical and is usually tax-free.

If your life expectancy has been determined to be more than two years, your Life Settlement may be subject to state and federal tax. Capital gains tax and ordinary income Tax may apply.

If you give part or all of the proceeds to an individual while you are alive, or if you transfer ownership of your policy to that individual, the individual may have to pay gift tax for amounts in excess of the tax exemption amount(currently $11,000, except for gifts to a spouse, which is unlimited)

The Cash Surrender Value of a policy, determined by your insurance company, is key to calculating your tax liability.

If your Cash Surrender Value exceeds the amount that you have paid in premiums for the policy, that excess can be taxed as ordinary income.

Get a Senior Settlement Quote.

Call 1-888-973-8377 with any questions.

New Life Insurance Options
September 29, 2005 by Administrator

Life insurance policies from individuals 65 and older can be sold for a lump sum cash payment. This type of transaction is called a Life Settlement, Life Insurance Settlement, or a Viatical Settlement which is broken down into either a Insurance Settlement or Viatical Risk.

In the past, an under performing life insurance policy has had very few options such as lapsing or taking out the cash surrender value within a policy. A Life Settlement satisfies the need to get cash from your life insurance policy today with the satisfaction of no longer paying on premiums tomorrow. The cash payout is larger than the cash surrender value.

Do not let your policy lapse or surrender, contact us at 1-888-973-8377 for a free policy evaluation.

Viatical Settlement Investments
September 26, 2005 by Administrator

Sen. Usie Richards amended the bill Thursday to give the GERS board another investment option – viatical life and senior settlement policy contracts, investments in which the investor buys insurance policies from terminally ill or old people for a percentage of the total policy. The investor pays the premiums and receives the policy payout when the beneficiary dies. This same amendment was vetoed by Gov. Charles Turnbull when it was added to a bill appropriating funds for cultural celebrations in May.

Sell your Life Insurance policy for cash
September 23, 2005 by Administrator

Get a Life Settlement Today!

If so, and if you qualify, we can help you get a cash settlement for your life insurance policy and at the same time eliminate your expensive monthly premiums. Whether you need immediate cash to supplement your retirement income, would like to buy a second home, or need to deal with medical expenses or long term health care, we can help. We’ll show you how to quickly sell your life insurance policy for more than the “cash value” offered by your insurance company, with no stress and no obligation. Don’t keep paying high premiums for coverage you no longer need, and don’t surrender the policy or allow it to lapse (and forfeit years of paid premiums) without calling us first at 1-888-973-8377.

Also feel free to fill out our FREE online quote form!

Coventry First Calls on Secondary Life Insurance Market to Donate $1 Million to Katrina Relief Efforts
September 23, 2005 by Administrator

Industry Leader Kicks Off Effort with $100,000 Contribution

FORT WASHINGTON, Pa., Sept. 23 /PRNewswire/ — Coventry First, a pioneer in the secondary market for life insurance, today put out an urgent call to its industry counterparts to contribute a minimum of one million dollars to support local recovery and rebuilding efforts on the Gulf Coast. As a sign of its commitment to the cause, Coventry First announced that it is contributing $100,000 to jump-start the effort. As an added measure of support, the company will match employee contributions dollar-for-dollar.

“Our hearts go out to the people of the region, who have endured the unimaginable,” said Constance M. Buerger, President and Chief Operating Officer. “We are still shocked at the magnitude of this tragedy and feel it is our obligation to support the relief efforts financially and otherwise. We are confident others in the industry will join in the effort to help these brave people rebuild their lives and their communities.”

Coventry First is providing immediate assistance and long-term family restoration to Louisiana’s citizens through the Louisiana Disaster Recovery Foundation. In Alabama, contributions will help find long-term housing for people who lost their homes and to cover the unmet needs of victims of the storm through Operation Golden Rule.

This initiative is the latest in the largest relief and response effort in the history of the United States, as corporate and private citizens continue to contribute millions of dollars to help restore this vital region of our nation.

Source: Yahoo!

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