Thornbush - Life Equity Corp.

A life settlement is a transaction in which a life insurance policy is sold to a third party for an amount greater than the policy's cash surrender value. The purchaser becomes the new owner and beneficiary of the policy, pays the premiums and eventually receives the death benefit.

What are the steps in a life settlement?

The first step is to fill out an application. We'll take it from there. We'll evaluate your circumstances and if you are one of the fortunate few, we will prepare an offer with various options that fit your unique situation and goals. Total time can take from three to ten weeks.

Why would anyone sell his or her life insurance policy?

Circumstances change constantly throughout one's life and the reasons that originally led one to buy a life insurance policy may change over time. Sometimes a policy is no longer needed because of changes with a beneficiary, or premiums may no longer be affordable, or a thousand other reasons. Life settlements have given seniors a new way to receive cash for policies and that cash can make a huge difference in their lives.

How much can I expect to receive?

There are many factors that affect the value of a policy. Although there is no simple answer for what one may expect for any single policy, our proprietary process is engineered to ensure maximum value to the seller. Our offer will always be substantially higher than the cash surrender value offered by the insurance company.

What types of life insurance policies can be sold?

Almost all individual or group policies with a face value of $250,000 or more may be sold � including Term Life policies. The specific policy must have no restrictions on the transfer of ownership of the policy, and all parties must agree to the transfer.

What if I have a loan on my policy?

We can often make an offer even if there is already a loan against a policy.

What happens after a life insurance policy is sold?

When a policy is sold, all rights and obligations of the policy are transferred to the buyer. The buyer becomes the beneficiary, continues the payment of premiums, and eventually collects the death benefit. The seller is under no further obligation and may use the proceeds in any way he or she chooses.

Am I responsible for my premiums after I sell my policy?

After a policy is sold, the seller is no longer responsible for premium payments.

Are there any medical exams?

Assuming the insured has seen a physician within the last six months, no additional medical exams should be required.

Is the process confidential?

All of your information will be strictly safeguarded according to the rules of the Federal Health Insurance Portability and Accountability Act.

Death Benefit

The payment to the beneficiary of a life insurance policy upon the death of the insured individual.

Insured

An individual whose life is covered by a life insurance policy.

Insurability

An individual's ability to qualify for life insurance as determined by various life insurance companies.

Life Settlement Broker

A company or individual that represents a life insurance policy owner and negotiates the best deal for the policy owner in the sale to a life settlement provider.

Life Settlement Provider

The company that buys the life insurance policy in a life settlement.

Non-Contestable Policy

After two years from origination, the insurance company can no longer contest a policy if it believes the information originally provided by the insured was inaccurate. Such policies that are past the two-year anniversary of origination are said to be Non-Contestable.

Origination

The creation of a new life insurance policy for an individual.

Period of Contestability

During the first two years after a new policy is originated the insurance company may contest the validity of the policy if it is determined that any of the information provided by the insured was inaccurate.

Pre-Application

The initial information-gathering process used to determine if life settlement is a viable option for an individual.

Premiums

Periodic payments made to an insurance company to keep a policy in force.