For Policy Sellers FAQ

What is a Life Settlement?

A Life Settlement is the sale of an existing life insurance policy to a third party for more than its cash surrender value but less than its net death benefit. Depending on the state, a Life Settlement usually refers to a transaction involving an insured who is not terminally or chronically ill, generally over the age of sixty (60).

Do I qualify for a Life Settlement?

If you have a life insurance policy with a face amount of $100,000 to $25,000,000, have had a change in health and are over the age of sixty you may qualify for a Life Settlement.  In some cases we will consider a terminally ill insured under the age of sixty and insurance policies under $100,000.  The best way to find out if you qualify is to complete our Pre-Qualification Application from the link below.

How do you determine the price of a policy?

The price of an insurance policy is determined by a number of different factors which include: the age and medical impairments of the insured, the cost of premiums payments to keep the policy inforce, the type of insurance policy and the rating of the insurance company.

What types of policies do you buy?

The most common types of policies that we purchase are universal life, survivorship, whole life, term and variable life.

After I sell my policy, am I restricted on how I can use the money?

No, there are not any restrictions on how you can use the funds you receive from selling your policy.

Are the proceeds of a Life Settlement taxable?

FMLS does not offer tax or legal advice.  You should consult with your own tax or legal advisors before entering into any transaction.

What are some of the reasons why I might consider the sale of my policy?

There are several reasons an insured may want to sell their insurance policy which include the following:
– The policy is no longer needed or wanted
– Premiums payments have become too expensive
– You may needs funds to help pay for medical costs
– Your estate planning needs may have changed


What happens to the policy after I sell it?

All rights and obligations of the policy are transferred to the new owner. You will no longer be responsible for making premium payments on the policy. The new owner will name a new beneficiary of the policy who will collect the proceeds upon the insured’s passing.

Is my personal information kept confidential?

Yes, all medical, financial and other personal information obtained during the course of the transaction is treated with the utmost confidentiality and will not be disclosed to any unauthorized party. FMLS requires that prior to releasing any personally identifiable financial or medical information to any party outside the company, confidentiality agreements are signed by all parties.


Are there costs involved?

There are no out of pocket fees for the seller.


Do I have any ongoing obligations after I sell my policy?

You will not have any obligations when it comes to future premium payments after you sell your policy, but you may need to provide an updated medical release form at some point.


How long does the life settlement process take?

The process normally takes anywhere between two and four months.