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1) Why should I consider a Senior Settlement on my life insurance policy?
While every individual's needs are different, a Senior Settlement should be considered when there has been a change in your financial picture since the policy was purchased.
Here are some of the more common reasons to investigate a Senior Settlement:
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The policy is no longer needed or wanted and you intend to lapse or surrender the coverage. |
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The policy is underperforming and you wish to replace it with more efficient life insurance coverage. |
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You need to increase or decrease your coverage as a result of changes in your financial or estate planning needs. |
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A loan secured by the policy has been paid in full. |
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The company continues to maintain the "key man" insurance on a retired officer. |
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Selling your life insurance policy and protecting your family need not be mutually exclusive. The issue is to balance your needs today with future needs of your family. There are many strategies that you can employ to meet both objectives. We will be happy to discuss options with you.
2) Can I change my mind?
Absolutely! Completing an application does not create a contract that commits you to selling your policy. The application merely allows Wilbanks & Associates to collect and verify information necessary to determine if you can sell your policy and the amount to sell it. You have the right to reject any offers. With most vendors, you can resend the transaction within 15 days of receipt of funds.
3) Once the transaction is complete, who pays the premiums?
All future premiums are paid by the Senior Settlement Provider purchasing your policy.
4) Are there any provisions in my policy that could prevent me from engaging a Senior Settlement?
Most life insurance policies contain a contestability and suicide exclusion period that extends, typically, for two years. The contestable period is a window within which the insurance carrier can challenge or rescind the individual's life insurance coverage (usually for either misstatement or medical fraud related to the application).
The suicide exclusion is a defined period within which the insurance carrier can deny a claim concerning death by suicide. Many Senior Settlement providers prefer that a policy be in force for at least two years before considering the purchase of a policy.
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5) What are the tax implications of a Senior Settlement?
We recommend you speak to a tax advisor regarding this issue. Typically, any amount you receive in excess of the cash surrender value would receive preferential tax treatment as capital gains. Viatical Settlements, the prototype from which Senior Settlements were developed, are tax-exempt.
6) Do I qualify for a settlement with all Senior Settlement companies?
Probably not. Each Senior Settlement company has its own underwriting criterion that must be met before considering the purchase of your policy. Since the criterion can vary dramatically from company to company, most likely you will not qualify for a settlement with each provider.
7) Why should I consider utilizing Wilbanks & Associates to assist me with a Senior Settlement?
Since Wilbanks & Associates is not a Senior Settlement company, but rather acts as a client representative, we have contracts with almost all of the Senior Settlement providers in the industry. We use our vast knowledge and experience to search for the source that can provide you with the highest settlement amount.
8) Will Wilbanks & Associates charge me for its services?
At no time will you be billed or will Wilbanks & Associates charge you a fee. The easiest way to understand how we are compensated is to understand the relationship between travel agents and airline carriers. Airline carriers build in compensation to travel agencies to take over certain functions, such as booking airfares. The agent, then, has the ability to shop among airlines for the best rates for its clients.
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