- How much money can I expect to receive for the sale of my policy?
The amount of money offered by a life settlement buyer for the purchase of a life insurance policy is affected by a number of factors. Some of these factors include the age of the insured, the specific type of life insurance policy, cost of future premiums, health status of the insured, the insurance company underwriting the policy, market forces among buyers and sellers and the negotiations performed by the life settlement broker on behalf of the policy seller. On average, life settlements can generate many times more than the cash surrender value of the life insurance policy.
- How do I know I am receiving the highest value (offer) for my policy?
Policy sellers see all life settlement bids, all the time and are free to choose the one they feel is best. 100% transparency in the life settlement process provides confidence that a policy seller is getting the best value for their policy. AMG Financial Services strives to engage with the highest number of institutional buyers in the life settlement market. We enable consumers to see all bidders, each respective bid amount and potential commission refund available.
- Am I obligated to accept the offer from an institutional buyer?
No! Policy holders are in no way obligated to accept any offers from potential buyers.
- What if I change my mind and want to cancel a life settlement after I have received the money?
The "cooling off period" provided by NC law allows you to change your mind after you sign the sale documents. If you, as the seller, do change your mind, you must of course return the money received in the life settlement and reimburse the buyer for any premiums paid.
- What type of obligation do I have after I sell my policy?
After a life insurance policy is sold in a life settlement, there are few further obligations on the selling side. Of course, the buyer assumes the insurance premiums. However the buyer will periodically check on the health of the insured. This usually occurs 2 to 4 times a year. Some states have laws that limit the amount an insured may be contacted after a life settlement.
- Who will pay the remaining premiums after I sell the policy?
The buyer of your life insurance policy will continue to pay the insurance premiums. Once the policy has been transferred, the seller of the life insurance policy does not have ANY responsibility to pay the ongoing premiums.
- What if I still need life insurance coverage?
Life settlement proceeds can be used to purchase other life insurance producs including paid up life policies. Life insurance rates have been decreasing as a result of increasing life expectancies and insurance industry competition. Using the proceeds from a life settlement can often replace coverage with reduced or even paid in full future premiums.