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AMG Group of Companies
99 Jackson Street, No. 4629
Davidson, NC 28036

Office: 866.547.7009
Fax: 901.339.0285

Frequently Asked Questions

- How much does it cost me to do a life insurance settlement?
People selling an insurance policy should not incur any out of pocket expenses. The administrative costs associated with a life settlement transaction are paid for by the life insurance policy buyer. Policy buyers pay AMG Financial Services a commission for transacting the sale of a life insurance policy.

- 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.

- Is a medical exam required for a life settlement?
No medical exam is required. However, medical records will be evaluated and factored into the bids you receive. All information will be kept strictly confidential in compliance with the Health Insurance Portability & Accountability Act of 1996 (HIPPA).

- My life insurance policy has a "cash value" – what is that?
The amount that is available in cash for loans, withdrawals and/or premium payments.  Accessing cash value may reduce the death benefit and may increase the risk of lapse.  Withdrawals may be subject to surrender charges and could have a permanent effect on the cash value.  Loans reduce the cash value and death benefit by the amount of the loan outstanding plus interest.  If the policy is surrendered, the cash surrender value is paid to the policy owner.  

- Can I sell a life insurance policy that has no cash value?
Yes. Life insurance policies do not need to have cash value to be eligible for a life settlement.

- What is "cash surrender value"?
Cash surrender value
is the amount that an insurance company will pay a policy owner to surrender or turn in their unwanted life insurance policy. Cash surrender value of life insurance is essentially the amount an insurer will pay for someone to "walk away from a life insurance policy" they own and discontinue their insurance. This is an important concept to understand as it is one of the 3 options available to someone who no longer wants their life insurance policy.

- How does an accelerated death benefit differ from a viatical or life settlement?
An accelerated death benefit allows a portion of the death benefit to be paid from the insurance company to the insured. This option, which is not available in all life policies, would offer a partial payment when the insured has a terminal illness or severe medical condition. After the insured dies, the remaining death benefit will be paid to the beneficiaries. A viatical or life settlement is a one-time sale of the life insurance policy to a 3rd party buyer.

- What is the difference between a policy loan and premium financing?
Premium financing is a loan to a policy seller from a 3rd party company to pay the ongoing insurance policy premiums. While a life insurance policy loan is money that is borrowed by a policy owner FROM the cash value accumulated in a life insurance policy.

- What is a life settlement broker?
A life settlement broker is someone who represents a viator, also known as a policy seller or life settlor, in a life settlement transaction. A life settlement broker is a fiduciary representative of the policy owner who negotiates with buyers to achieve the highest life settlement possible. Some states, define a life settlement broker as: As person who is not a viatical or life settlement provider representative, and who for a commission or other form of compensation, or with the intent of obtaining such compensation.

- What is permanent life insurance?
Permanent life insurance provides ongoing life insurance coverage regardless of how long the policy has been in force. Unlike term policies, permanent insurance will stay in force as long as the premiums are paid and the insured is alive, depending on the terms of the actual insurance policy*. A permanent insurance policy will not stop providing insurance after a set amount of time like a term life insurance policy. Examples of permanent insurance are Universal life, Whole life and Variable policies. Often permanent policies can accumulate cash value in the policy which can be used by insureds for loans or to even pay some of the premium responsibilities.
*Endowment whole life policies pay the death benefit to an insured that reaches age 100.

- What is term life insurance?
Term life insurance is life insurance for a set amount of time. The coverage ends on a specific date which is specified in the policy. For example, term life insurance policies are often purchased for 15, 20 or 30 year terms. When that term is finished the policy no longer provides life insurance coverage. In some cases, the policies may have a provision allowing them, for a fee, to be converted to permanent life insurance.

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