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Life Insurance/Life Settlement

Life Insurance Alternatives

Through the planning process, you may decide that a life insurance policy may be advantageous to fund a business agreement, pay estate taxes, or offer additional financial security to those who depend on you. Because we have broad availability of some of the best policies from the top companies in the industry, we can help you identify the particular product that best fits your needs while providing you with the best value.

Life Settlement*

A Life Settlement is the sale of a life insurance policy by the policyowner in the secondary market at a price discounted from the face amount, but in excess of the cash surrender value. Sometimes the original planning needs have changed so that the policy is no longer needed. Premiums may have become too costly, and the original policy owner may want to eliminate the life insurance policy by letting it lapse. Now, the owner has another option. The policyowner may sell his policy just as if they were selling a stock or bond, or even their home. This secondary market gives the policy owner a market that did not exist in the past. In the past, the policyowner was left with one option to deal with and that was their own carriers. This great alternative allows the policyowner to obtain institutional, and real market pricing for this valued asset.

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*Investors should consult with their own professional advisor regarding the potential tax, estate, and legal considerations that may arise in connection with entering into a life settlements transaction. Proceeds from a life settlement transaction may be taxable under federal or state law to the extent the proceeds exceed the cost basis. The proceeds from a life settlement transaction may be subject to claims of creditors. The receipt of proceeds from a life settlement transaction may adversely impact eligibility for government benefits and entitlements. The amount received for the sale of the Policy may be impacted by the circumstances of the particular purchaser of the Policy, the insured’s life expectancy, future premiums, the death benefit, the terms of the Policy, and the current market for insurance policies, among other factors. The amount received for the sale of the Policy may be more or less than what others might receive for the sale of a similar policy. There may be high fees associated with the sell of a Life settlement.

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