Colonial pays cash for senior settlements!

Additional Frequently Asked Questions

Do I have to sell their entire policy? No. Any portion of a policy can be sold with the remaining death benefit being kept in the name of the original beneficiary.

What type of purchase price should I expect from Colonial? There are many factors that come into play relating to the quote that you will be given by Colonial Settlement. It is very difficult to give an estimate prior to gathering all of the pertinent information. For example, two people with similar face value policies can expect to get different quotes based on age, length of ownership, health, surrender value, premiums remaining, outstanding loans and policy type. Offers can range anywhere from 10% to over 65% of the face value of a policy depending on the factors previously mentioned.

Are there restrictions on how the money from a Life Settlement can be used? No, the money can be spent as you wish.

Will I still need to pay premiums after the policy is sold? No, once the policy is sold, the funder will pay all future premiums eliminating any further financial obligation by your client.

What are the tax implications? Colonial encourages everyone to sit down with their personal financial advisor or accountant to look at the benefits and specific effects on their tax liability. In general, the difference between what Colonial offers and the current cash surrender value is taxed as capital gains. The difference between the premiums paid to date and cash surrender value, should there be one, will be taxed as ordinary income. Multiple nationally recognized accounting, consulting and legal firms have reviewed this position and support it.

What does the application process consist of and how do I get started? The application process is as simple as A, B, C!

Application - The client completes and returns our application. As soon as we get this information back we can start the initial appraisal process. The other forms give personal, policy-related, and the general medical history information.
Benefits – We need a current policy illustration from the insurance provider to show the benefits available.
Client - Prior to being able to offer a quote, copies of the client’s medical records for the last two years, including office notes, labs, pathology reports and possible x-rays need to be examined. Colonial will be available to assist your clients throughout the application process ensuring that we have obtained all of the necessary information. It is our goal to provide you with a quote and subsequent contract in a timely manner and to make sure that the application process is as simple and hassle free as possible. (ALL INFORMATION IS KEPT STRICTLY CONFIDENTIAL.)

What are my alternatives to a senior settlement? There are alternatives, and it's important to consider this information even though a life settlement is usually the best choice.

• You can continue to pay for the policy even though you do not need it.
• You can let your policy lapse at any time. Keep in mind that when a policy lapses you loose all the money previously paid in.
• You may be able to take a loan out against your policy. This is different from an accelerated benefit or living benefit. As you may or may not know, an accelerated benefit advances a portion of the death benefit, usually with limitations regarding life expectancy. The balance is treated as a life insurance policy and paid to the designated beneficiary after the death of the insured. Many insurance companies charge a percentage of the face amount as a processing fee, but this option is reserved for people with 12 months or less left to live, and we do not deal with terminally ill clients.
• You can cash out your policy on your own for the CSV if such an option exists. The CSV will be less that the life settlement appraisal value in almost every case.

How long does it take from submission of the application to funding? Once we have a complete packet of information, it normally takes one to four weeks for final processing. The biggest delay is the response from the insurance company acknowledging the change of ownership.

Curious to see how much your life settlement is worth? Contact us today for a free quote!