FREQUENTLY ASKED QUESTIONS

• + What is a Life Settlement?
• + What types of life insurance policies can be sold in a Life Settlement?
• + Is my policy too big to sell?
• + What are the policy ownership or coverage restrictions?
• + How much will I receive for my policy?
• + Will Life Guardian consultants help me to find the highest possible payout for my policy?
• + Who makes the remaining premium payments?
• + Are there limits on how I use my Life Settlement payout?
• + What happens when I call?
• + How can I start the process?
• + How much does the qualification process cost?
• + Are the proceeds taxable?
• + Can you supply information about viaticals?
• + How does a "Senior Settlement" differ from a "Life Settlement"?
• + What is a Qualified Institutional Buyer (QIB)?
• + What about my survivors? Aren't I taking something away from their inheritance?

What is a Life Settlement?

A Life Settlement is a powerful financial tool available to qualifying seniors who want to turn an unwanted life insurance policy into cash, which is available when it's most important—today.

What types of life insurance policies can be sold in a Life Settlement?

You can sell almost any type of life insurance policy with a Life Settlement, including term, universal life, whole life, key-man, and survivorship policies.

Is my policy too big to sell?

There is absolutely no limit on the size of the policy you can sell.

What are the policy ownership or coverage restrictions?

You don't need to be the insured party when seeking a Life Settlement. If you've taken out a life insurance policy for a family member, and you would now like to sell the policy, you may do so. The policy holder can be an individual, a corporation, a charity, or a trust.

How much will I receive for my policy?

Health, age, and future premiums are the most significant factors when determining how much you will receive for your Life Settlement. The competitive bidding process that there is no fixed method for determining an exact dollar amount. Life Guardian will do its utmost to help you receive more than your insurance provider’s Cash Surrender option, though it will be less than the full term payout.

Will Life Guardian consultants help me to find the highest possible payout for my policy?

Absolutely. When you return your qualified application, Life Guardian will consult with over sixty Life Settlement providers. These providers will engage in a competitive bidding process to buy out your policy.

Who makes the remaining premium payments?

Whoever buys your policy makes the remaining premium payments. You are completely free from any obligation to the life insurance policy or the insurance provider once you receive your Life Settlement.

Are there limits on how I use my Life Settlement payout?

Absolutely not. That's the whole idea. You make all the decisions regarding your money. You can buy a new home or a new car. You can travel. You can cover the costs of medical treatments. You can make cash gifts to your family and friends. A Life Settlement offers you the chance to do all the things you've wished but perhaps couldn't afford. In other words, it offers you the chance to eliminate regrets.

What happens when I call?

When you call our toll-free number, you’ll first speak to a Life Guardian operator, who will pre-qualify you to receive your free information kit, educational DVD, and preliminary application. When a Life Guardian affiliate receives your application, they will contact you to discuss the particulars of your life insurance policy. Your policy will then be bid on by over sixty Life Settlement providers. We’ll give you the best possible offer, and then you decide if the Life Settlement is right for you.

Remember, there are no obligation to accept the offer. It will be presented as an option. How you choose to proceed is entirely up to you.

How long does the process take?

Once we've received your application, and you've spoken with one of our consultants to discuss your unique circumstances, the application immediately goes into the bidding process. The usual turnaround time for a final offer is one week, and payment depends on your acceptance of the offer. Once you've accepted the offer, you'll usually see payment with 4-6 weeks.

How can I start the process?

Just call our toll-free number. Our operators are ready to qualify you today!

How much does the qualification process cost?

Nothing. The costs of processing, handling, and transfer are covered by the purchasing party. There is absolutely no charge to you.

Are the proceeds taxable?

Because the money from a Life Settlement qualifies as income, it may very well be taxable. The taxation of Life Settlement money is complex. We recommend that you speak with your tax advisor or accountant to determine the best tax strategy for your funds.

As a general rule,

*The money is tax-free up to the amount invested in the policy.

*Money exceeding your invested total, but less than or equal to the offered Cash

Surrender Value, is treated as income.

*Money exceeding the Cash Surrender Value is treated as capital gains.

Please remember, this is only a general rule. You should speak directly with your tax advisor or accountant concerning the taxation of your Life Settlement payout.

Can you supply information about viaticals?

No. Life Guardian deals exclusively with Life Settlement applications. Although they are similar to Life Settlements, viaticals are governed by different rules and restrictions.

How does a "Senior Settlement" differ from a "Life Settlement"?

There is no difference. When referring to life insurance policy buy-outs, "Senior Settlement," "Insurance Settlement," and "Life Settlement" mean exactly the same thing.

What is a Qualified Institutional Buyer (QIB)?

A Qualified Institutional Buyer, or a QIB, is an investing entity—an individual, a corporation, or a trust—with substantial securities (usually between 10 and 100 million dollars) available for investing. All buyers affiliated with Life Guardian are QIBs, which ensures maximum protection for you, our client. This also allows us to obtain the highest possible dollar value for your policy.

What about my survivors? Aren't I taking something away from their inheritance?

Senior financial planning is about choices. We encourage you to involve your family and friends in making this decision. More often than not, they will tell you what we've heard over and over again: your comfort and freedom are more important to your potential beneficiaries than a cash payout after you've died.

What you do with the money from a Life Settlement is entirely up to you. You may even decide to use the money to cover the same costs that a traditional life insurance payout would. What a Life Settlement offers, which a traditional policy can't, is the chance to enjoy your life now. A Life Settlement lets you and your family make decisions right now to ensure that you enjoy your retirement years to the fullest. Furthermore, if you invest the money from your Life Settlement, you may be able to give your family and friends an even greater gift than a traditional life insurance payout would allow, and most importantly, you'll be there to enjoy it with them!