Eligibility & Our Strategic Process
01
Eligibility Review
02
Typically appropriate for policyholders aged 70 or older with a policy value of $100,000 or more.
Policy Appraisal
03
Secure Market Offers
04
We perform a detailed valuation to determine the possible secondary market value of your insurance policy.
We engage with licensed providers to find the highest market offers while you maintain full control of the choice.
Closing & Funding
Once accepted, the policy is transferred and you receive a lump-sum cash payment directly to your account.
Strategic Benefits
-
Unlock Policy Value: Receive a lump sum payment significantly higher than the cash surrender value.
-
Eliminate Premiums: Free up monthly cash flow by transferring the responsibility of future premium payments to the buyer.
-
Retirement Funding: Use proceeds to supplement retirement income or cover immediate healthcare costs.
-
Legacy Management: Reallocate capital into more efficient assets that better align with your current family goals.
Important Considerations
-
Tax Implications: A portion of the settlement proceeds may be subject to federal or state income tax.
-
Entitlement Impact: Receiving a lump sum could affect eligibility for public assistance programs like Medicaid.
-
Reduced Death Benefit: Selling a policy means your beneficiaries will no longer receive the full death benefit upon your passing.
-
Transaction Costs: Be mindful of fees associated with the appraisal and closing process before proceeding.
Frequently Asked Questions
Valuation depends on several factors, including the policy's face value, the cost of future premiums, and the insured's health status. Typically, settlements range from 10% to 25% of the death benefit, though every case is unique.
How much is my life insurance policy worth in a life settlement?
How long does the life settlement process take?
The timeline can vary, but generally, it takes between 3 and 6 months from the initial appraisal to receiving the funds. This includes document collection, medical reviews, and state-required rescission periods.
What happens to my information during the appraisal?
At Marrs Financial Services, we adhere to strict confidentiality and privacy standards. Your personal and medical information is secure and only shared with licensed providers and medical underwriters required to conduct a professional valuation.
