What is a Life Settlement?
A Life Insurance Settlement is the sale of an existing life insurance policy for a lump-sum cash payment. When a policy is sold, the purchaser assumes the burden of making future premium payments and receives the eventual death benefit. In recent years, a thriving secondary market for life insurance policies has developed among institutional investors. Cresta Life Settlements has established relationships with more than 20 of these institutional buyers and is skilled at facilitating a highly competitive bidding process among them. The sole purpose of this bidding process is to obtain the highest possible Life Settlement payments for your policy.
What is a Viatical Settlement?
A Viatical Settlement is essentially identical to a Life Settlement, in that a current life insurance policy is sold for a lump-sum cash payment. In a Viatical Settlement, the transaction involves a terminally or chronically ill policyholder, while a Life Settlement involves a policyholder who is not. Cresta does not currently facilitate the sale of Viatical Settlements and does not solicit the sale of Viatical Settlements. If you are terminally or chronically ill, Cresta would be honored to put you in contact with one of the country's most respected Viatical Settlement Brokers. Please do not hesitate to call us for a referral.
Who qualifies for a Life Settlement?
Life Settlements are most beneficial to those 65 or older who have experienced a shift in their well being. The death benefit (face amount) of the policy can be as little as $100,000 or as great as $50 million.
What types of policies qualify for a Life Settlement?
Most types of life insurance policies qualify, including whole life, universal life, term life and group life*. Policies may be owned individually or through an outside trust, business, corporation, foundation or non-profit organization. To learn if your policy qualifies for a Life Settlement, call Cresta Life Settlements at 1-805-456-8100. There is no cost or obligation for this call.
* Cresta Life Settlement does not currently facilitate the sale of variable life policies and does not solicit the sale of variable life policies.
Why would someone want to sell their life insurance policy?
There are many reasons to consider selling your life insurance policy. Life Settlements are a valuable tool for policyholders who believe their current policy has become unnecessary due to changes in the owner's personal or financial conditions. You may wish to consult your family attorney, accountant or financial advisor before making this important decision. However, the decision to sell one's policy is normally motivated by a desire to convert the stored value of the policy into current cash. Additionally, the following reasons are often cited for a Life Settlement:
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To receive funds for a policy you no longer need;
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To receive more money than the cash surrender value of a policy;
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Premiums are no longer affordable;
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Funds are needed to pay for medical expenses;
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Funds are used to pay off debts;
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To obtain funds for a long-term care policy;
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The beneficiary is deceased;
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The policyholder holds multiple life insurance policies and wishes to sell one or more;
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To replace an individual policy with a more affordable and efficient survivorship policy;
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To upgrade to a more modern, efficient life insurance policy;
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Changes in the policyholder's estate eliminate the need for the policy;
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A key-person policy (designed to protect a company from the financial loss of an executive) is no longer necessary.
Recent Example of a Life Settlement
What is the process for Selling a Life Insurance Policy?
Cresta Life Settlements makes the process of selling your insurance policy safe, simple and convenient. Cresta works with over 20 financial institutions and will facilitate a highly competitive bidding process among these institutions. This process ensures that you obtain the highest possible Life Settlement payment for your policy.
The process may take as little as 30 days or as long as 90 days. The time frame can vary depending on how long it takes the doctor and insurance company to submit their required information.
Step by step process:
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We start by taking your confidential application over the phone or through the mail – Now your work is done.
Cresta will obtain all necessary medical and insurance records needed to process your application. No medical examinations are needed and there are no administrative tasks for you to perform.
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Cresta's underwriting team reviews and confirms your eligibility and submits your case to the largest possible universe of funding sources.
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Cresta facilitates the bidding process with over 20 institutional funding sources to ensure that you receive the highest possible Settlement offer.
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Upon completion of the bidding process, Cresta presents the highest offer to you for your review.
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Upon acceptance by you, a Purchase & Sale contract is prepared.
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At that time, a third-party escrow account is established for your protection.
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Upon signing the Purchase & Sale contract, policy ownership and beneficiary rights are transferred through this escrow account to the policy purchaser.
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Settlement funds are transferred to you.
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The policy seller has the right to change his/her mind for 15 calendar days (30 in some states) from the date the settlement proceeds were received. The details about the Rescission Period will be detailed in the Purchase & Sales Agreement.
Do I have to sell all of my policy?
No. You do not need to sell your entire life insurance policy. If you prefer, you may sell – through a legal assignment – a portion of your policy only.
How much money will I receive for my policy?
Your policy may be sold for a substantial cash Settlement. There are many factors that influence Settlement amount, including: your age, health, type of policy, its face value and premium amount. Cresta stands ready to conduct a competitive bidding process to ensure you receive the highest possible cash Settlement. For a confidential evaluation of your policy call Cresta Life Settlements at 1-805-456-8100 to speak with a senior Settlement specialist.
Recent Example of a Life Settlement
How long does it take?
Standard processing time from taking your application to funding your Settlement may be as little as 30 days or as long as 90 days. If proper medical records and an original copy of the insurance policy are provided the process can be expedited. The time frame will vary depending on how long it takes the doctor and the insurance company to submit the required information.
What is the cost to sell my policy?
There is absolutely NO-OUT-OF-POCKET COST to you for any of Cresta's services.
There is:
• NO application fee;
• NO administrative fee;
• NO legal or escrow fees;
• NO bidding management fees.
If you choose to accept an offer from a Life Settlement Company, Cresta Life Settlements is paid by the purchaser of your policy for facilitating the transaction. When your policy is sold, you receive a Settlement check that is 100% yours to spend in any way you choose. You never make any payment to Cresta.
Is a medical exam required?
No, a medical examination is not required, although the Life Settlement process does involve a review of your medical records. If you are unfortunate enough to be in poor health, you can take comfort in knowing this may help you to receive an even higher current Settlement amount. The Settlement check you receive can be used to pay for medical costs, nursing care, or any purpose whatsoever.
What are the tax implications for selling my policy?
Please note that Cresta Life Settlements does not provide specific tax counsel and the tax treatment of your Settlement should be discussed with your own tax professional.
What are the alternatives to a Life Settlement?
Your insurance company may offer alternatives, such as accelerated death benefits, policy loans, and surrender of the policy for its cash value. Cresta Life Settlements wants you to receive the optimum financial result—regardless of where it comes from—so we encourage you to contact your insurance company to learn more about these options. Once you have decided on a Life Settlement, Cresta stands ready to assist you in receiving the absolute highest value for your policy.
What other factors should I consider before selling my policy?
It would be wise to keep several factors in mind:
• The amount of premiums you pay;
• You may lose coverage on your spouse or other family members if the life insurance policy covers their lives as well;
• Your eligibility may be compromised for government assistance programs (such as supplemental Social Security Income, state or local welfare payments and public medical services, including Medicaid);
• Policy cash values or dividends;
• You may incur tax consequences;
• A loss of other rights or benefits, including conversion rights and waiver of premium benefits that may exist under the your policy; and The money you receive from a Life Settlement could be exposed to legal actions by creditors, trustees in bankruptcy and/or receivers in state or federal court.
Cresta Life Settlements wants you to learn all the facts before making the important decision to sell your life insurance policy. Consequently, we encourage you to communicate with your personal legal and financial advisors.
What if I change my mind?
There is never any obligation to complete the Settlement process. You can delay or cancel the process at any time. Finally, for your ultimate protection, you can change your mind up to 15 calendar days (30 days in some states) after receiving your Settlement proceeds, as you enjoy a full right of rescission to have the policy transferred back to you. The guidelines for the rescission period will be explained in detail in the Life Settlement Purchase & Sale Agreement.
How do I get started?
Getting started is as simple as picking up the phone. Call Cresta now at 1-805-456-8100 for a FREE, NO-OBLIGATION consultation with a Life Settlements professional. We'll answer any questions you may have and help determine if a Life Settlement is right for you. So call Cresta now, for a Second Chance…on Life.
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