Selling Your Life Insurance Policy FREQUENTLY ASKED QUESTIONS
Q Is it OK to Sell and Buy Life Insurance Policies?
Yes. The life insurance policy is property of the contract owner once it is issued and put in force. This means that the policy owner has the right to dispose the policy after the contestability period is over. Options include • Holding onto the policy until maturity • Surrendering the policy for its cash value • Lapsing the Contract • Selling the policy for an amount higher than cash value, but less than the policy face amount
Q How Does a Life Settlement Work?
How it Works The insured or the contract owner, if different than the insured, submits an application to AFC. We then obtain an in-force illustration of the policy from the insurer showing the face amount and any outstanding loans or premiums due, as well as medical records from the insuredâ€™s physicians. After determining whether the insured meets the necessary criteria, an offer is made. If accepted, the Life Settlement transaction is documented and proceeds to closing. The policyâ€™s seller has the right to rescind the transaction within 15 days of the receipt funds so long as the purchase price and premium paid by AFC are returned prior to the end of the rescission period. Learn more.
Q Is the Process Confidential?
Yes. Everything is confidential. No medical, financial, or any other personal information will be disclosed to any other person without written consent, unless required by law.
Q What if I Change My Mind?
Itâ€™s OK to change your mind. AFC offers a 15 day rescission period. As the previous policy owner, you have the right to get the policy transferred back to you within 15 days of receiving your funds.
Q Is a Medical Exam Required?
No. AFC will obtain your existing medical information by contacting your physicians.
Q What About Future Premiums?
AFC will cover all future premium expenses after becoming the new owner.
Q Are There Restrictions on the Proceeds?
No. All sellers are free to use the proceeds as they wish.
Q What Type of Policy Will AFC Purchase?
AFC purchases most types of policies including: • Term Life Insurance • Universal Life Insurance • Whole Life Insurance • Joint Survivorship • Life Insurance • Group Life Insurance • Key-Man Life
Q How Long Does it Take to Complete the Transaction?
Our goal is to complete most transactions within 30 days. One of the most important factorâ€™s is gathering medical records. Obtaining complete and accurate data regarding the insured, seller, insurance company, and/or policy may take time and can slow down the transaction. AFC will keep in contact with the seller or sellerâ€™s representative constantly throughout the process.
Q How Much Will the Owner be Paid for the Policy?
The amount to be paid for the policy depends upon various factors. • Medical Condition • Age of the Insured • Amount of Future Premiums Due to Keep Policy in Force • Cash Surrender Value of the Policy *AFC has paid up to 80% of a policy's face value
Q Are There Any Costs or Obligations?
No. There is no cost or obligation to the seller.
For more information on selling your life insurance policy, please visit our website.
Asset Funding Corporation answers frequently asked questions about selling a life insurance policy.