• Why Veris
• Management Team
• What is a Life Settlement?
• Why Offer Life Settlements
• Life Settlement Considerations
• Understanding Policy Brokerage
• Attorneys and Life Settlements
• CPA's and Life Settlements
• Charities and Life Settlements
• Testimonials
• Contact Us

• Life Settlement Parameters
• Policy Types
• Transaction Process
• FAQ
• Case Studies
• Glossary of Terms
• Articles and News
• Marketing Materials
• Case Submission Packages
• State Licensing Requirements
• Life Insurance Settlement Association Website

Frequently Asked Questions About Veris Settlement Partners

Q. What is a life settlement?
A. A Life Settlement is a sale of a life insurance policy where the insured is 65 years of age or older and does not have a terminal or chronic illness. In a life settlement transaction, the policy owner always receives more for the policy than the issuing insurance company will pay for the surrender of the policy.

Q. What types of life insurance policies can be sold?
A. Policies must have insureds that are at least 65 years of age and need to have a Face Amount of at least $100,000. Types of policies eligible include: universal life, term life (if convertible), whole life, variable life, and variable or universal survivorship/second to die.

Q. Are there any medical exams or application costs?
A. No. The application and appraisal process with Veris Settlement Parners, Inc. is free and no medical exam is required. The insured will only have to consent to having their medical records can be reviewed.

Q. What determines the price offered for a policy?
A. The amount to be paid to the owner of the policy will depend upon a number of factors, including the medical condition of the insured, the amount of premium payments to keep the policy in force and the cash surrender value of the policy.

Q. What is the process of the life settlement transaction?
A. An application is submitted to Veris Settlement Partners, Inc. We will obtain an in-force illustration of the policy from the issuing insurer showing the Face Amount and any outstanding loans and premium due.

Veris also obtains copies of the insured’s existing medical records from the insured’s physicians. No medical exam is necessary for the insured. We then package this information and submit it to multiple life settlement providers to establish a competitive marketplace and obtain the highest possible offer.

Once an offer is made and accepted, the life settlement transaction is documented and proceeds to closing. The settlement provider will deposit settlement amount with an escrow agent or trustee. The money will be sent within three business days of the date that insurance company confirms to the provider that the transfer of policy ownership has been completed.

Q. How long does it take to complete a life settlement transaction from start to finish?
A. Our goal is to complete most transactions in 90-120 days. The life settlement providers need to review medical records carefully and sometimes obtaining these records may take some time to accomplish and can slow down the transaction process.

Q. After the policy is sold, how will the buyer know that the insured has passed away?
A. Life settlement providers employ a number of techniques to determine the insured’s status. For example, most use the Social Security Administration’s public database, which “frees up” a social security number when someone dies. They will also periodically call a person designated by the insured to inquire as to the insured’s health status. Most states prohibit the providers from contacting the designated contact more that four times per year.

Q. What if I change my mind?
A. If you change your mind about selling your policy, most states have a rescission period after you receive the money from the provider. The guidelines for any rescission period will be explained in detail in the Life Settlement Purchase and Sale Agreement, which can vary on a state-to-state basis.

Q. What if I die shortly after selling the policy?
A. After you receive the money from the provider, if you die at any time during any rescission period (which would be explained in detail in the Life Settlement Purchase and Sale Agreement), the settlement contract will automatically cancel. The provider will pay the owner of your policy or beneficiaries designated by the owner in the life settlement contract any proceeds it receives from your policy, minus any money it already paid for the purchase of your policy and any premiums it paid to the insurance company to keep your policy current. The insurance company or the provider should refund any unearned premiums paid.

Q. Are the proceeds from the life settlement taxable?
A. The proceeds from a life settlement are generally tax free up to the amount of the premiums paid for the policy. The difference between that amount and the cash surrender value is generally taxed as ordinary income. Amounts received in excess of the cash surrender value are generally taxed as a capital gain. We strongly encourage sellers to consult their own tax and financial advisor before completing a transaction so that they can determine the tax impact from the sale.

Q. What is the difference between a life settlement broker and a life settlement provider?
A. Although both a broker and a provider are instrumental participants in the sale of your policy, there are important differences between them. A broker works for the policy owner. The broker’s job is to “shop” the owner’s policy to multiple providers and create a competitive environment that ensures that the owner receives the best offer possible. A provider works on behalf of the institutional investors that they represent. Their objective is to purchase your policy for the lowest price possible and maximize the return on investment for their investors.