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Life Settlements 101

What is a Life Settlement?

Your financial advisor or friends may have mentioned life settlements to you, but what is it all about? A life settlement is the sale of your existing life insurance policy at an amount higher than the cash surrender value, and thousands of individuals just like you have taken advantage of this option. Use the funds to cover living or medical expenses, take the trip of a lifetime, satisfy debts or simply relieve the burden of monthly premium payments.

  • A trusted solution for 1000s of individuals
  • Fully-regulated and safe
  • Designed to maximize cash payout to you
  • Only takes 2 minutes to begin

Seniors who sold their unwanted life insurance policies received on average more than four times the amount they would have received had they surrendered them for the cash value in the policies.

London Business School Study, 2014

6 Things A Life Settlement
Can Do For You

From relieving the burden of ongoing premiums to experiencing that once in a lifetime family vacation, there are many reasons why a life settlement is the right choice.

Get back money from past premiums

Life settlements enable you to recover some of the money you’ve paid in over the years instead of simply letting the policy go.

Give gifts to family

A life settlement provides you with the opportunity to build fond memories with your loved ones. Take the entire family to Disney World. Buy an RV and tour the nation for the summer with grandchildren. Take your children to see the country of their ancestors.

Emergency Funds

Emergencies happen – even after retirement. Sometimes people need to liquefy assets fast in order to gain access to cash. In these instances, life settlements can provide a quick and large influx of cash.

Tax benefits

Life settlements are only taxed on the amount above and beyond what you’ve paid in premiums, and even that is taxed at regular income tax rates rather than as capital gains. Consult your tax professional on your specific tax situation.

Fund Assisted Living or Home Health Care

The cost of care as we age is an often unplanned for expense. A life settlement can help fund your care or for that of a loved one including facilities, medical expenses, home health and hospice care.

Relieve the burden of monthly premiums

After a certain age, term life insurance premiums become unmanageable for people living on fixed incomes. That is one reason so many policies lapse each year rather than reaching full payout. Imagine not having to pay those premiums every month.

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Recent Settlement Examples

Life Settlement Example - Darryl received $283,000 offer

Darryl B. (78)

Boston, MA

Policy Value – $500,000
Offer To Purchase – $283,000

Offer Accepted

Gloria from Buffalo accepted an offer of $65,000

Gloria C. (83)

Buffalo, NY

Policy Value – $3,000,000
Offer To Purchase – $656,000

Offer Accepted

Kevin from Omaha accepted an offer for $15,000+

Kevin W. (67)

Omaha, NE

Policy Value – $100,000
Offer To Purchase – $15,700

Offer Accepted

Rebecca from Miami, FL

Rebecca C. (89)

Miami, FL

Policy Value – $750,000
Offer To Purchase – $379,000

Offer Accepted

Which is more valuable?

Your home? Or your life insurance policy?

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Frequently Asked Questions

Below you'll find answers to some of the most common Life Settlements questions.
Have others? Reach out to us at (443) 379-0190

A number of factors go into determining the exact worth of your policy and can include the terms of your policy, the payout benefit, the length of time you have held the policy, your age and health and the number of investors in the market at a given time.  Our goal is to secure you the most value for your policy and our advice and guidance is centered on this truth.  We act on your behalf in negotiations and encourage a competitive environment for the acquisition of your policy.

Your personal tax advisor knows best, but the good news is the IRS has been very clear when it comes to taxation and life insurance settlements.  In fact, the good news is you are only taxed on the amount above and beyond what you’ve paid in premiums and even that is taxed at regular income tax rates rather than as capital gains.

Simply put, the cash surrender value of your policy is likely significantly less than what you will be offered in a life settlement transaction. Insurance companies know that and that is why you don’t often hear about life settlement transactions.  Don’t leave money on the table.  Beco Life can assist you in a life settlement transaction that pays you fairly for your policy.

Privacy and data security are of the utmost importance to us.  Your information is safe and details of your policy are kept anonymous from investors and are only provided upon your approval.  We build our reputation one client at a time and the trust that you place in us is of utmost importance.

Since 1989, thousands of individuals just like you have taken advantage of life settlements.  Each of them likely had their own reasons and uses for the money, from a desire to recoup value from a lifetime of premiums to covering unexpected expenses related to medical care or assisted living.  You are not alone in your desire to pursue a life settlement and your experience may lead others to choose this option for themselves.

Life settlements are by their very nature complex transactions.  At Beco Life our goal is to get you the most value for your policy and to ensure that we cast a wide net to identify multiple investors interested in obtaining your policy.  From beginning to close can take anywhere from 6 weeks to 3 months, but starting the process today takes as little as 2 minutes.

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Viatical Settlements 101

What is a Viatical Settlement?

A viatical settlement is the sale of a life insurance policy in exchange for immediate cash payout which is well above the cash surrender value of the policy. The insured on the policy usually has a terminal illness with a life expectancy of under 24 months and as such, payouts tend to be larger than for life settlements. In 1996, the Health Insurance Portability and Accountability Act (HIPAA) was signed into law, making viatical settlements and accelerated death benefits tax-free for terminally ill insureds.

  • Clients have seen their policies sold for up to 60-70%% of the face value of the policy.
  • Viatical settlements have significant tax advantages
  • Accelerated underwriting

Our Mission

Did you know that more than 9 and out of 10 people (91%) allow their policies to expire before any benefits are paid out? Most people pay thousands of dollars in premiums over decades only to allow their policies to expire for a variety of reasons including –

  • No longer affordable due to increasing premium costs
  • No longer needed – kids already grown and self sufficient
  • Not fully understanding the value of their policies on the secondary market

Our mission at Beco Life is to get the number of policies that lapse to below 60% by 2022. An ambitious goal but doable through education and providing policyholders options that do not include paying ever increasing premiums.

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The Beco Life Difference

Absolutely No Fees! Investors pay for our services. Our business is 100% funded by fees charged to the investor.

We Pay For All Medical Underwriting And Actuarial Costs Rest easy knowing we will take care of the costs associated with determining the value of your policy.

Access To The Biggest Pool Of Investors Simply put, the more investors competing for your policy the more you can expect to receive.  We work hard to maintain the largest pool of investors around.

Completely Safe And Confidential We truly value the confidence you place in Beco Life and we take seriously the responsibility to protect and secure your data.

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