Borrow against the cash value of the life insurance policy.
Instruct the life insurance carrier to cash out the policy, based on the available cash surrender value.
Determine if the life insurance carrier offers an "accelerated benefits program" rider and if the insured is eligible.
Sell the life insurance policy in a viatical or life settlement.
Borrow from friends or family using the life insurance policy as collateral to secure the loan.
A combination of an "accelerated benefit" and a viatical settlement may be possible and might net more cash than either by itself!

Viatical Settlements
Individuals have been selling or trading their ownership of life insurance policies since the very beginning of the insurance industry. This, however, was a relatively unknown practice until the AIDS epidemic heightened in the late 1980's. As policyholders stricken with the disease learned that there was a living value to life insurance, the Viatical Settlement Industry was born.

After a decade of industry growth, legislation, and regulation, viaticals have become an important financial option to many terminally-ill individuals. By selling a policy, many of these policyholders can ease the financial burdens brought on by increased medicals costs and compensate for their loss of income due to illness.

Benefits to Insured's / Policy Owners

Immediate Cash to Ease Financial Burdens
Additional Money to Compensate for Loss of Income
Relief of Monthly Premium Expenses
Funds to Seek Treatments Not Covered by Health Insurance
Funds to Pay off Debts Now, Instead of Burdening Family Members in the Future
Settlement Income May Be TAX-FREE!!!
Viatical Settlement Qualifications

Only non-contestable life insurance policies are considered.
Insurance Company must be rated B+ or better.
Minimum face value of $50,000 - NO MAXIMUM. Lower face values are considered if multiple policies total over $50,000.
All types of policies qualify, including term, whole life, universal life, joint-survivorship, group, corporate-owned policies (COLI), key-man, and life policies held in irrevocable life insurance trusts.
Policy Owner may be the insured, a company, a family member, a charity or any other entity with an insurable interest in the life of the insured.
Insured's Health Status:
Terminally-ill individuals with limited life expectancies of 5 years or less are considered.
Terminal illnesses may include cancers, heart disease, AIDS, Alzheimer's disease, ALS, or any other life threatening disease.
Copies of medical records are obtained for verification of health status. NO MEDICAL EXAMS ARE REQUIRED!

Life Settlements (Senior Settlements)
Whether you call it a Life Settlement, Lifetime Settlement, or High Net Worth Transaction, Senior Settlements have become a very important factor in the estate planning for seniors. By liquidating a policy for an amount higher than the cash surrender value, policy owners can take advantage of important financial opportunities with the proceeds of an unwanted, unaffordable or obsolete life insurance policy.

Benefits to Policy Owners

Higher cash payout than the cash surrender value
Generate profit from a non-performing & often worthless asset.
Relief of monthly premium expenses
Alternative funding for LTC policies, annuities or other investments
Additional funds to supplement retirement income
Funds to Seek Treatments Not Covered by Health Insurance
Funds to cover long term care
Senior Settlement Qualifications

Only non-contestable life insurance policies are considered.
Insurance Company must be rated B+ or better.
Minimum face value of $250,000 - NO Maximum. Lower face values considered if insured has shortened life expectancy, or has multiple policies totaling over $250,000.
All types of policies qualify, including term, whole life, universal life, joint-survivorship, group, corporate-owned policies (COLI), key-man, and life policies held in irrevocable life insurance trusts.
Policy Owner may be the insured, a company, a family member, a charity or any other entity with an insurable interest in the life of the insured.
Yearly premiums should be under 5% of the policy's face value.
Insured's Health Status:
Seniors with limited life expectancies of under 10 years may qualify.
There must be a change in health or in table rating since the policy was issued
The general target age is 75 and above.
Please do not believe some ill-informed agents or brokers, healthy seniors do not qualify. Some type of health issues that limit the insured's life expectancy must be present.
Copies of medical records are obtained for verification of health status. NO MEDICAL EXAMS ARE REQUIRED!

Case Studies Viatical Settlements

Case 1
Mr. Myers is a 58-year-old engineer with terminal cancer. He was informed that he had two years to live. The family's medical bills and monthly expenses began to mount because Mrs. Myers could no longer work; she had to stay home to care for her husband. Realizing there was a $500,000 term life policy on Mr. Myers, their financial advisor informed them about viatical settlements.

Their advisor contacted Welcome Funds to begin the process. Due to the seriousness of his illness, Welcome Funds negotiated an offer of $350,000 to Mr. Myers. The couple used these funds to pay off their remaining mortgage and to hire a home care nurse. Mrs. Myers returned to work, which helped cover their daily expenses. At the same time, the couple no longer had to pay the $6,000 a year premiums, which freed up more cash for the couple.

Case 2
.Steve is a single male who was recently diagnosed with metastasized male breast cancer. He was lucky enough to have quality health insurance coverage, which would take care of the majority of his medical bills. Steve, however, wanted to try an experimental treatment that would not be covered by his health plan.

Steve decided to sell his $100,000 term policy in order to fund this alternative medical therapy. In just 4 weeks, Welcome Funds was able to negotiate a $71,000 purchase price for the policy. Steve was able to pay for his experimental therapy, while also having enough money left to go on a vacation.

Case Studies Life Settlements

Case 1
Term Conversion:
Mr. Wilson's 20-year term policy was reaching its conversion deadline. He was now 79 and was recently diagnosed with coronary artery disease. Mr. Wilson could not afford to convert the policy and letting his $250,000 policy lapse would leave him nothing.

Mr. Wilson applied to Welcome Funds and his policy was sold for $75,000. Mr. Wilson was able to recover all of the premiums he had paid into the policy, plus a handsome profit. He used the proceeds to pay off some debts, go on vacation, and add more funds to his retirement portfolio.

Case 2
Unplanned Health Change:
Dave was 76 and had just suffered a heart attack, which left him permanently disabled. His family was unprepared for this unfortunate turn of events. After learning of the Medicaid requirements and the cost of a care facility, the family was unsure how they were going to pay for his care.

Fortunately, the staff at the care facility offered the life settlement option to Dave's family when they found out about his $500,000 insurance policy. The family soon sold that policy for a $250,000 settlement, and eliminated the premium payments. These funds covered the three years Dave resided in the facility before his passing. The remaining moneys were distributed to Dave's original beneficiaries.

Case 2
Additional Insurance Needed:
An elderly couple had a $2.2 million policy held in an insurance trust that covered the wife. Due to savvy investing decisions, their estate had increased considerably and now the death benefit on the policy was inadequate. The premiums on this policy were also escalating and the policy was becoming outdated.

Their estate planner decided to sell the policy to help fund the purchase of a $4 million dollar joint survivorship policy. Welcome Funds was able to negotiate a $440,000 purchase price. Since the husband was in perfect health, the premiums on the survivorship policy were very affordable, even lower than the original policy.

Case 2
Key-Man:
A company owns a $4 million dollar policy on an executive who had retired 4 years prior. The surrender value was $440,000 and since the company no longer wished to make the $80,000 p/y premium payments, a surrender was being considered.

Their financial advisor immediately recommended a life settlement. The company was offered $880,000 for the sale of the policy and netted $800,000 after taxes, almost doubling the cash surrender value!

* In this case, the surrender value in the policy was lower than the $480,000 cost basis. Therefore, there was a capital gains tax of $80,000 on the $400,000 income generated (the difference between the settlement amount and the cost basis).

Feel free to contact us anytime for a free no-risk consultation toll-free at (877) 836-4661 or email us if you have any questions.