Frequently Asked Questions
Q:Is it OK to sell and buy life insurance policies?
A:Yes. Remember that once a life insurance policy is issued and put in force, it is the property of the policy owner. Much like any other asset, the policy owner has the right to dispose of the policy in any manner that he or she may choose after the contestability period has passed. Options may include holding the policy until maturity, surrendering it for its cash value, lapsing the contract or selling it for an amount higher than the cash value and less than the policy face amount.
Q:How does a Life Settlement work?
A:The policy owner submits an application and release forms to Emerald. Emerald will obtain a Verification of Coverage (VOC) from the insurer showing the face amount, premiums due and other various policy details. Emerald also obtains copies of the insured’s existing medical records from the insured’s physicians. No additional medical exams are necessary. Emerald reviews the records to determine if the insured meets the necessary criteria to make an offer on the policy. If/when an offer is made and accepted, purchase agreements are forwarded to the policy owner. Upon return of the completed agreement, ownership and beneficiary change forms are sent to the carrier. Upon written confirmation that the changes have been completed and recorded, that the policy’s seller receives the purchase price offered. The policy’s seller has the right to rescind the transaction within 15 days of the receipt of funds so long as the purchase price and any premium paid by Emerald are returned prior to the end of the rescission period.
Q:Is there any cost or obligation?
A:No. There is no cost or obligation to the seller. In fact, Emerald does not even charge an application fee.
Q:What type of policy will Emerald evaluate and purchase?
A:Emerald will purchase most types of policies including Term Life Insurance, Universal Life Insurance, Whole Life Insurance, Joint Survivorship Life Insurance, Group Life Insurance or Key-Man Life Insurance.
Q:Do I need to take a medical exam?
A:No. Emerald will contact your physicians for existing medical information.
Q:How long does it take to complete the evaluation?
A:Emerald’s goal is to complete most transactions within 4-5 weeks. The most significant factor is the gathering of the insured’s medical records. Sometimes, obtaining complete and accurate data regarding the insured, seller, insurance company and/or policy may take some time to accomplish and can slow down the transaction. Emerald works diligently to expedite the process and will keep in constant contact with the seller or seller’s representative throughout the entire process.
Q:Is the process confidential?
A:Yes. All Emerald personnel are guided by the highest standards of privacy and confidentiality. No medical, financial, or other personal information about the seller and/or the insured which Emerald obtains will be disclosed to any other person or entity without written consent, unless required by law.
Q:What percentage of the face value will the owner be paid for the policy?
A:The amount to be paid to the owner of a policy depends upon various factors such as medical condition, age of the insured, amount of future premiums due to keep the policy in force and the cash surrender value of the policy. On occasion, Emerald has paid up to 80% of a policy’s face value.
Q:Can I sell only a portion of my policy?
A:In cases where a policy’s face value is more than $100,000, Emerald will consider purchasing only a portion of the policy and leaving the remainder of the death benefit for the policy owner’s beneficiaries. This option will be determined on a case-by-case basis.
Q:Who pays future premiums?
A:Emerald becomes the new owner and covers all future premium expenses
Q:Are there any restrictions on the proceeds?
A:There are no restrictions and sellers are free to use the proceeds however they wish.
Q:What if I change my mind?
A:You may stop the evaluation process at any time and all original documents will be returned to you. Further, if you sell the policy, Emerald offers a 15-day rescission period. As the previous policy owner, you can change your mind and get the policy transferred back to you within fifteen days after receiving your funds.