Get the Facts Before You Make a Decision
Before you enter into any viatical or life settlement transaction you should understand your rights and how the process works:
- Contact the Maine Bureau of Insurance (800-300-5000 in Maine or 207-624-8475) to confirm that the broker or company you are considering is properly licensed in Maine.
- Contact a licensed viatical & life settlement broker or viatical & life settlement provider for information about settlements.
- Contact a professional tax advisor to find out the tax implications. Proceeds are only tax-free under certain circumstances.
- Consult with your own financial advisor who can advise you of other financial consequences if you sell your policy.
- Know that your creditors could claim the proceeds.
- Find out if you’ll lose any public assistance benefits--such as food stamps or MaineCare--before electing to receive any proceeds.
- Know that you will be required to provide certain medical and personal information.
Questions to Ask Before You Sell Your Policy
- Do I still need life insurance protection?
- Will I qualify for a new life insurance policy in the future?
- If I sell my policy, how will the settlement provider decide how much money I will be offered?
- Is this an employer or other group policy? If so, do I need their permission to sell it?
- If I sell my policy, who will be the legal owner?
- After I sell my policy, can the policy be resold?
- Will investors have specific information about me, my family, or my health status?