Life Settlement Services
Unlocking Cash from Your Life Insurance
Financial Consultation
Tailored Financial Guidance
Our team of financial experts provides personalized consultations to help clients navigate life settlement options, ensuring they make informed decisions that align with their financial goals.
Market Analysis
Understanding Policy Value
We conduct thorough market analyses to determine the best value for your life insurance policy. Our insights ensure you receive a competitive offer that reflects the true worth of your asset.
Client Support
Dedicated Assistance Every Step of the Way
Our commitment to our clients extends beyond the transaction. We offer ongoing support to ensure a smooth process, answering any questions and providing guidance throughout the entire life settlement journey.
Life Settlements
Explained
A life settlement is the sale of an existing life insurance policy to a third party (usually an institutional investor) for a one-time cash payment.
The cash payout is more than the policy's cash surrender value (what the insurance company would pay you to cancel it), but less than its actual death benefit.
Once the sale is complete, the investor becomes the new beneficiary. They take over paying all future premiums and collect the full death benefit when the insured person passes away.
Why Do People Sell Their Policies?
It usually comes down to changing life circumstances. The most common reasons include:
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The premiums became unaffordable: The cost of keeping the policy active is eating into retirement savings.
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The insurance is no longer needed: The mortgage is paid off, or the children are financially independent adults.
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Funding long-term care: The seller needs immediate cash to cover medical bills, assisted living, or nursing home care.
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An alternative to lapsing: Instead of letting a policy lapse (expire worthless) or surrendering it back to the carrier for a low value, the owner extracts maximum cash.
The Financial Spectrum
To understand where a life settlement sits, think of it as a middle ground between surrendering a policy and the policy maturing.
Basic Eligibility Requirements
Not every policy can be sold. Investors typically look for specific criteria to ensure the transaction makes financial sense:
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Age/Health: The insured is typically 65 or older with a change in health since the policy was issued, or someone with a chronic/terminal illness (often called a viatical settlement if life expectancy is under two ye
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Not every policy can be sold. Investors typically look for specific criteria to ensure the transaction makes financial sense:
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Age/Health: The insured is typically 65 or older with a change in health since the policy was issued, or someone with a chronic/terminal illness (often called a viatical settlement if life expectancy is under two years).
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Policy Face Value: The death benefit is usually at least $100,000.
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Policy Type: Universal Life and Whole Life are the easiest to sell, but convertible Term Life policies can also qualify.
⚠️ Important Tax Note: Unlike a standard death benefit, the proceeds from a life settlement are often subject to federal and state income taxes. The payout is typically taxed in tiers: tax-free up to your "cost basis" (the total premiums you've paid over the years), taxed as ordinary income on any cash value gains, and taxed as capital gains on the remaining amount.
The Baseline Math of a Settlement
While every policy valuation depends heavily on the insured's age, health status, and the policy's premium structure, the financial hierarchy of discarding a policy generally looks like this:
Lapse ($0) << Cash Surrender Value << Life Settlement Payout} << Death Benefit
About Us
Meet Michael Giller and Bretcor Associates, Inc:
Michael's financial and investment experience includes: insurance, mutual funds, oil income properties, and real estate partnerships. He has forged strategic alliances across key business sectors in various industries at leadership levels. Michael provides both business development and marketing strategies. His solutions, many of which are both traditional and sometimes proprietary in nature includes programs such as: specialized life insurance premium financing, life settlements, real estate financing, project based financing and asset lending.