An Alternative Solution for Viatical Settlements
At Brookfield Insurance Partners, we have a relationship with a loan provider for life insurance policies that provides funds for individuals with late-stage cancers and other terminal illnesses.
Loan Eligibility Criteria
- Policy Size: $50,000-$3M
- Loan Size: Loans advance rates may be from 35 to 70 percent of the total Death Benefit*
- Policy Types: UL, Term, Whole Life and Group (almost all non-variable life insurance policies
will qualify) - States: Not all states are approved. Please inquire within.
- Impairment: Late-stage cancer, and other terminal illnesses
- Underwriting Guidelines: Insured must have a Life Expectancy of less than 72 months
*The amount of the loan is based on several factors, including: 1) the projected life expectancy of the
insured, 2) the net death benefit of the life insurance policy, 3) policy premium amount, and 4) the type of policy and specific life insurance company.
Process for Loan
The applicant will first speak with one of our experienced counselors who will describe exactly how the program works. If the individual is interested, the counselor will send out an application to be completed and returned. Once that completed application is received, we will obtains medical records from the treating medical facilities and will obtain insurance policy information from the issuing carrier. Once medical records and policy information are received, the loan provider can complete its underwriting process and will then advise the dollar amount that can be advanced in the form of a loan to the owner of the policy.
If that offer is accepted, the loan provider generates loan documents and sends them out to the individual for signing and notarization. Once all loan documents have been signed, notarized and returned, the loan provider submits change forms to the insurance company. When those change forms are recorded by the insurance company, the loan provider wires out the loan advance to the applicant. Once the loan is in place, the loan provider will pay the premiums for the policy and these amounts will be added to the loan balance. When the policy matures, the loan provider collects the death benefit proceeds of the life insurance policy. These proceeds are then applied to repay the loan principal and interest and any surplus is then paid to the beneficiary designated in the agreement.
Settlement Loan Features and Benefits
- Lump sum cash advance to borrower
- Future premiums paid by Loan Provider
- All fees and interest capitalized into loan (no out-of-pocket costs)
- Death benefit beyond repayment of loan balance payable to family/designated beneficiary
- No cash repayment required during insured’s lifetime
- Loan advances are generally not taxed as income
- Loan repaid solely out of life insurance policy death benefit
- Most life insurance policy types are eligible
- Easy to complete, no cost application
- No minimum credit score or income requirement
- Receive funds from an asset most people do not realize they have
- Spend the money how borrower sees fit
