A life settlement is the sale by a senior policy owner of their
life insurance policy. The policy is sold to a settlement company
for a cash payment that exceeds the surrender value. In this way
a secondary market is created for life insurance policies.
Traditionally if a life insurance policy was no longer needed
there were only two options a) surrender the policy for the cash
value or b) allow the policy to lapse. Now you can sell your policy
for more than the cash value. The majority of policies are taken
out for income protection and your circumstances may change so
that the policy is no longer needed or premiums have become excessive.
Now you have more choices and more cash to make those choices.
LPA’s Lifestyle Choices gives you the choices to suit your
The hidden value in your life policy can now be unlocked giving
you the additional cash for all of those needs. Your changing circumstances
mean that you may have simply outgrown the need for the coverage
or there is a more appropriate coverage for you.
It’s your choice and your lifestyle –
LPA’s Lifestyle Choices. Sale proceeds are yours to use
any way you wish.
Most policy types are suitable.LPA buys Universal, Whole, Variable,
Term and Survivorship.
If your policy is suitable, we will always pay more than the surrender
value, releasing the policies hidden fair value to you. The amount
we pay will vary from policy to policy based upon your age, health,
premiums and the policy. The Policy Check form gives you an indication
of whether your policy is likely to be suitable.
We can get a fast and fair LPA Lifestyle Choice to you in 3 – 5
days once we get a completed application, medical records and a
copy of your policy.
An escrow agent holds your policy and transfer pending receipt
of the sale proceeds. The sale proceeds are released as you direct
upon registration of the transfer of the policy. The timing of
this will vary according to the time that the life insurance company
takes to process the transfer, most times no longer than 30 days.
We do everything we can to get the cash into your hands as quickly
No. You have no further obligations under the policy.
We maintain the highest standards of conﬁdentiality. We
only deal with institutional investors and your personal details
are kept confidential at all times. Strict protocols are
in place to ensure your confidentiality and privacy.
You can cancel the deal up to 15 days after receipt of the sale
proceeds. We will transfer the policy back to you and you need
to return the sale proceeds plus any premiums we may have paid.
Generally proceeds are;
- Tax free up to the amount paid in premiums;
- Taxed as ordinary income up to the cash surrender value; &
- Taxed as capital gains on the excess.
Your circumstance may vary and you should consult your tax advisor.
- Review your needs with your insurance agent or ﬁnancial
- Complete the Policy Check
- Complete and submit the Application
If the policy is suitable we will make a LPA Lifestyle Choice
offer within 3 – 5 days of receipt of all the details we
need. You are under no obligation to accept
– it’s your choice. If you accept the offer, sign
the transfer papers and return with your policy to the escrow agent.
It’s simple, fast and fair. It’s your choice.
Yes. You are the legal owner of the policy and you can deal with
it and the proceeds as you please.