To Begining What other things should I know about a life settlement contract?
• There may be a loss of life insurance coverage on your spouse or other family members, if the policy (or any riders attached to it) covers their lives. • The amount of premiums you pay • Policy cash values or dividends, if provided for in the policy • A loss of other rights or benefits, including conversion rights and waiver of premium benefits that may exist under the your policy • You may incur tax consequences • Your ability to receive supplemental social security income, public assistance, and public medical services including Medicaid • The money you receive for your life settlement could be taken away from you by creditors, personal representatives, trustees in bankruptcy, and receivers in state or federal court. • Because of the above, you should contact an attorney, accountant, estate planner, financial planning advisor, tax advisor, social services agency, your insurance company, or agent, as applicable, to find out what effect selling your policy will have on you.
