Here are some of the most common questions people have about life settlements

What is a life settlement?
A life settlement is defined as, a financial transaction in which a policy owner possessing an unneeded or unwanted life insurance policy sells the policy to a third party for more than the cash value offered by the life insurance company. The purchaser becomes the new owner and beneficiary of the policy and is responsible for all subsequent premium payments. Or simply stated, it is the sale of a life insurance policy for a lump sum that is greater than the policy’s cash surrender value, but less than its death benefit.

What is NAF Funding’s role in a life settlement?
NAF Funding is a life settlement broker that works for the owner of the policy. Our role as broker is to package a life insurance policy for sale and actively generate competitive offers from our wide network of life settlement providers (financial institutions), with the goal of finding the best offer for the policy owner. Since NAF Funding is independent and unaffiliated with any individual funding source, it can be impartial in its assessment of different offers. NAF Funding also handles nearly all of the administrative requirements needed to process a life settlement.

What are the steps to begin the life settlement process?
NAF Funding recommends that the first step is for a policy owner to talk to a financial advisor, and see if a life settlement is appropriate for them. Then, all the policy owner needs to do is — fill out a simple application to start the process. NAF Funding does the rest. NAF Funding will evaluate a life insurance policy to see if it meets the criteria for life settlement. If the policy is a good candidate for a life settlement, we will then gather and review the relevant information, solicit offers on a policy owners behalf, negotiate with the life settlement providers and present the client with a provider’s offer.

Are there any application fees?
No. NAF Funding clients do not incur any fees. All fees for underwriting, escrow services, and other similar expenses are paid for by NAF Funding.

How much money will I make from a life settlement?
It depends on a number of factors, including the face value of the policy, the amount of premiums, the insured's health and age. At NAF Funding, we have settled policies well in excess of the cash surrender value of the policy.

Will I have to pay NAF Funding for handling my life settlement?
There are no out-of-pocket costs to the policy owner. NAF Funding receives a commission from the provider payable out of the gross offer price for the policy. The amount of the commission is fully revealed to the client and is calculated in strict accordance with a commission schedule that is also available to the client.

Who buys these policies?
Funding for life settlements is dominated by large institutional investors and multi-national financial firms who purchase policies in order to diversify their investment portfolios.

How long does the life settlement process take?
The entire life settlement process can take approximately 90 days. This begins with the filling out of an application and culminates with the receiving of life settlement funds.

Are there any tax and financial implications that needs to consider?
Possibly. Anyone considering a life settlement transaction is strongly encouraged to discuss all of the relevant issues with his or her insurance, financial, tax and legal advisors.

Will my information be kept confidential?
Yes. NAF Funding has a strict privacy policy. We will not share, rent or sell a policy owner's information without their written permission. Any written approval for the sharing of this information will explain who may get the information and why it might be released.

NAF Funding has built a reputation for abiding by the highest standards of business ethics and integrity. We are a proud member of the Life Insurance Settlement Association (LISA), the industry's foremost trade association and are a sponsor of the National Ethics Bureau. We also have employees who are members of the National Association of Insurance and Financial Advisors (NAIFA).

Ask a representative for a copy of the NAF Funding Privacy Policy.