Selling Your Life Insurance PolicyFREQUENTLY ASKED QUESTIONS

QIs it OK to Sell and Buy Life

Insurance Policies?

Yes.The life insurance policy is property of the contract owner once it is issued and put in force. This means that the policy owner has the right to dispose the policy after the contestability period is over. Options include• Holding onto the policy until maturity• Surrendering the policy for its cash value• Lapsing the Contract• Selling the policy for an amount higher than

cash value, but less than the policy face amount

QHow Does a

Life Settlement

Work?

How it WorksThe insured or the contract owner, if different than the insured, submits an application to AFC. We then obtain

an in-force illustration of the policy from the insurer showing the face amount and any outstanding loans or

premiums due, as well as medical records from the insured’s physicians. After determining whether the

insured meets the necessary criteria, an offer is made. If accepted, the Life Settlement transaction is documented and proceeds to closing. The policy’s seller has the right to rescind the transaction within 15 days of the receipt

funds so long as the purchase price and premium paid by AFC are returned prior to the end of the rescission

period. Learn more.

QIs the Process Confidential?

Yes.

Everything is confidential. No medical, financial, or any other

personal information will be disclosed to any other person

without written consent, unless required by law.

QWhat if I

Change My Mind?

It’s OK to change your mind.

AFC offers a 15 day rescission period. As the previous policy

owner, you have the right to get the policy transferred back to you within

15 days of receiving your funds.

QIs a Medical

Exam Required?

No.AFC will obtain your existing

medical information by contacting your physicians.

QWhat About

Future Premiums?

AFC will cover all future premium expenses after

becoming the new owner.

QAre There

Restrictions on the

Proceeds?

No.All sellers are free to use the

proceeds as they wish.

QWhat Type of

Policy Will AFC Purchase?

AFC purchases most types of policies including:

• Term Life Insurance• Universal Life Insurance• Whole Life Insurance

• Joint Survivorship• Life Insurance

• Group Life Insurance• Key-Man Life

QHow Long

Does it Take to Complete the Transaction?

Our goal is to complete most transactions within 30 days.

One of the most important factor’s is gathering medical records. Obtaining

complete and accurate data regarding the insured, seller, insurance company, and/or policy may take time and can slow down the transaction. AFC will keep in contact with the seller or seller’s representative

constantly throughout the process.

QHow Much Will the Owner be Paid for the

Policy?

The amount to be paid for the policy depends upon

various factors.

• Medical Condition• Age of the Insured

• Amount of Future Premiums Due to Keep Policy in Force

• Cash Surrender Value of the Policy

*AFC has paid up to 80% of a policy's face value

QAre There Any

Costs or Obligations?

No.

There is no cost or obligation to the seller.

For more information on selling your life insurance policy, please visit our website.