Warning Signs Your Life Settlement May Not Be As Represented

If you have agreed to sell your life insurance policy to a viatical settlement company, there are some warning signs you should watch for to make sure that the settlement is as was represented to you.

1. Make sure you keep accurate records of all phone conversations, correspondence and emails. When you get your contract, gather up all of your records and make sure the terms of the contract are in line with your original understanding of the agreement. A financial planner or an attorney should be considered to review this contract before you agree to sign it. Remember, Florida does allow a fifteen day 'return' period after you receive your settlement check.
2. If you have been told by the viatical investor that your life insurance company can do nothing to assist you with this type of transaction, don't take their word for it! Contact your insurance agent or the company and find out if they in fact offer any types of accellerated payments, loans or other options that might be available to you.
3. Be certain that you understand the tax implications, restrictions on potential public benefits and effects on your estate before you enter into a settlement. Florida does require that the settlement company advise you of all of these things before you enter into a contract with any company to sell your life insurance.
4. Don't feel like you have no choices! Not only are you free to change your mind past the cooling off period, but you should never fall prey to high pressure sales tactics. If the company is constantly calling you, sends you a contract before reviewing your medical or insurance records or if the settlement company asks for your financial information, you should contact the Florida Division of Financial Services and report the tactics.
5. Shop around! Not only may your life insurance company be able to offer you more money than the settlement company, but there are often companies who will pay a larger settlement to you in exchange for your policy. Know what your policy riders contain as they may have additional benefits that companies will pay larger amounts for.
6. Do not agree to not review other companies before settling on one. If the company you are dealing with asks for the exclusive right to your policy immediately cease communication with them. This could be a warning sign that they are not offering you the highest settlement rate that is available to you.
7. If you begin getting calls or letters from a settlement company that you did not originally contact regarding your life insurance policy you may want to verify with the Florida Division of Financial Services and find out if that company has had any complaints.
8. Do not do business with any settlement company who is not properly licensed by the Florida Division of Financial Services. Many times investors will try to convince you that they are properly licensed but cannot provide you with documentation that substantiates their claim.