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Example Cash Donation from the Donor’s Life Settlement
Policy Owner/Donor:
82 Year Old Male
Policy Value:
$400,000
Cash Surrender Value (CSV)
$0
Gross Offer for Policy
$74,800
18.7% of policy value
Without this life settlement, the donor would have allowed the policy to lapse and would not have been able to make the donation.
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Your donors could be eligible right now for a life settlement!
Call us for a quick evaluation. It’s free and there is no obligation!
Call toll free
800.492.5186
Charitable Organizations and Life Settlements
Thinking Outside the Box
Raising funds is never easy, no matter how worthwhile the cause. Financial challenges, especially those currently facing community and academic foundations as well as religious organizations, motivate one to think outside the box in search of a solution.
One solution charitable organizations have learned is that a life settlement can bring significant amounts of cash into their organization. Many organizations already possessing life insurance policies that were gifted them by donors could sell the policies in a life settlement transaction.
Organizations also have a donor base of senior aged individuals who may no longer need or want their life policies. The donor can sell these policies in a life settlement and donate the funds to the charitable organization. The proceeds are unrestricted and can be used or invested in any way the organization chooses.
What is a Life Settlement?
Life settlements are a philanthropic tool available to donors and charitable organizations who want to convert their unwanted life insurance policies to cash. Typically, large banks or institutions are the buyers of these policies. Once they purchase your policy and pay you a one-time cash settlement, they become the owners and beneficiaries of the policy, take over the future premium payments, and release you from any financial obligations on the policy.
Major Wall Street institutions such as Citibank, UBS, Goldman Sachs, Deutsche Bank, and Credit Suisse are just a few of the many who participate in the life settlements market.
Life settlement amounts can typically range between 10% and 40% of a life policy’s death benefit. Some settlements are less and others much more—always dependent upon the type of policy and the insured’s health at the time of settlement. When compared to cash surrender values offered by the insurance carrier for the same policy, life settlements are generally substantially more.
Who's Eligible for a Life Settlement?
Individuals, trusts, charities, and religious organizations owning policies that meet these guidelines will be considered for representation by CharlesEdwards:
- The insured must be at least 65 years of age
- The face amount of the policy is between $250,000 and $100 Million
- The average life expectancy of the insured must be between 24 and 168 months
- The insured is not terminally ill
- The policy is beyond the two-year contestability period and must be transferable
- The policy type is universal, convertible term, survivorship, or whole life
- The policy was issued by a U.S. life insurance company
What are Some Benefits to My Organization?
- Receiving a donation from a donor who may not have otherwise been financially able to donate
- Unlike a pledge, a donation from a life settlement is immediate (in as little as 8-12 weeks), is significantly larger than most other donations, and has no negative net cash impact on the donor
- Elimination of premium costs on a previously gifted life policy when it is sold in a life settlement
- Provides funds now to fulfill the organization’s mission
What Does the Charitable Organization Need to Do?
Our streamlined processing provides you and your donors the utmost convenience, a speedy settlement, and the efficient negotiation to yield the highest value for your policies.
CharlesEdwards not only takes the guesswork out of each transaction—we take all the work out of each transaction! Some life settlement brokers require you to prepare all the documentation. We don’t. With CharlesEdwards, you make the referral and we do all the work—from day one until you or your donor receives the cash settlement.
As the appointed agent, we keep our clients informed every step of the way, allowing them the worry-free time to concentrate on their regular activities whether it be business, charitable or religious in nature.
For our charitable and religious organization clients, we will even provide you the marketing materials to send to your potential donors. Contact us to get the full details. When you do, be sure to ask about the corporate donation that CharlesEdwards will make for every donation you receive through a CharlesEdwards life settlement. With the fairest commissions in the industry and our personal donation, your organization benefits by receiving a level of net proceeds larger than with any other life settlement broker.
What's the Life Settlement Process?
CharlesEdwards makes the sale of your organization or donor’s policy as simple as 1-2-3!
- Your representative or donor speaks with a CharlesEdwards representative who explains the process, determines eligibility, and answers all questions.
- We then help your organization or donor to complete a simple agreement that you sign and return with other documents needed to process the sale.
- We obtain all needed medical records, reports and evaluations, submit the policy to multiple buying institutions approved by us, review all offers with you or the donor, communicate acceptance of an offer, assist escrow with final closing documents, and stay involved until you or the donor receives the cash settlement.
We conduct our life settlement transactions through overnight couriers, telephone, facsimile, and the Internet assuring our client ultimate convenience. Our clients also decide when and where. No representative will visit them and there is no need for a medical exam.
We carefully review every offer with our clients, assist with their final decision, and guide them every step of the way until the transaction closes. They can even change their mind after they have accepted an offer. If they decide not to sell their policy, they owe nothing to CharlesEdwards.
We disclose all our fees to our clients in writing before we begin representation, we pay for all upfront processing costs, and we will never ask our clients for fees prior to the successful sale of their life policy.
We guarantee it!
What About Privacy of the Donor's Information?
CharlesEdwards employs strict safeguards to protect the privacy of its clients—during and after the sale of their policies. In addition to the use of well-respected escrow services, we screen the buyers approved for the purchase of clients’ policies to ensure that they maintain privacy policies similar to ours. To see our Privacy Policy, click here.
We do not sell any information about our clients, including their name and contact information, to any parties. We only release personal information to authorized parties involved with the evaluation or sale of their policy.
CharlesEdwards is an exclusive life settlement broker representing policy owners, either directly or through their attorneys and financial advisors, in states across the country to ensure its clients receive the best available value for their policies sold to qualified domestic and international institutional buyers.
Think you have a policy or donor who is a candidate for a life settlement?
Call us toll free at 800.492.5186. We’ll give you a free evaluation while you’re on the phone. Or, if you prefer, you can email us with the information. We’ll evaluate it and get back to you right away.
FIDUCIARY DUTY COMES FIRST. ALWAYS.
CharlesEdwards, the trusted name in life settlements, conducts every transaction with the highest integrity and in the full light of day. In other words, when we say we are transparent, we actually mean it.
Before we begin representation, our clients complete a Suitability Questionnaire that answers many of their questions but also serves to identify whether a life insurance settlement is a suitable choice for them. If they find that they want to proceed, our representation agreement discloses all fees and commissions in advance of their signing. That’s right, all fees and commissions. And we never charge our clients any fees if they choose not to sell their policy. There are never any hidden charges or surprises. All original offers along with commissions and fees are presented to our clients for their review.
First in fiduciary duty
Superior service
Fast execution
Low client commissions
We do all the work. Always.
That’s CharlesEdwards!
