Frequently Asked Questions
The more you know about how the Canadian Life Settlements program works, the better you and your family can make a timely and informed financial decision. Attached are some of the most frequently asked questions we receive, however if you have any of your own questions, please don’t hesitate to call us toll-free at 1-866-888-5456, or you can email your question to info@canadianlifesettlements.com. We look forward to helping you!
The Canadian Life Settlements Program
The amount Canadian Life Settlements will pay you is based on several factors, including:
- The projected life expectancy of the insured
- The net death benefit of the life insurance policy
- The projected amount of remaining life insurance policy premium payments
- The type of policy and specific life insurance company
In most cases the amount Canadian Life Settlements will advance is considerably higher than the Cash Surrender Value that will be offered by your insurer, but is less than the policy’s death benefit.
There are several stages to the process. Generally, the Canadian Life Settlements process can provide you with a formal offer letter within five days of receiving a completed application and a verification of the eligibility and details of your life insurance policy.
Once you accept the offer, we will need to either change the life insurance policy’s ownership and beneficiary status to Canadian Life Settlements or, collaterally assign the policy to Canadian Life Settlements. This part of the process can take four to six weeks. Once confirmation is received from the life insurance carrier, we can generally advance funds within two business days.
Once approved and processed, you will receive your advance either in a lump sum by cheque or wire to your bank, or periodic payments if that’s what you prefer with direct deposit to your bank account.
There are no application fees or out-of-pocket expenses with the Canadian Life Settlements program. However, if you accept the Canadian Life Settlements proposal, an origination fee may apply, which you will be advised of in your Offer Letter. This fee will vary based on your province of residence and other factors but is generally 3-5% of the amount advanced by Canadian Life Settlements. If you select the option to borrow against the death benefit of your policy there is also an interest rate charged. The rate charged, which can vary based on provincial regulations will be disclosed in your Offer Letter. Along with premium payments, the management fee and interest are repaid entirely out of the life insurance death benefit, so there are no out-of-pocket costs to be paid by the insured after the closing of with a Life Advance or Life Settlement.
The funds advanced or offered for purchase under the Canadian Life Settlements program are generally not taxable. However, since each individual situation is unique, and Canadian Life Settlements does not provide tax, legal or financial advice, we recommend you speak with your legal, tax or financial planning advisor.
In order for Canadian Life Settlements to simplify the payment of your policy premiums and maintenance of your life insurance policy, the policy ownership is transferred or collaterally assigned to Canadian Life Settlements. When the life insurance policy matures (the insured dies), the insurance carrier will pay the policy death benefit to Canadian Life Settlements.
Qualification
You qualify to apply if you have a valid life insurance policy and:
- Are over the age of 70 (both insured’s if a joint, last to die policy) or
- Are under age 70 and believe that you have a significant medical issue that will significantly impair your longevity
We can accept individual, group and employer-provided term or whole life insurance policies, and no cash surrender value is required. There are several requirements for eligibility, including:
- Your life insurance policy must be issued by a Canada-based life insurance company
- Your policy must be transferable or collaterally assignable to Canadian Life Settlements
- Your policy must have been issued at least two years prior to your application forthis program.
- You must have one or more life insurance policies with a total death benefit of at least $100,000
Your credit rating, repayment ability and employment status are not factors we consider. The details of your life insurance policy and perhaps your medical history are the primary factors for consideration.
Privacy
In the course of carrying on its business, Canadian Life Settlements necessarily acquires and maintains nonpublic personal information, including highly sensitive medical information, about its potential applicants, actual applicants and customers. Although Canadian Life Settlements is not a ‘health information custodian’ (as that term is used in the Personal Health Information Protection Act, 2004 of Ontario), Canadian Life Settlements does obtain, use and disclose ‘personal health information’ (again as that term is used in the Personal Health Information Protection Act, 2004 of Ontario) in order to conduct its business – and thus Canadian Life Settlements has established and implemented a privacy policy to safeguard the personal health information that it receives.
All officers and employees of Canadian Life Settlements, as well as any contractors, consultants, agents or affiliates engaged by Canadian Life Settlements to assist in its business (all together the “officers, employees and contractors”), are expected to adhere to Canadian Life Settlements’ privacy policy. This means that they are permitted to use personal health information only for the business purposes of Canadian Life Settlements. Each officer, employee and contractor, as a necessary condition of employment or engagement with Canadian Life Settlements, is subject to the same requirements for the protection of such personal health information.
To that end, Canadian Life Settlements employs and maintains physical, electronic and procedural safeguards to guard individuals’ personal health and financial information and to restrict its use and disclosure to Canadian Life Settlements’ officers, employees and contractors who need to know and use such information. Canadian Life Settlements will dispose of the personal health and financial information, when it is no longer needed for the business tasks, by modifying the information to make it unreadable or undecipherable, by erasing, shredding or other means. Canadian Life Settlements may also dispose of such information by contracting with a third party vendor engaged in the business of disposing of records.
Please refer to the section on confidentiality of medical information for Canadian Life Settlements’ privacy policies.
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Or email us at info@canadianlifesettlements.com
