Topic 06 of 08
Family and estate
Your beneficiaries, family and the plans you have made.
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What happens to my beneficiaries once I sell my policy?
Once a life insurance policy is sold through a life settlement, the original beneficiaries are removed from the policy and no longer receive the death benefit. Ownership of the policy transfers to the buyer, who also becomes the new beneficiary and assumes responsibility for maintaining the policy.
Will my beneficiaries owe taxes after I sell my policy?
No. Once a life insurance policy is sold through a life settlement, the original beneficiaries are removed from the policy and no longer have any ownership or financial connection to it.
Can my family or advisor help me?
Yes. You can involve your family or advisor in reviewing the options. The policy owner stays in control and authorizes each step.
