FREQUENTLY ASKED QUESTIONS

Is This Legal?

Yes. For more than a 100 years people have been selling their life insurance policies for a cash settlement. In 1911 the Supreme Court ruled in (Grigsby v. Russell) that selling and buying a “life settlement” is a legal transaction, no different than selling or buying any other asset.

What is the Minimum Investment?

$10,000 for a non-qualified investment (cash), or $25,000 for a qualified investment (IRA/Roth IRA/401k/403b).

Can I use My Retirement Funds to Invest?

You can use non-qualified funds (cash) or qualified funds, which includes most retirement accounts. (IRA/Roth IRA/401k/& 403b.).

What are the Risk Factors?

LONGEVITY: It’s impossible to know the exact date of when a policy will mature. Because the exact date of a maturity ultimately determines the annual rate of return, the sooner a policy matures the higher the annual rate of return, and the longer it takes to mature the lower the annual rate of return. While EquiVita attempts to provide accurate assessments of life expectancy it’s possible that any single policy could take 10 years or more to mature.

CONTESTABILITY: The insurance carrier can contest the payout of a death benefit in the first two years from when the policy was issued to the insured. To mitigate this issue, EquiVita does not purchase policies less than two years old.

LIQUIDITY RISK: Purchasing a fraction of a life settlement policy means those funds are committed to the policy until it matures. There are no early withdraws. Investors should not place funds in a policy they can’t afford to leave untouched for several years.