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Tax, Financial & Transactional Disclosures:


Welcome Life Securities nor its employees, affiliates &/or independent contractors are tax advisors. Therefore, it is strongly recommended that all clients consult a financial advisor, certified public accountant or an attorney regarding the potential tax, financial, and insurance considerations of any settlement.


Every consumer should be aware of the following considerations before entering into a life settlement transaction:


  • There may be possible alternatives to selling a life insurance policy. This may include the option of an accelerated death benefit or policy loans offered by the policy owner's life insurance company.
  • The sale of a life insurance policy may result in tax consequences. Some or all of the proceeds of a life settlement may be taxable under federal income tax and/or state franchise and income tax laws. Welcome Life Securities nor its employees, affiliates &/or independent contractors are tax advisors. Therefore, it is strongly recommended that all clients consult a financial advisor, certified public accountant or an attorney regarding the potential tax, financial, investment and insurance ramifications of any settlement.
  • Selling a policy will reduce the insured's insurable capacity as the sold policy will remain in force and may affect the insured's ability to obtain additional life insurance coverage in the future.
  • Except for double indemnity provisions for accidental death, no beneficiary named by the policy owner as a result of a life settlement shall receive any insurance proceeds (the death benefit) from the life insurance policy that is sold.
  • If the policy being considered for a life settlement is a joint policy or provides coverage for family members or other individuals, then there may be a loss of coverage for those family members or other individuals with a life settlement.
  • Life settlement proceeds could be subject to the claims of creditors.
  • Selling a policy will reduce the insured's insurable capacity as the sold policy will remain in force and may affect the insured's ability to obtain additional life insurance coverage in the future.
  • After entering into a life settlement contract, the seller may have a limited time period that will be specified within the life settlement contract to rescind the transaction (rescission period). Welcome Life Securities, LLC recommends that the seller read the life settlement contract and consult with his/her financial and/or legal advisor prior to signing it. Rescission provisions, if any, vary based on state law and the life settlement contract and are subject to repayment of all proceeds received from the sale of your life insurance policy (plus any cost of premiums paid by the provider within such rescission period).
  • Entering into a life settlement contract may cause other rights or benefits, including conversion rights and waiver of premium benefits, which may exist under the policy or a certificate of a group life insurance policy to be forfeited by the policy owner and/or the insured. Assistance should be sought from a professional financial advisor.
  • Welcome Life Securities and the referring broker-dealer will be compensated for services performed as a life settlement broker for the sale of a life insurance policy. Please refer to Welcome Life Securities' life settlement evaluation form for additional information addressing compensation.
  • All medical, financial or personal information solicited or obtained by a life settlement provider, broker and/or referring registered representative about an insured, including the insured's identity or the identities of the insured's family members, spouse, or significant other may be disclosed as necessary to effect the life settlement between the policy owner and life settlement provider. The information may be provided to the financing entity that purchases the policy or provides funds for purchase. Therefore, it is important to review the life settlement contract to see if and when permission to share this information may be requested for renewal.
  • It is in the best interest of consumers who wish to sell their life insurance policies to have a recent physical examination since an accurate life expectancy is predicted based on current medical records.
  • The life settlement provider may assign or transfer its interests in the settled policy to a third party.
  • Information regarding the policy owner's and insured's identity and insured's medical condition will 1) be shared with the insurer that issued the life insurance policy that is the subject of the life settlement transaction; and 2) shall be available to each subsequent owner of such life insurance policy.
  • In order to enter into the formal sale of an insurance policy, consumers will complete an application, including specific disclosures, issued by the life settlement provider. Any person who knowingly presents false information in an application for a life settlement is guilty of a crime subject to penalty, including but not limited to fines and imprisonment.
  • Welcome Life Securities urges participating referral broker dealer firms and their clients to be proactive in educating themselves about life settlements and the corresponding tax, financial, investment and insurance consequences.
  • Welcome Life Securities issues no guarantee that any insurance policy will be sold.
  • Welcome Life Securities, LLC and the referring registered representative, if any, represents only the policy owner or seller and shall act according to his/her instructions and in their best interest notwithstanding the manner in which Welcome Life Securities, LLC and the referring registered representative, if any, is compensated.
  • IRS Circular 230 Disclosure

    To ensure compliance with requirements imposed by the IRS, we inform you that any information contained in this communication is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing or recommending to another party any matters addressed herein.


October 8, 2009
Welcome Life Securities, LLC Adds Institutional Trading Services to Life Settlement Platform
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October 03, 2007
Welcome Life Securities, LLC - The industry's first broker-dealer to deal exclusively in variable life settlements.
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