CLIENT RELATIONSHIP SUMMARY
Welcome Life Securities, LLC ("WLS"or "Firm") is a registered broker-dealer with the SEC and member of FINRA. We are a broker dealer and provide investment banking services rather than brokerage account or advisory account services. We are providing this Client Relationship Summary ("CRS") to help you understand the different types of services and fees that we offer. For your convenience, free and simple tools are available to research firms and financial professionals at Investor.gov/CRS, which also provides educational materials about broker-dealers and investing.
1. WHAT INVESTMENT SERVICES AND ADVICE CAN YOU PROVIDE ME?
WLS is a licensed Viatical/Life Settlement Broker that provides professional representation to variable life insurance policy owners who choose to sell their policy to a third party in the secondary market for life insurance. The firm represents the best interests of retail investors (policy owners) by conducting a transparent auction with state licensed viatical/life settlement providers to establish competitive market offers for the purchase price of the policy. If an offer is acceptable to the policy owner, WLS assists in the facilitation of the sale of the life insurance policy between the policy owner and the viatical/life settlement provider. Fees are only charged upon the successful completion of a viatical/life settlement transaction.
WLS does not offer retail investors traditional broker-dealer services or investment monitoring services. WLS neither purchases securities in its own account nor does WLS open any accounts or hold securities or money for retail investors. WLS does not obtain or use any discretionary investment authority over any policy owner or investor's assets or capital.
Questions to ask our financial professionals about our relationship with you and our services:
- Why should I engage your firm to represent me in the viatical/life settlement negotiation and sales process?
- How do you determine the best sales price and how do I decide which buyer will purchase my policy?
- What is your relevant experience, including your licenses, education and other qualifications? What do these qualifications mean?
2. WHAT FEES WILL I PAY?
The fee paid to WLS, for the successful completion of a viatical/life settlement transaction, is based on the market value of your life insurance policy and will be a percentage of the total dollar amount negotiated by WLS (the "gross purchase price" or "market value") for the sale of your policy. This fee is paid out of the gross purchase price of the policy from the funds that are deposited into a third party escrow account by the Viatical/Life Settlement Provider that is purchasing the policy from you. The actual fee and calculation will be disclosed to you prior to executing the Provider's contract for the sale of your policy.
You will pay fees and costs whether you make or lose money on the sale of your life insurance policy. The proceeds of your viatical/life settlement transaction may not exceed the total cost of the premiums paid to the life insurance carrier. Fees and costs will reduce any amount of money you make on your investments over time. Please make sure you understand what fees and costs you are paying.
Please review the multiple factors involved in determining our fees, how perceived conflicts of interest may exist and what our minimum policy death benefits requirements are for policy owners by visiting our website located at www.welcomelifesecurities.com/WLS-CRS-Supplement-06-30-2020.pdf.
Questions to ask our financial professionals about the impact of our fees and costs:
- Help me understand how these fees and costs might affect the sale of my life insurance policy?
- What if I decide to keep my policy instead of selling? Do I owe any fees or costs?
3. WHAT ARE YOUR LEGAL OBLIGATIONS TO ME WHEN PROVIDING RECOMMENDATIONS? HOW ELSE DOES YOUR FIRM MAKE MONEY AND WHAT CONFLICTS OF INTEREST DO YOU HAVE?
WLS does not make recommendations as to whether or not you should sell your life insurance policy, the decision to sell a policy is left to the policy owner. However, we do make representations as to the best prices offered for and the potential buyers of your life insurance policy, which we have identified through our negotiation process. When we provide you with a recommendation, we have to act in your best interest and not put our interests ahead of yours. At the same time, the way we make money creates some conflicts with your interests. You should understand and ask us about these conflicts because they can affect the recommendations we provide to you. Please review some examples to help you understand what this means by visiting our website located at www.welcomelifesecurities.com/WLS-CRS-Supplement-06-30-2020.pdf.
Since a policy owner only becomes a customer of the firm if a sale is completed, and WLS is only compensated for a completed transaction, it can be perceived that if a policy owner sells more policies, then WLS could earn additional compensation. While a conflict of interest could occur, WLS reviews the suitability of each individual policy sales transaction, provides the state mandated viatical/life settlement disclosures and recommends that the policy owner consult with a financial advisor, certified public accountant and/or attorney regarding potential alternatives to selling a life insurance policy.
Questions to ask our financial professionals about potential conflicts of interest:
- Do you have an obligation to sell my life insurance policy if I engage you to assist in the sale?
- How might your conflicts of interest affect me, and how will you address them?
4. HOW DO YOUR FINANCIAL PROFESSIONALS MAKE MONEY?
The financial professionals of WLS are compensated either by salary, bonus or are contracted to receive a portion of the fee that WLS receives for a closed viatical/life settlement transaction. Conflicts of interest would be the same for individual financial professionals and WLS for each viatical/life settlement transaction completed. Please review some examples to help you understand what this means by visiting our website located at www.welcomelifesecurities.com/WLS-CRS-Supplement-06-30-2020.pdf.
5. DO YOU OR YOUR FINANCIAL PROFESSIONALS HAVE LEGAL OR DISCIPLINARY HISTORY?
No, neither WLS nor its financial professionals have any current legal or disciplinary history that is required to be disclosed.
• Investor.gov/CRS can be used as a free and simple search tool to research us and all our financial professionals.
Questions to ask about the disciplinary history of our firm and financial professionals:
- As a financial professional, do you or your firm have any disciplinary history? For what type of conduct?
6. ADDITIONAL INFORMATION
For additional information on our brokerage services, please see our FINRA BrokerCheck which can be found on the following link: https://brokercheck.finra.org/firm/summary/142281.
For additional information about our services (including an up-to-date copy of this statement), please visit our website at www.welcomelifesecurities.com or contact us by telephone at (561) 826-0299 or by email at firstname.lastname@example.org.
Questions to ask about our contacts and complaints:
- Who is my primary contact person?
- Is he or she a representative of an investment adviser or a broker-dealer?
- Who can I talk to if I have concerns about how this person is treating me?
FORM WLS-CRS | CLIENT RELATIONSHIP SUMMARY | JUNE 30, 2020