Senior Benefits Insurance & Financial Service

Careful evaluation of all investment offers should be done prior to signing agreements. Rather than make an immediate decision, insist that the caller confirm details of the offer and all verbal promises in writing. Verify that the offer is registered, or exempt from such requirement, with your state securities commissioner. In California, call the Department of Corporations 213 576-7500. Limited Patnerships are required to register unless an exemption is filed with the state. General Partnerships, however, are not required to register. Those who invest in General Partnerships may also be accountable for the financial liabilities of the entire partnership. Offers claiming to be exempt from registration must meet specific requirements. Specifically, they must be limited to no more than 35 investors who are: immediate relatives or friends; current investors in other offers made by the company; persons referred by current investors; and to those with the expertise to make a valid decision. Generally, if an offer is sold via telephone, it is an indication it would not be qualified for exemption under current law. This company may also be offering viatical settlements to terminally ill patients. A viatical settlement allows the person to sell a life insurance policy while they are still living, for usually about 50% to 85% of the policy's face value. The proceeds from the viatical settlement are not subject to California income tax or federal tax on capital gains. However, to be exempt from the federal tax requires a physician's certification that the person has an illness or physical condition that can be expected to end in death within 24 months. Viatical settlement companies are regulated and licensed by the California Department of Insurance. They are required by law to disclose the possible tax consequences of entering into a viatical settlement and the possible interruption of public assistance. They are also required to disclose alternatives that the insured's life insurance company may offer. Don't give in to high pressure. If you do enter into a settlement agreement, remember that California law allows you 15 days from the date you executed the settlement to rescind it for any reason. To request license information, a list of viatical settlement companies, or to register a complaint with the Department of Insurance, you may call (800) 927-HELP. Out-of-State residents may call (213) 897-8921.