Disclaimer &
Disclosure
Disclaimer
Services not available in all states. Call for approval and
availability. Disclosure
Notice and Advice to Policy Owner and Insured
1. Some or all proceeds of your viatical/life settlement
may be taxable under federal income tax and state franchise
and income taxes. Chesapeake Financial Settlements, LLC
urges you to consult your own attorney and/or tax advisor
concerning the transaction. Chesapeake Financial Settlements,
LLC makes no representations and gives no advice concerning
the tax treatment of the proceeds of this transaction.
Information on these options should be obtained from your
financial advisor.
2. There are many alternatives to the
life/viatical settlement process for which you may be
eligible, including but not
limited to: a) “Accelerated or Living Benefits Options” offered
by the insurer, b) borrowing against the cash value of
the policy, or c) surrendering the policy for cash value.
Information on these options should be obtained from your
financial advisor.
3. Some or all of your life/viatical settlement transaction
may strongly affect your eligibility for Medicaid, supplemental
Social Security Income or other government benefits and
entitlements. Advice on such effects should be obtained
from appropriate agencies or obtained from your financial
advisor.
4. The proceeds of a life/viatical settlement could be
available to successful civil claims, bankruptcy trustees,
or creditors.
5. Your entering into a contract may cause other rights
or benefits, including conversion rights and waiver of
premium benefits that may exist under the policy, to be
forfeited by the viator. Assistance should be sought from
a financial advisor.
6. Chesapeake Financial Settlements, LLC
will be compensated. The compensation will never exceed
the lesser of 33% of the Net Offer (Gross Offer from Provider – cash surrender value) or 6% of the policy’s Face Amount.
7. Chesapeake Financial Settlements, LLC will only process
your life insurance policy through licensed life/viatical
providers/purchasing companies to the extent required by
applicable law.
8. Once you have received your proceeds from the sale
of your life insurance policy, you will have thirty (30)
days from the date of the contract or fifteen (15) days
from the receipt of the settlement proceeds, whichever
is less, in which to rescind the transaction. If the insured
dies during the rescission period, the settlement contract
shall be deemed rescinded, subject to repayment of all
life/viatical settlement proceeds and any premiums, loans
and loan interest to the viatical/life settlement provider
or purchaser.
9. Funds will be sent to you within
three (3) business days after the life/viatical settlement
provider has received
the insurer or group administrator’s acknowledgment
that ownership of the policy or interest in the certificate
has been transferred and the beneficiary been designated.
10. The insured may be contacted by
either the life/viatical settlement provider or Chesapeake
Financial Settlements,
LLC or its authorized representatives for the purpose of
determining the insured’s health status. This contact
will be limited to no more frequently than once every three
(3) months if the insured has a life expectancy of more
than one year, and not more than once per month if the
insured has a life expectancy of a year or less.
11. All medical, financial, or personal
information solicited or obtained by a viatical/life
settlement provider or life/viatical
settlement broker about an insured, including the insured’s
identity or the identity of family members, a spouse or
significant other may be disclosed as necessary to effect
the life/viatical settlement between the viator and the
life/viatical settlement provider. If you are asked to
provide this information, you will be asked to consent
to the disclosure. The information may be presented to
someone who buys the policy or provides the funds for the
purchase. You may be asked to renew your permission to
share information every two years.
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