Frequently Asked Questions
The Funds for Living Program helps alleviate your financial worries by giving you access to part of your life insurance benefit now and leaves money for your loved ones later. It works like a loan, but unlike a mortgage or car loan, there are no monthly payments due and all costs are repaid out of the proceeds of your life insurance policy.
First, submit a no cost application to Fifth Season Financial. There are three key requirements:
- You have been diagnosed with a life-threatening or advanced stage illness, such as a late-stage (Stage III or IV) cancer, ALS, kidney/renal disease, COPD advanced stage heart disease, Alzheimer’s, etc.
- You own a life insurance policy with a total death benefit of at least $75,000, issued in the United States. ($200,000 minimum for group policies). Almost all policy types are eligible.
- You are a United States citizen or permanent resident.
We work with individuals who have many different diagnoses, including Stage III or IV cancers, kidney/renal disease, ALS, COPD, advanced stage heart disease, Alzheimer’s disease, and other diseases. Typically, those who qualify for the program have life expectancies of one to eight years.
We accept individual, group and employer-provided term or whole life insurance policies, and no cash surrender value is required. There are several requirements for eligibility, including:
- Your life insurance policy must be issued by a U.S. based life insurance company
- Your policy must be transferable or collaterally assignable to Fifth Season Financial
- Your policy must have been issued more than two years ago
- You must have one or more life insurance policy with a total death benefit of at least $75,000 and $200,000 minimum for group policies
The amount of the advance is based on several factors, including:
- The projected life expectancy of the insured
- The net death benefit of the life insurance policy
- The projected amount of remaining life insurance policy premium payments
- The type of policy and specific life insurance company.
Once Fifth Season Financial considers all factors, the advance you may receive is generally between 20 and 60 percent of the policy’s death benefit.
Once we receive a complete application, set of medical records and a verification eligibility of your life insurance policy (with your approval, our team will help assemble these for you), the process takes about three weeks, but can vary.
There are no application fees or out of pocket expenses. Like all companies that provide loan services, there is a management fee. The management fee is NOT paid in cash. The management fee is added to the balance of the loan and is paid solely out of the policy proceeds.
Interest rates vary by state. Please contact us for specific rates that apply to your case. The interest rate will be clearly identified in your proposal documents. Like the management fee, the interest rate is added to the balance of the loan and is paid entirely out of the life insurance death proceeds.
We will pay future premiums on your life insurance policy. The premiums paid by Fifth Season Financial will be added to the principal balance of the loan. In some cases, the terms of the insurance policy do not allow Fifth Season Financial to pay premiums directly, in which case Fifth Season Financial will reimburse the premium amount paid by the insured.
All advances, interest, management fees and premium payments are repaid out of the life insurance policy’s death benefit. After that, all surplus funds are paid to your designated beneficiaries.
The beneficiary collects the remaining death benefit after the initial loan amount, the premiums, interest and management fee have been repaid. Participants in the Funds for Living Program have on average retained 82% of the face value of their life insurance policies. In the rare case, that the amount owed exceeds the outstanding balance, neither you nor your family is responsible to repay any shortfall on the loan.
The advance is based on several factors, including:
- The projected life expectancy of the insured
- The size of the life insurance policy
- The projected amount of policy premium payments
- The type of policy and specific life insurance company
Once Fifth Season Financial considers all factors, the advance is generally 20-60% of the policy’s death benefit.
The funds advanced under the Funds for Living Program are generally not taxable. However, since each situation is unique and Fifth Season Financial does not provide tax, legal or financial advice; we recommend you speak with your legal, tax or estate planning advisor.
Yes, you can choose to pay back your advance (and costs incurred during the period, like premiums and management fees) at any time without any prepayment penalty.
If you encounter a more rapid disease progression, it may be possible to increase the advance amount upon re-evaluation. Should your medical condition unexpectedly improve or stabilize, your obligations and Fifth Season’s obligations do not change
All information concerning your medical condition will remain strictly confidential. Access to your medical information is controlled and limited to Fifth Season employees, consulting physicians, other Fifth Season advisors who are subject to confidentiality obligations, and those other persons specified in the Confidentiality Agreement. Fifth Season Financial is fully compliant with HIPAA (Health Insurance Portability and Accountability Act) regulations and standards, and is committed to protecting your privacy.
Our staff has years of experience and is dedicated to personalized, friendly, compassionate customer service with no pressure or sales pitch; you will never be treated as a number. Our core values of integrity, empathy, trust, privacy and confidentiality are embedded in every interaction.
We take the time to educate you on our program. We work with you and your specific needs to provide a financial solution that works best for you and your family. A dedicated Fifth Season Financial program manager or program director will work with you to ensure that you understand all facets of your case. In addition, Fifth Season Financial will manage all of the administration. We strive to make the process as stress free and straight forward as possible.
We were the first to pioneer this financial solution and have been providing funds to individuals with advanced stage illnesses since 2007. Since its inception Fifth Season Financial has provided financial assistance to over 800 individuals and has loaned individuals over 318 million dollars. We are a licensed consumer lender and an A+ member of the Better Business Bureau.
We are well-staffed with nearly two dozen industry leaders and consulting physicians who are experts in their fields.
The Funds for Living Program is a specialty loan while a life or viatical settlement is the sale of your life insurance policy. A viatical settlement or policy sale will provide you with a one-time lump sum payment with no future benefits (even if your health changes or you pass away earlier than expected). The Funds for Living Program typically provides two payments, one to you now, and one to your beneficiaries later. Learn more
The Funds for Living Program has some similarities to a Reverse Mortgage. Like a reverse mortgage, it works like a loan, does not have to be repaid during the borrower’s lifetime and the proceeds are not generally taxed as income or otherwise.
Want To Get Started?
Want To Get Started?
Do you have a question or would like to know if you qualify? We’d love to hear from you. Here’s how you can reach us…
See if You Qualify
Request a call or email from a Funds for Living Representative who can answer any questions or concerns you might have.