FORM WFI.NMDISC.EF2/08 © 2008 Welcome Funds Inc
WELCOME FUNDS INC.
4755 TECHNOLOGY WAY
SUITE 202
BOCA RATON, FL 33431
TOLL-FREE: 877.227.4484
PHONE: 561.862.0244
FAX: 561.862.0242
WWW.WELCOMEFUNDS.COM
NEW MEXICO -- NOTICE OF DISCLOSURE
1. WE
LCOME FUNDS INC and your referring advisor/broker,
if any, represents only you and shall act according to your
instructions and in your best interest notwithstanding the
manner in which WELCOME FUNDS INC and your
referring advisor/broker, if any, is compensated.
2. Some or all of the proceeds of your viatical settlement may
be taxable under federal income tax and/or state franchise
and income tax laws. WELCOME FUNDS INC is not a tax
advisor and recommends that you consult your own
professional tax advisor regarding this transaction.
3. The sale of your insurance policy may affect your right to
receive Medicaid or other government benefits or
entitlements. Advice on such effects should be obtained
from the appropriate government agencies.
4. Viatical settlement proceeds could be subject to the claims of
creditors.
5. There may be possible alternatives to selling your life
insurance policy. Alternatives may include the option of an
accelerated death benefit or policy loans offered by your life
insurance company. You are advised to consult a financial
advisor, certified public accountant and/or an attorney
regarding these potential alternatives.
6. Once you have received your proceeds from the sale of your
life insurance policy, you will have fifteen (15) calendar days
from receipt of the proceeds in which to rescind the
transaction. If the insured dies during the rescission period,
then the settlement contract shall be deemed rescinded,
subject to repayment of all settlement proceeds.
7. Funds will be sent to you within two (2) business days after
the insurer or group administrator’s acknowledgment that
ownership of the policy or interest in the certificate has been
transferred and the new beneficiary has been designated.
WELCOME FUNDS INC and your referring advisor/broker,
if any, has no access to or control over any viatical settlement
provider’s funds that are set aside in escrow or trust.
8. Entering into a viatical settlement contract may 1) 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; and 2) reduce the insured’s ability to obtain
additional life insurance coverage in the future. Assistance
should be sought from a professional financial advisor.
9. Total compensation payable to WELCOME FUNDS INC
and your referring advisor/broker, if any, shall collectively
not exceed a maximum of 8% of the Net Death Benefit
(NDB) of your policy. Proceeds of your viatical settlement
are represented by the Net Purchase Price (NPP) as follows:
NPP = Gross Purchase Price (GPP) as paid by the viatical
settlement provider reduced by the total compensation as
described above.
10. All medical, financial or personal information solicited or
obtained by a viatical settlement provider, broker and/or
referring advisor/broker 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 viatical settlement between you and
the viatical settlement provider. The information may be
presented to someone who buys the policy or provides funds
for purchase. Check your viatical settlement contract to see if
and when your permission to share this information may be
requested for renewal. In addition, 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; and 2) shall be available to each
subsequent owner of the life insurance policy
11. The insured may be contacted by either the viatical
settlement provider or WELCOME FUNDS INC or its
authorized representative for the purpose of determining the
insured’s health status. The viatical settlement contract will
define the contact limitations in detail.
12. Any person who knowingly presents false information in an
application for a viatical settlement contract is guilty of a
crime and may be subject to penalty, including but not
limited to fines and confinement in prison.
13. WELCOME FUNDS INC recommends that you read the
viatical settlement contract and seek assistance from a
professional financial advisor and/or consult with your legal
advisor prior to signing it.
14. I/we confirm and acknowledge that WELCOME FUNDS
INC has provided me/us with the most recent brochure
developed and/or approved by the National Association of
Insurance Commissioners (NAIC) describing the process of
viatical settlements.
I/We acknowledge that I/we have read and understand the disclosures above (1-14).
___________________________________________ _________________________________ ________
Signature of Primary Insured Printed Name Date
___________________________________________ _________________________________ ________
Signature of Secondary Insured (if applicable) Printed Name Date
___________________________________________ _________________________________ ________
Signature of Policy Owner #1 (if not Insured) Printed Name Date
___________________________________________ _________________________________ ________
Signature of Policy Owner #2 (if not Insured) Printed Name Date