MerlinLife Disclosure & Consent Agreement

Last Updated: June 12th, 2025

This Disclosure & Consent Agreement ("Agreement") is entered into between MerlinLife, Inc. ("MerlinLife," "we," "us," or "our"), a corporation organized under the laws of the State of Alabama, and each individual who submits an application for MerlinLife's life settlement brokerage services ("user," "you," or "your").

BY CLICKING "AGREE," "SUBMIT," OR A SIMILARLY NAMED BUTTON WHEN SUBMITTING AN APPLICATION, OR BY OTHERWISE ACCESSING OR APPLYING FOR MERLINLIFE'S SERVICES, YOU ACKNOWLEDGE AND AGREE TO THE TERMS OF THIS DISCLOSURE & CONSENT AGREEMENT.

MerlinLife operates as a life settlement broker. In accordance with Alabama law, we are required to make certain disclosures and to obtain your informed consent prior to engaging in any life settlement transaction involving your life insurance policy. This Agreement outlines those disclosures and requests your consent for MerlinLife to use and share your personal information and life insurance policy details as necessary to provide our services and comply with applicable laws.

By proceeding, you expressly consent to MerlinLife's collection, use, and disclosure of your personal and policy information as described herein and further detailed in our Privacy Policy. If you do not agree to these terms, please do not submit an application or use our services.

1. Introduction And Purpose

This section outlines the scope, context, and objective of the Agreement and defines the parties involved. The Agreement is intended to facilitate a Life Settlement Transaction between MerlinLife, Inc. (hereinafter referred to as 'MerlinLife') and you. The Agreement ensures full disclosure to you regarding the necessary details and implications of the transaction. MerlinLife, as a life settlement broker, requires your informed consent to use and share your Personal Information in accordance with applicable laws and MerlinLife's business practices. This section establishes the mutual understanding between both parties based on your right to be properly informed and consent voluntarily.

2. Overview Of Life Settlement Transaction And Alternatives

A Life Settlement Transaction involves the sale of an existing life insurance policy by you to a third-party investor, often at a value greater than the policy's surrender value but less than its death benefit. In such a transaction, you transfer policy ownership and beneficiary rights to the buyer in exchange for a lump sum payment. The buyer then assumes responsibility for future premium payments and collects the death benefit upon your passing. Life settlements can offer you an alternative to lapsing or surrendering your policies, allowing you to unlock value from your insurance that might otherwise go unrealized.

You should be aware of certain alternatives to life settlement transactions, which may better suit your financial situation or personal preference, including but not limited to:

Retaining the Policy: Continuing to maintain the existing insurance, paying the premiums, and eventually providing the death benefit to the named beneficiaries.
Policy Loans: Borrowing against the policy's cash value, if applicable, to meet immediate financial needs while keeping the coverage in force.
Surrendering the Policy: Canceling the life insurance policy for its cash surrender value (if applicable), which is typically lower than what may be received through a life settlement.
Accelerated Death Benefits: Utilizing certain clauses within the insurance policy that allow for the payment of benefits while the insured is still alive, generally in cases where the insured is diagnosed with a terminal illness.
Gift or Donation: Assigning the policy to a charitable organization or another beneficiary as a gift, potentially creating tax advantages.

It is important for you to fully understand these alternatives and consider seeking advice from financial, legal, and tax professionals to make an informed decision about whether a life settlement transaction aligns with your individual circumstances and objectives.

3. Mandatory Disclosures Pursuant To Alabama Law

In compliance with Alabama law, MerlinLife, Inc. (hereinafter 'MerlinLife') provides the following mandatory disclosures to you regarding life settlement transactions:

Definitions:
a. 'Personal Information' includes any information that can identify you, such as name, address, social security number, medical records, and life insurance policy details.
b. 'Settlement Proceeds' refers to the money received by you from a life settlement transaction, which involves selling your life insurance policy.
c. 'Third-Party Buyers' are entities or individuals other than MerlinLife who purchase the life insurance policy from you.
Nature of Life Settlements: A life settlement is a financial transaction in which you sell your life insurance policy to a third-party buyer for an immediate cash payment that is less than the death benefit but more than the cash surrender value.
Alternatives to Life Settlements: You have the right to consider alternatives to life settlements, such as maintaining the existing life insurance policy, electing the accelerated death benefit option, or exploring other financial products or borrowing options.
Risks and Benefits: You must be informed of the potential risks and benefits, including but not limited to tax implications, loss of insurance coverage, and the effect on recipients of government benefits.
Policy Value and Comparison: MerlinLife will provide information on the value offered by the third-party buyer compared to the policy's cash surrender value and death benefit. An analysis of how these values compare must be provided.
Confidentiality and Use of Information: Personal Information will be used only for the purposes of evaluating, facilitating, and completing the life settlement transaction. MerlinLife will ensure that third-party buyers and other involved professionals maintain the confidentiality of all Personal Information received.
Fees and Compensation: A detailed disclosure of all compensation and fees that MerlinLife and any affiliates will receive as part of the life settlement transaction must be provided to you.
Rescission Period: You have the right to rescind the life settlement transaction within a specific period as mandated by Alabama law, typically 15 calendar days, upon receiving the Settlement Proceeds.
Disclosure of Offers: MerlinLife must disclose all reasonably expected offers from potential third-party buyers to you, allowing you to select the best available option.
Impact on Other Benefits: It should be disclosed whether entering into a life settlement transaction may affect your eligibility for public welfare programs, such as Medicaid or Supplemental Security Income (SSI).
State Regulation: You must be informed that life settlement transactions are regulated by Alabama state law, and you can contact the Alabama Department of Insurance for more information or to file a complaint.

These mandatory disclosures aim to ensure that you are fully informed and consent to the terms and conditions of the life settlement transaction. You are encouraged to seek independent financial and legal advice to understand the implications fully.

4. Consequences Of Participating In A Life Settlement Transaction

Participating in a life settlement transaction can have significant consequences for you. This section aims to outline these effects to ensure that you make a well-informed decision before proceeding. The primary consequences include:

a. Loss of Death Benefit: Upon completing the life settlement, you forfeit the right to the policy's death benefit. Any beneficiaries named in the original policy will not receive any proceeds from the policy upon your death.
b. Tax Implications: The proceeds from the life settlement transaction may be subject to federal and state taxes. It is advisable to consult with a tax professional to understand the potential tax liabilities.
c. Impact on Public Assistance: Proceeds from the transaction could impact your eligibility for public assistance programs, including Medicaid and other needs-based benefits.
d. Reduction in Estate Value: The sale of the policy will reduce the overall value of your estate, which may affect estate planning objectives.
e. Loss of Future Insurability: You may face challenges in obtaining new life insurance coverage after participating in a life settlement, or the premiums for new coverage may be significantly higher.
f. Required Disclosures: Personal and medical information will be disclosed to third parties involved in the transaction. This may include potential buyers, life settlement providers, and financial institutions.
g. Transaction Costs: There may be significant transaction costs, including broker fees, that will reduce the net proceeds received by you. A comprehensive summary of these costs should be reviewed before proceeding.
h. Medical Examinations and Information Sharing: Participation in a life settlement may require ongoing medical examinations and sharing of health information with prospective purchasers and other third parties.
i. Future Benefits of Retaining the Policy: You should consider the potential future benefits of retaining the policy, such as continued death benefit protection, potential access to policy loans, or cash withdrawals.

Considering these potential consequences, it is essential that you carefully evaluate both the immediate financial benefits and long-term impacts of the life settlement transaction.

5. User Rights And Voluntariness Of Participation

You acknowledge that your participation in the life settlement transaction is purely voluntary. You have the right to receive all pertinent information regarding the transaction and can request further details or clarifications at any time. MerlinLife, Inc. is committed to respecting your autonomy and ensuring that all decisions are made without any coercion or undue influence. You retain the following rights during the transaction process:

a. Right to Full Disclosure: You have the right to be fully informed about the nature, purpose, benefits, and risks associated with the life settlement transaction.
b. Right to Withdraw: You can withdraw your consent and terminate your participation in the transaction at any stage prior to the final execution, without any penalty or prejudice.
c. Right to Informed Decision: You have the right to consult with legal, financial, and other professional advisors to make an informed decision.
d. Right to Privacy: MerlinLife will adhere to strict confidentiality protocols to protect your personal information throughout the transaction process.
e. Right to Equitable Treatment: You have the right to be treated fairly and equitably in accordance with the terms of this Agreement and applicable laws.

6. Merlinlife's Role And Compensation Disclosure

MerlinLife serves as the broker in the life settlement transaction. As the broker, MerlinLife's primary function is to facilitate the sale of your life insurance policy to a third-party buyer. MerlinLife operates by conducting market research, identifying potential buyers, negotiating terms, and ensuring compliance with applicable laws and regulations. MerlinLife is committed to acting in your best interests throughout the transaction process.

MerlinLife will receive compensation for its services in the form of a commission, which is a percentage of the total settlement amount paid by the buyer. The specific commission percentage is outlined in the agreement with you. MerlinLife may also receive additional fees for services provided, such as administrative handling or processing fees. All compensation details will be transparently disclosed to you prior to the completion of the transaction.

Furthermore, MerlinLife ensures that there are no hidden fees or costs and commits to full transparency in its compensation structure. You acknowledge that MerlinLife's commission is contingent upon the successful completion of the life settlement transaction.

7. Rescission Rights And Procedures

You have the right to rescind this Agreement and withdraw from the life settlement transaction at any time within thirty (30) calendar days from the Effective Date, or fifteen (15) calendar days from the date payment is received, whichever is later. No penalties or fees shall be charged in the event of rescission within this period. In order to exercise the right of rescission, you must follow these procedures:

a. You must provide written notice of your intent to rescind the Agreement. This notice must include your name, address, and policy number.
b. The notice of rescission should be sent to MerlinLife either via certified mail with a return receipt requested, or via a recognized courier service with traceable delivery.
c. MerlinLife shall acknowledge receipt of the rescission notice within five (5) business days and initiate the process to return any policy documents and refund any payments received to you.
d. You must return any funds received in connection with the life settlement transaction to MerlinLife within ten (10) business days of providing the rescission notice.

Upon receipt of the rescission notice and returned funds, MerlinLife will void the transaction and your life insurance policy will remain in force as if the transaction had not occurred.

8. Escrow Arrangements And User Escrow Rights

In connection with the life settlement transaction contemplated herein, MerlinLife shall establish an Escrow Account with a duly appointed Escrow Agent for the purpose of managing and disbursing the Settlement Proceeds. You shall have the following rights and assurances concerning the use and security of the funds held in escrow:

a. Role of the Escrow Agent: The Escrow Agent shall be an independent third party appointed to hold and manage the Settlement Proceeds in accordance with the terms of this Agreement. The Escrow Agent will disburse funds only upon satisfaction of all conditions stipulated herein and upon written instructions from MerlinLife and you.
b. Establishment of Escrow Account: The Escrow Account will be established at a federally insured institution, ensuring that the funds are safeguarded against loss or misappropriation. The Escrow Agent shall maintain accurate records of all transactions related to the Escrow Account and provide periodic reports to both MerlinLife and you upon request.
c. Security of Settlement Proceeds: The Settlement Proceeds deposited in the Escrow Account shall be held in a secure manner, and the Escrow Agent shall implement appropriate measures to protect the funds. The Escrow Agent is forbidden from utilizing the funds for any purpose other than those explicitly stated in this Agreement.
d. User Rights: You shall have the following rights concerning the funds held in escrow:
- d.1 Right to Information: You are entitled to receive detailed information regarding the status of the Escrow Account and the distribution of the Settlement Proceeds upon request.
- d.2 Assurance of Payment: You shall be assured that the Settlement Proceeds will be disbursed as agreed upon in this Agreement, without unnecessary delay, upon fulfillment of all conditions precedent.
- d.3 Right to Raise Concerns: Should you have any concerns regarding the handling of the Escrow Account, you may raise such concerns directly with the Escrow Agent or through MerlinLife, and such concerns shall be addressed promptly.

This arrangement ensures that your interests are protected, that the handling of settlement funds is transparent, and the disbursement process is executed efficiently and securely.

9. Collection, Use, And Sharing Of Personal Information

Personal Information collected from you includes, but is not limited to, name, date of birth, social security number, insurance policy details, medical records, financial information, and contact information. MerlinLife collects this information directly from you through forms, interviews, and other interactions. The information is used primarily to evaluate and process life settlement transactions, ensure compliance with legal requirements, and facilitate communication between you, Third-Party Buyers, and other relevant entities involved in the transaction.

MerlinLife may share Personal Information with Third-Party Buyers, including prospective purchasers of the life insurance policy, institutional investors, and other intermediaries who play a role in facilitating the life settlement transaction. This sharing is strictly on a need-to-know basis and in accordance with applicable privacy laws and regulations.

MerlinLife will ensure that any third parties with whom Personal Information is shared uphold standards of confidentiality and use the information solely for purposes related to the life settlement transaction. You have the right to access the information that MerlinLife has collected, correct any inaccuracies, or request deletion of your Personal Information, subject to legal obligations and transaction requirements.

10. Medical And Insurance Record Authorization (Hipaa Compliance)

In accordance with the Health Insurance Portability and Accountability Act (HIPAA), you consent and authorize MerlinLife to have access to, retrieve, and utilize your medical and insurance records for the purpose of evaluating and processing life settlement transactions. This HIPAA Authorization permits MerlinLife to collect, use, and share medical information, including but not limited to medical history, treatments, diagnoses, and insurance policy details, from healthcare providers, insurance companies, and any other entities involved in your care or coverage. Your consent is granted voluntarily and remains effective until the completion of the life settlement transaction or until rescinded by you in writing. You acknowledge that this consent and authorization are critical for MerlinLife to perform its role as a life settlement broker efficiently and in compliance with legal standards.

11. Data Ownership, Usage, And Retention

You retain full ownership of your personal data provided to MerlinLife. MerlinLife acknowledges and agrees that any personal information collected, used, or shared under this Agreement remains your exclusive property. MerlinLife shall use your data solely for the purposes outlined in this Agreement and as permitted by all applicable laws and regulations. MerlinLife shall ensure that your data is only retained for as long as necessary to fulfill the purposes of this Agreement and in compliance with prevailing data retention policies and legal requirements. Upon the fulfillment of these purposes, or upon your request, MerlinLife shall securely delete or anonymize your data, subject to any legal obligations to retain such information. MerlinLife shall also implement appropriate measures to protect the data against unauthorized access, use, or disclosure and shall provide you with details of data retention practices upon request.

12. Data Security Practices, Breach Notification, And Client Rights

MerlinLife is committed to protecting the confidentiality, integrity, and availability of your personal information. We employ industry-standard cybersecurity practices including encryption, secure data storage, and access controls to safeguard against unauthorized access, disclosure, alteration, or destruction of data. In the event of a data breach, MerlinLife will promptly investigate and notify you of the breach, detailing the nature of the incident, the data affected, and steps taken to mitigate the breach and prevent future occurrences. You have the right to inquire about our cybersecurity measures and the specifics of any breach notification, and MerlinLife will provide comprehensive support to address concerns.

13. User Rights To Access, Correction, And Deletion Of Data

You have the right to access, correct, and delete personal data collected by MerlinLife, as stipulated in this Agreement. The procedures for exercising these rights are as follows:

Access to Data: You may request access to your personal data held by MerlinLife by submitting a written request to MerlinLife's Data Protection Officer. MerlinLife will provide the requested information within thirty (30) days of receipt of the request.
Correction of Data: If you identify any inaccuracies or incomplete information in your personal data, you may request corrections by providing written notice to MerlinLife's Data Protection Officer detailing the necessary amendments. MerlinLife will update the information within thirty (30) days of receiving the correction request.
Deletion of Data: You may request the deletion of your personal data at any time by submitting a written request to MerlinLife's Data Protection Officer. MerlinLife will erase the data within thirty (30) days of receiving the deletion request, except where retention is required by law or necessary for MerlinLife's legitimate business purposes.

To make any of these requests, you must provide adequate identification and verification information to ensure the security of your data. MerlinLife reserves the right to seek additional information if necessary to verify your identity and process the request. All requests and correspondence should be directed to MerlinLife's Data Protection Officer.

14. Limits On Use And Sharing Of Personal Information

MerlinLife acknowledges the importance of maintaining the confidentiality of your personal information. To ensure the protection of sensitive data, MerlinLife commits to the following limitations on its use and sharing of said information:

MerlinLife shall not use your personal information for any purpose other than executing the life settlement transaction and related administrative functions.
MerlinLife shall not share your personal information with any third parties, except as necessary to facilitate the life settlement transaction, and only with entities that have agreed to maintain the confidentiality of such information.
MerlinLife shall comply with all applicable laws and regulations governing the use and disclosure of personal information, including but not limited to HIPAA, state privacy laws, and federal regulations.
MerlinLife shall ensure that any third parties involved in the life settlement transaction (such as escrow agents, medical record reviewers, and potential buyers) adhere to the same confidentiality standards regarding your personal information.
MerlinLife shall retain your personal information for no longer than required to complete the life settlement transaction and any related processes, after which the information shall be securely deleted or destroyed.
In the event of any breach or unauthorized access to your personal information, MerlinLife shall promptly notify you and take appropriate remedial actions.

By consenting to this Agreement, you acknowledge your understanding of and agreement with these limitations on the use and sharing of your personal information.

15. No Guarantee Of Offer

MerlinLife does not guarantee that any life settlement transaction will result in an offer for your life insurance policy. You acknowledge that MerlinLife will endeavor to secure offers from potential buyers, but the receipt or acceptance of any offer is contingent upon several variables including, but not limited to, the market conditions, the health of the insured, policy characteristics, and investor interest. Moreover, the final decision to accept or reject any offer remains solely at your discretion. MerlinLife shall not be held liable if no offer is received or accepted in connection with this Agreement.

16. Tax And Financial Implications

Participating in a life settlement transaction can have various tax and financial consequences for you. It is important for you to understand these implications before proceeding. The potential effects include, but are not limited to:

Taxable Income: The proceeds received from the sale of a life insurance policy in a life settlement transaction may be considered taxable income by the Internal Revenue Service (IRS) and state tax authorities. The amount of taxable income can vary based on the basis and the gain realized from the sale.
Impact on Government Benefits: The receipt of proceeds from a life settlement transaction may affect your eligibility for certain government benefits, such as Medicaid and Supplemental Security Income (SSI). It is crucial for you to seek advice from a qualified advisor regarding the potential impact on such benefits.
Estate Planning Considerations: Engaging in a life settlement transaction may have implications for your overall estate plan. You should consult with an estate planning professional to understand the effects on your estate and any relevant strategies to minimize tax liabilities.
Fees and Expenses: You should be aware that there may be fees and expenses associated with the life settlement transaction that could affect the net financial benefit received by you.
Alternative Financial Solutions: You are encouraged to explore other financial solutions and alternatives to a life settlement transaction. These may include policy loans, accelerated death benefits, or other financial planning strategies that may align with your long-term financial goals.

MerlinLife strongly recommends that you seek advice from qualified legal, tax, or financial professionals to fully understand the tax and financial implications of participating in a life settlement transaction. MerlinLife does not provide tax, legal, or estate planning advice and strongly encourages you to consult with your advisors to make an informed decision.

17. Accuracy Of Information And User Obligations

You acknowledge that MerlinLife relies on the accuracy and completeness of the information provided by you in the evaluation and processing of life settlement transactions. As such, you agree to the following obligations:

a. Accurate Disclosure: You shall provide accurate, complete, and up-to-date information regarding all personal details, medical history, life insurance policy information, and any other relevant details that may affect the life settlement transaction.
b. Ongoing Cooperation: You agree to cooperate fully and promptly with MerlinLife in providing any additional information or documentation that may be required during the life settlement process, including responding to requests for information and attending any required medical examinations or interviews.
c. Notification of Changes: You agree to notify MerlinLife promptly of any changes to your personal information, medical condition, or life insurance policy status that may occur during the life settlement transaction process. This includes but is not limited to changes in address, contact information, or beneficiary designations.
d. Truthfulness of Information: You affirm that all information provided is true, accurate, and not misleading. You understand that providing false, misleading, or incomplete information may result in the termination of the life settlement transaction and potential legal consequences.
e. Legal Obligation: You understand and agree that you are legally obligated to fulfill the above requirements and that failure to do so may affect your rights under this Agreement and any related life settlement transactions with MerlinLife.

18. Governing Law And Venue

This Agreement and the rights of the parties hereunder shall be governed by and construed in accordance with the laws of the State of Alabama, without regard to its conflicts of law principles. Any dispute, controversy, or claim arising out of, relating to, or in connection with this Agreement, including the breach, termination, or invalidity thereof, shall be submitted to the exclusive jurisdiction of the state courts located within Jefferson County, Alabama or the federal courts located in the Northern District of Alabama, provided that such courts have authority over the subject matter. You hereby consent to the jurisdiction of such courts and waive any objection to jurisdiction or venue in such courts. This provision will be effective as of the Effective Date.

19. Severability

If any provision of this Agreement is found to be invalid, illegal, or unenforceable in any respect by a court of competent jurisdiction, the validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired. In such a case, the parties agree to negotiate in good faith to modify the invalid or unenforceable provision to reflect the original intent as closely as possible, in a manner that is valid and enforceable.

20. Electronic Signature Consent

By clicking "Agree," "Submit," or a similar action to accept this Agreement electronically, you understand and agree that your electronic acceptance has the same legal effect as a handwritten signature. You consent to the use of electronic records and signatures for all agreements and documents related to our services. Participation in electronic signing is voluntary, and you may request paper versions of these documents by contacting us at any time. It is your responsibility to keep your login credentials secure; any actions taken through your account will be presumed to be authorized by you unless you notify us otherwise.

21. Amendment and Waiver

MerlinLife may update or amend this Agreement from time to time. Material changes will be communicated by posting an updated version on this website or by other reasonable means. By continuing to use our services after changes become effective, you agree to be bound by the revised terms. No waiver of any provision of this Agreement will be effective unless in writing and signed by an authorized MerlinLife representative.

22. Notices

All communications about this Agreement, including updates or disclosures, may be provided electronically, either by posting on this website or by sending an email to the address associated with your account. It is your responsibility to keep your contact information current.

23. Acknowledgment of Review and Understanding

By accepting this Agreement electronically, you confirm that you have reviewed and understand its terms, including all disclosures regarding the collection, use, and sharing of your personal information. Your consent is given voluntarily and without coercion.