Anyone in the life-settlement biz?

[ABC]

I looked into the life settlement market.

It has its place. If you have a client or prospect that has a term policy that is ready to expire and they are of age. If you can convert it to a U&L and then sell it for maybe a 22% of the death benefit. Broker/Agent commish. is going to come from that 22% as I understand it.

Another spot that it seems like a possible option is if the client has an U&L policy that has not performed very well and they are of age. Take it out to market sell it and then sell your client a term policy.

The wealthy option is where you have a client with high net worth and of age. Over 10 million net worth and you sell them a policy that you know in 2 years you are going to take it out to market and try to sell it. Let say you sell them a $5,000,000 policy and they go out and take a loan out to pay the premiums. Your able to sell it and get the client $1.2 million and after the fees and premium they walk a way with $600,000.

These have been the 3 options that have been presented to me.

 

[lifesettlementadvisor]

I looked into the life settlement market.

It has its place. If you have a client or prospect that has a term policy that is ready to expire and they are of age. If you can convert it to a U&L and then sell it for maybe a 22% of the death benefit. Broker/Agent commish. is going to come from that 22% as I understand it.

the broker/agent commission does come from the 22%. Standard is 6% (3 to agent 3 to broker). But most brokers will work with the client to make sure they are happy with the deal, even if it shrinks their commission.

Most term conversions are sold in the mid to high teens.

Another spot that it seems like a possible option is if the client has an U&L policy that has not performed very well and they are of age. Take it out to market sell it and then sell your client a term policy.

These are the easiest to sell. Prices range from the 20s-30s.
Agents make a commission from the life settlement sale, the sale of the new product and residuals on both.

The wealthy option is where you have a client with high net worth and of age. Over 10 million net worth and you sell them a policy that you know in 2 years you are going to take it out to market and try to sell it. Let say you sell them a $5,000,000 policy and they go out and take a loan out to pay the premiums. Your able to sell it and get the client $1.2 million and after the fees and premium they walk a way with $600,000.

These have been the 3 options that have been presented to me.

This market is currently frozen. After all the stuff that has been going on, nonrecourse and hybrid lenders have frozen funding. Should resume next quarter.

Mountain Financial is still pitching this process. Personally I think they say they have private lenders, but their plan is to drag their feet and hope underwriting takes so long that the prefi market comes to life when the policies need their loans.

 

[LifeInsuranceMan]

i have been using NWFG LLC for my settlements. They have been reliable. The guy that I deal with is Chris at [email protected]

Chris,

I work for a company that is a provider in the industry that also orginates policies in all 50 states... being that we are very uniquely positioned in the industry, we can offer some very creative products on the front end.

At any rate, I would love to talk with you about any of your cases which you were looking to settle. Chances are, even if you cannot settle with another settlement company/provider, you will probably be able to do some very creative things with us.

Please contact me at [email protected] for more information. I would love to chat.

Best Regards,
LifeInsuranceMan
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Chris,

I work for a company that is a provider in the industry that also orginates policies in all 50 states... being that we are very uniquely positioned in the industry, we can offer some very creative products on the front end.

At any rate, I would love to talk with you about any of your cases which you were looking to settle. Chances are, even if you cannot settle with another settlement company/provider, you will probably be able to do some very creative things with us.

Please contact me at [email protected] for more information. I would love to chat.

Best Regards,
LifeInsuranceMan

...woops, I meant to adress my response to you Rich0606, not Chris. Regardless, if you have some time, please get back to me.

Thanks.
LifeInsuranceMan