Do you think there is a good opporunity here?

[Winter_123]

I have heard the market to look for is the people who bought Allianz annuities because they can't get out a lump sum,
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Although I am not in the settlement market, I would think that, rather than annuities, the stronger market would be with buying out existing insurance policies. I think Coventry is one of the leaders in that field.

Normally, it is not good to cash out out an insurance policy but in limited, full disclosure instances, I think it could make sense. Quite often an older person might have had insurance to take care of the wife and then she dies first and now he does not perceive the need for insurance, at least as much as before. He sells his policy and the purchasing company now becomes the beneficiary but the insured gets (often) much more for the settlement than he would have gotten just for the cash value of the policy. As stated, it usually is not good to cash out a policy but in a full disclosure transaction that is for the client to decide. There are many people out there getting older and their original need for insurance has changed dramatically. They may have a policy where they are worth $500,000 dead to their heirs but really should consider selling it for a settlement and purchasing a long term care policy. Something that will help them here and now. It may piss the heirs off but they are not your client.

I throw this out for consideration anyway. I have not done all of my thinking on settlements yet. I do understand how shlocky agents can abuse but that is a separate issue from whether they can be right in certain circumstances with full disclosure. I have gotten appointed with Coventry in case I want to at least get a quote for a client.

Winter

 

[senior-advisor-indiana]

I thought we were talking about annuity buy outs, not life settlementa and viaticals.

 

[Winter_123]

I thought we were talking about annuity buy outs, not life settlementa and viaticals.

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We were and then then when it was mentioned that annuity buyouts were a slim market, I mentioned why settlements might be better. Both involve converting an existing policy into a lump sum settlement. Some may see the connection. Some may not.

Winter