Life Settlement Leads

Discussion in 'Life Settlements Forum' started by hex, Feb 21, 2017.

  1. hex
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    hex New Member

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    I'm new to this site and greatly appreciate any feedback. I'm relatively new to the life settlement industry and have joined up with someone that has been doing life settlement for a while, but sourcing leads based on personal relationships. I'm looking to expand outside of these personal relationships and would love to hear any advice on this industry from this forum. What's the best way to get started and source leads for this industry? Do any companies sell leads specifically for Life Settlement? Thanks in advance.
     
  2. JNugent2
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    JNugent2 Member

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    The lead generation services for this industry are very new and not established as in other insurance markets. Additionally, most new efforts are driven or created by life settlement brokerages.

    Keep in mind that the transaction concept and benefits are still very niche and not well known among the consumer market.

    What is the best way to get started? Build your professional adviser network (i.e. Estate Planning JDs, CPAs and life agents) and educate them on the opportunity; Alternative to lapsing or surrendering policies, Creating new assets/cash for investment management, New consumer capital to generate new premiums, etc.

    Next, focus your pitch on how you can help them increase their revenues by executing the processes for them, i.e. This is your core focus, you're the expert - Let the expert do the heavy lifting for them.

    Keep in mind, they have a fiduciary obligation to present all opportunities or alternatives to their clients when it comes to surrendering or lapsing unwanted policies - You are the solution to find the best outcome for their clients without their added burden of work.
     
  3. goillini52
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    goillini52 Well-Known Member

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    What a ghoulish way to make a living. :confused::swoon:
     
  4. JNugent2
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    That statement is analogous to saying that insurance agents are just like used cars salesmen or door-to-door magazine sales; a shameless sales person pushing overpriced junk.

    I just finished a transaction for a 70 year old female client with a $100K Protective UL policy; She was still PFD NS risk but could no longer afford the $140/mo premiums (to carry to age 85 - $244/mo to age 100). The CSV was ~$800.00.

    The transaction took ~40 days. She received a check for $3,500.00.

    Yeah, it is a terrible career to explain on a first date but I slept easy knowing that I just helped someone generate an extra $2,700.00 to cover their expenses.

    Perhaps if more insurance advisers thought big picture, insurance agents would be respected as much as they ought to be.
     
  5. goillini52
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    goillini52 Well-Known Member

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    I can't imagine investing in someone's death. That's the other side of what you do. Here's a policy you can buy...she's only got 2 months to live, so you won't have your money tied up very long before you can cash in.

    Like I said...ghoulish.:no:
     
  6. JNugent2
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    Understandable why you would hold such a viewpoint but then again a narrow focus limits one's ability to see the fallibility in such a viewpoint.

    Note that the OP of this thread was discussing life settlement brokerage; a specialty focus or service that has provided consumers a way to monetize an otherwise illiquid asset. In every instance, the net proceeds are in excess of the cash surrender value of the underlying policy (And additionally, afford a way for advisers to generate new revenue on old business).

    That's a very consumer-first service, providing them much more and often, much needed income when facing a cash shortfall leading to a lapse or surrender of a valuable life insurance policy. -- The very point of my intention in responding to your comment.

    Since your focus on the ghoulishness of the investor's focus, consider the following when asking yourself "Why?".

    In the current markets:

    *Government Bonds offer 3.1% at best (30-year)
    *AIG Corporate bonds (A+/A rating) yield 2-4.5% (up to 30 year bonds)
    *A life settlement policy with a life expectancy 5-15 years (statistical mean) issued by AIG trades at 12-15%

    Life insurance claims are paid ahead of any senior secured debt of an insurance carrier (and regulators will not let them get in financial trouble) and financial market changes do not impact life expectancy.

    In an environment of low yields for superior credit risk and a world of private equity investors struggling to stay above a 10-12% consistent return, investment managers are able to provide a steady, high credit quality, non-correlated investment return to their investors.

    That's a home run investment for pensions, insurance & re-insurance carriers and large wealth management funds, all of whom are active investors.

    You say ghoulish, I say an innovative 'win-win'.

    Feel free to reach out for more information if any of your clients ask for your advice when facing a policy surrender or lapse.
     
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