Life Settlement

[warrenins]

Wondering if anyone can point me in the right direction regarding Life Settlements.
A friend of mine, female age 69 has a UL policy with a face amount of $250,000. Because of life situations she has never really been able to prepare for retirement (kids "needing" money, etc...). She would like to be able to live out her remaining years in some sort of comfortable mode. I mentioned life settlement to her as a possible way to help in that area. Although I'm an agent I'm researching this as a friend only. I told her I have heard about it and read just a little about it but it was out of my area of expertise.
Are there reputable companies out there that I could help her get in touch with?

p.s. I don't think the policy has very much cash value so that really isn't an option to surrender the policy for the cash.

 

[HomeService]

Generally speaking, life settlements have a horrible reputation for being less than legal, and corrupt, and generally something you should stay away from. I am not accusing anybody, nor slandering, I am just saying they have a bad reputation- in general. Maybe you can find some legit deal, I don't know, but research this thing really, really well.

 

[The Rabbi]

The life settlement business is no different than any other American industry, full of greed.

There are good companies. One is Life Partners. However, they buy policies of those who are terminally ill.

If you friend has a paid for home or plenty of equity, she would do well with a reverse mortgage if it will work out. If she has a small mortgage, she can eliminate the payment.

 

[lifesettlementadvisor]

Life Partners is not a reputable company. They are one of the only ls companies that have actually been banned from a handful of states.

If you friend can wait, have her wait till Feb or March to sell her policy, the market is pricing very low right now but is estimated to bounce back in Feb.

What area are you in and I'll refer you to a good broker close to you.

 

[Mr. Bill]

Oh I am so glad you just mentioned Life Partners, as I just got referred to them!

 

[lifesettlementadvisor]

gwg is a great provider. they have a number of different programs. they can even wipe the premium financing clean off of a policy to increase the value of it on the secondary market. If you are going to submit to them, you should also submit to a broker to make sure their offer is competitive.

Mark, just checked out your website. Now that you added life settlements to it, you have to have the website approved by different departments of insurances. TX is a stickler about this. You either need to get the approval number listed on your site or have a disclaimer box pop up saying the site is not approved for TX residences. Also you need a disclaimer line somewhere on your site saying the site is for agent use only and not the general public. All the DIs will come down on you for that one.

 

[lifesettlementadvisor]

for an example of what I was talking about check out this broker's webiste

NAF Funding

they have it scrolling at the top...

 

[gklein]

Lifesettlementadvisor-
I will pass along your kind words about GWG, and agree with your statement regarding using a life settlement broker to get a competitive offer.
The entity Mark is referring to, however, is GWG Advantage, a full service life settlement broker, and sister company of GWG Life, the provider you speak of. GWG Advantage brings compliance, transparancy, support and training to agents and agencies like Mark and his company. Agents that want to present potential innovative options to their clients who may not have realized the asset they could have.
I know that this sounds the same among life many life settlement brokers, but l hear similar things to what Mark said from our clients all the time.
Check us out on the web or our newsnet!

Garrett Klein
Regional Sales Manager
GWG Advantage

 

[lifesettlementadvisor]

Lifesettlementadvisor-
I will pass along your kind words about GWG, and agree with your statement regarding using a life settlement broker to get a competitive offer.
The entity Mark is referring to, however, is GWG Advantage, a full service life settlement broker, and sister company of GWG Life, the provider you speak of. GWG Advantage brings compliance, transparancy, support and training to agents and agencies like Mark and his company. Agents that want to present potential innovative options to their clients who may not have realized the asset they could have.
I know that this sounds the same among life many life settlement brokers, but l hear similar things to what Mark said from our clients all the time.
Check us out on the web or our newsnet!

Garrett Klein
Regional Sales Manager
GWG Advantage

Garrett

I am aware of the difference between the two different GWG, but didn't feel like bashing it on the forum.

I do think that GWG is a good provider, but it is ridiculous that yall spun off a separate brokerage company. It is just a way for GWG to take a commission on the policies that you are buying for yourself. I am sure you are going to come back and say that GWG does shop it out to other providers, but at the end of the day, you are still owned by the provider and your loyalties are to them. A good broker should be independent of all providers and have the best interest of the agent/senior in mind. While I am sure you have the best intentions, this is not the case with the GWG brokerage.

 

[gklein]

Lifesettlementadvisor-
I sincerely respect your experience and knowledge in this area. Your concern is a common one that we hear from many potential clients, and for good reason. Other companies have done what you are describing. GWG has not. Our philosophies (yours and ours) are aligned as we feel our fiduciary duty is to that senior client and advisor.
I think it is important to note that with our process GWG Advantage discloses the provider's offers to the client and agent, actually we disclose the highest 7 offers received. Our sister company has only purchased less than 10% of all the business we have brokered, due to our goal of finding the highest fair market value possible for the client.
I appreciate your expertise and valid questions, and thank you for the opportunity to answer them. For any more specifics, please contact me on a private message.
Thank you again-

Garrett Klein