Life Settlements / Viaticals

Sep 11, 2008

  1. myinsurebiz
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    myinsurebiz Guru

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    Anyone here marketing these?

    Had a friend tell me about how he turned one of his customers that had a $500k Term policy and was given less than 2 years to live, onto a company that bought his policy for $360k AND paid my friend a commission of $18k . . .

    The monthly premium is only $98 - so, the Viaticle company will only have $3528 in it if the guy lives a year longer @ 36 months + the $360k - a 27%+ return . . .

    Anyone doing these deals?

    Tom
     
    Last edited: Sep 11, 2008
  2. Mr. Bill
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    Mr. Bill Guru

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    There are a lot of variables but in certain instances they may work. The viaticals, though, may be a push. What would your friend's customer have received if he(she) would have approached the insurance company directly? Did they even look at that? If not, then.....well.....that's what attorneys are for.
     
    Mr. Bill, Sep 11, 2008
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  3. myinsurebiz
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    myinsurebiz Guru

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    #1 - I doubt any Insurance company would have made the offer the Viaticle company did - ? It was a term policy - had no cash value or surrender value. The client wasn't even 40 years old.

    #2 - LOL - funny you said that - the client was an attorney - motorcycle accident - severe brain trauma. Just a matter of time I guess . . .

    You said - " The viaticals, though, may be a push. "

    Why?

    Thanks,

    Tom
     
  4. bill3173
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    bill3173 Guru

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    $360K seems like an outrageous amount to get for a $500K term policy, the conversion to a UL is going to really jack the premium up if the man survives. I think that is great for the gentleman and his family.

    I am currently working on a case for a client, that is customer driven. He is a current life and health client in his 60's with a stage 3 cancer and a term policy with 8 years left on it, and he is hoping to get an offer at 1/3 of the face amount of the policy.

    I am with you on your answer to the above, though, we took it to the carrier and they basically told us to **** and fall back in it, they would take their chances.

    BTW, this is part of the job that I don't care for, just doing it on request. I don't plan to keep any of the settlement, even if he gets a good one. I do think there is money to be made in that end of the biz for people that have the stomach for it and can really help the client as well. This case has been so personally distressing for me and depressing that hopefully, I won't be doing it again anytime soon.
     
    bill3173, Sep 12, 2008
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  5. jimsthename
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    jimsthename Expert

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    Most funders (those actually buying the viatical) don't like to buy policies of terminally ill patients. The bulk of the market is in senior life insurance settlements, which are typically ages 65 and older with life expectancies at 5 to 10 years. The term viatical generally has 2 meanings. One to describe the general industry of life settlements and also to specifically describe life settlements on individuals with under a 2 year life expectancy. The latter is most common today.

    This can be a great business side line, but best if you have strong clientele to market to. Many agents think they can get into this biz full time and waste much time and money.

    To get more information just google the search term ... life insurance settlements
     
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