Looking to Buy Your FE Plans - Prevent Chargebacks to Agent
- Thread starter rousemark
- Start date
- Thread starter
- #12
hfa8802
New Member
Hello everyone! First a big Thank You to RouseMark for starting this discussion for me. I have been a longtime member and viewer of this Forum but had never posted before. So a lot of good discussion I see regarding the viability and profitability of me purchasing policies. So a little background, I have been an Agent for the better part of 15yrs and for the past 8yrs have been heavily involved in the Life Settlement side of the industry.
We have the 2nd largest Life Settlement fund and have been operating at double digit returns for the last 9yrs so we have some experience in ensuring our investors are covered. Typically the minimum to consider a Life Settlement is 100k but I believe there is an opportunity in the 5k to 50k FE market, which is why this discussion.
I have read a lot of "Business" related comments regarding profitability, Insurance company etc.....the biggest question I have is this: is preventing Chargebacks to Agents enough benefit to have you introduce your client to this opportunity? Most people have no idea that the Supreme Court ruled that Life Insurance is personal property and as such can be sold just like any piece of personal property. Insurance Companies are very familiar with Life Settlements and there is nothing they can do to stop a policy holder from selling the policy nor is there any repercussion to the Agent.
We have the 2nd largest Life Settlement fund and have been operating at double digit returns for the last 9yrs so we have some experience in ensuring our investors are covered. Typically the minimum to consider a Life Settlement is 100k but I believe there is an opportunity in the 5k to 50k FE market, which is why this discussion.
I have read a lot of "Business" related comments regarding profitability, Insurance company etc.....the biggest question I have is this: is preventing Chargebacks to Agents enough benefit to have you introduce your client to this opportunity? Most people have no idea that the Supreme Court ruled that Life Insurance is personal property and as such can be sold just like any piece of personal property. Insurance Companies are very familiar with Life Settlements and there is nothing they can do to stop a policy holder from selling the policy nor is there any repercussion to the Agent.
Last edited:
- 7,012
Possibly.
Would all FE prospects qualify?
How fast does would it all be processed? Like if a prospect NSFs, can we get it done before it lapses?
Would all FE prospects qualify?
How fast does would it all be processed? Like if a prospect NSFs, can we get it done before it lapses?
hfa8802
New Member
If the insured is 65 or older than all FE would qualify. It they are under 65 we would have to review but if we purchase it and with the agents help we can usually close within 15 business days.
- 4,872
If you are serious then you should contact the carriers. Persistency is more important to them than the agents. You'd have access to many more policies much quicker than dealing with agents.
- 4,872
You're not making any distinction between males and females. You do know they have different life spans right?
- Thread starter
- #18
Yeah.. But the premium paid should be about the same as females pay lower premiums to compensate for their longer life span..
- 26,142
What if any E&O exposure is there for an agent?
- Thread starter
- #20
Since the agent is not receiving any direct compensation and is not making any recommendation, I would not think there is any..
Similar threads
