Success Story Illustrates that Choosing an Experienced Life Settlement Broker Does Matter
August 11, 2015
Most producers would likely agree with the wisdom of using the services of a life settlement broker to sell a policy in the secondary market.
Equally important is choosing an experienced life settlements broker known for its “competitive tenacity” in working each case to achieve the highest possible value for the seller’s policy.
In a recent case example, Asset Life Settlements demonstrated its skill and competitive negotiating abilities involving a life settlement transaction that could have resulted in the policy seller leaving approximately $60,000 on the table.
Case Summary Highlights
The case involved a $2 million life insurance policy for a 74-year-old senior who no longer needed the coverage. During our handling of this transaction characterized by rigorous negotiations with multiple funding sources, Asset Life Settlements discovered several red flags pre-dating our involvement which we set out to redirect in favor of the policy seller:
- The case had been submitted previously through another life settlement broker, but to only one funding source (versus multiple funding sources).
- By digging into the case, Asset Life Settlements learned that offers coming in from our multiple funding sources were actually based on backdated policy illustrations which would have required the client to pay a large premium to convert the policy from term to universal life.
- We requested new updated policy illustrations which omitted the need for the large premium payment. Subsequently, the bids we received from our funders were actually higher than the one bid received by the other life settlement broker initially involved in the case.
- Due to Asset Life Settlements’ tenacity and expertise, a bidding war over the policy ensued involving two brokers and four institutional funders. It is during such bidding war activity where the “rubber meets the road” and the true benefit of using an experienced broker is revealed.
- In the end, Asset Life Settlements prevailed in winning the highest bid resulting in a net offer to the client of $410,000, plus a $28,663 conversion premium reimbursement to the policy owner after the rescission period.
Making a decision to sell a life insurance policy typically comes after much thought and research. Top of mind for producers and their clients is having “peace of mind” that the life settlement broker they have chosen will be as tenacious as possible in negotiating the “fair market value” for their policy.
We believe that sharing the above case summary helps us illustrate what we stand for and also provides an appropriate forum to remind producers and their clients of our corporate mission statement:
“At Asset Life Settlements, we are committed to leveraging our brokerage experience to assist agents in obtaining the fair market value for each client’s life insurance asset. We believe in earning the trust of agents, adhering to industry best practices regarding transparency, and delivering results.”