At The Lifeline Program, we know that the prospect of applying for a life settlement can seem daunting to many--even to seasoned producers and financial advisors. Given the procedure and paperwork, along with the rules and regulations of each state, they can be a challenge to navigate.
However, we use our nearly quarter-century of experience and knowledge of transacting life settlements to make the process as effortless and expedient as possible for both you and your clients.
There are a number of steps in the settlement process that we would like to make you aware of; these will help us determine the value you may have inside each policy. The life settlement application timeframe can fluctuate based on the amount of time it takes us to receive particular documents, such as attending physician statements.
Finding the Right Candidates for a Life Settlement
The first and most important issue is determining whether a life settlement is right for your client, and how it matches up to his or her circumstances. For those seniors who have been adversely affected by the economy over the past several years, a life settlement may enable them to pay their daily expenses. It may even make the difference between some clients being able to keep their homes or losing them. For other clients, a life settlement may allow them to live out their golden years as they dreamed. For your higher net worth clients who may be over-insured, it gives them and you the opportunity to use the funds for other investments more suited to their financial goals.
Something important you'll want to consider is that many, if not most, of your senior clients may become part of the 85 percent who let their insurance policies lapse, according to Milliman, an independent research firm. Reasons can range from having children who are now self-sufficient, a spouse that has passed, illness, or having assets with a depreciated value. Seniors tend to simply stop paying premiums, attaining nothing from all the premium payment money they have invested in their policy. Or they take a surrender payment from the insurance company, which is characteristically far less money, if any, than a life settlement might pay.
The Five-Step Process
We would like to make you aware of the steps that will help us to quickly determine the value of each policy. Here are the life settlement stages, along with an explanation of how the process works. However, the timeframe can fluctuate, based on receipt of necessary documentation.