Settlement providers are looking to purchase life settlement cases that will give them the largest return on their investment. Like any other investor they want to pay the least and get the most. This means that they are looking for life settlement cases that have lower premium to death benefit ratios, lower LE’s and lower cash surrender values (csv). From the providers point of view this means they will have lower investment costs through the insured’s life expectancy thus giving them a higher return on their investment then the same policy that has a higher premium ratio, LE and csv. This is why Whole Life (tends to have higher csv) and Variable UL (has higher internal charges which in turn mean higher ongoing premiums) are not the providers preferred policy types. It’s also why providers have a strict prescreening process and only bid on life settlement cases that meet or exceed their pricing criteria.
To learn more about the type of life settlements that providers are looking for click on the LIVEpdq link now.