With the variety of life settlement education resources available today, consumers don’t have to keep learning tough lessons the hard way. Unfortunately, I get far too many calls from policyowners after it’s too late to provide the right life settlement education information.
For example, policy owners sometimes call after they’ve signed closing documents to sell their policy and then discover the transaction is irreversible because they live in an unregulated state that does not require a reasonable rescission period. In one situation, a seller was forced to take less for his policy because it was too late for him to accept a much higher offer from another buyer.
Paying excessive commissions is another pitfall of having an inadequate life settlement education. Some states require commission disclosures and some do not. For states that do not, sellers should insist on getting it anyway and require their life settlement broker to sign off on it’s accuracy.
Not understanding what their policy is worth BEFORE selling it is the third hazard sellers can succumb to without the proper life settlement education. Would you sell your house without first having an idea of what it might be worth? Your life insurance is property too. Use our LIVEpdq tool to see what your policy might be worth.