Our documentation step anchors what we believe to be a superior new life settlement process designed around where the life settlement market will be tomorrow, instead of how the life settlement market was in the beginning and to some extent still is today.
Depending on which life settlement companies you talk to, the early days of the life settlement market might be described as either the good old days or the wild, wild, west. The following is what we remember.
Senior consumers were approached (usually by a life settlement agent) with the concept that an existing policy could be sold using a new life settlement for an amount that was on average over 3.5 times as much as they could get by surrendering it for its cash value. For healthy insured's, this proposal was sometimes accompanied by another proposal to use the new life settlement proceeds to buy a new replacement life insurance policy that was often less expensive than the life settlement policy, due to recent life insurance rate deductions within the senior age brackets.
To proceed, consumers were asked to sign authorizations allowing access to their private medical records which were in turn provided to third party services that would estimate their life expectancy. The results were combined with various policy illustrations and then shotgunned out for "bids" from prospective buyers within the life settlement market. The hope was to create an auction environment that would allow the life settlement market itself to arrive at a valuation for a new life settlement through competitive bidding. Once the bidding was complete, the policy owner was presented with the winning number and an assurance that this amount was the most available after scouring the life settlement market for the new life settlement.
Documentation usually consisted of a list of the other offers, thus "documenting" that the offer presented was, in deed, the highest available from the life settlement market. To the uninformed consumer I'm sure this made sense, especially since the winning bid was often seen as a windfall compared to the meager cash surrender value available from the insurance company. Who knows what the policy was really worth. Critics of the industry have even questioned whether or not the life settlement provider selected had the highest offer or just paid the highest commission?
During each new life settlement transaction these were some of the more important questions that often went unanswered:
Our process was designed to thoroughly educate consumers about the life settlement market, help them establish priorities, answer their questions, and provide full disclosure regarding compensation and other alternatives to a new life settlement before requesting access to private medical records or other information. If the seller agrees the preceding has been accomplished, we then access anything additional that is required to document the previously unconfirmed elements of the new life settlement transaction, including the extent of the insured's specific health conditions. The resulting information is used to obtain firm pricing for a new life settlement by obtaining firm bids for their policy and/or confirming eligibility for other alternative or complimentary financial solutions.
We help consumers: