During the previous steps we arrive at a life settlement value that is accurate. Then a life settlement agent educates you about the importance of taking into account your financial concerns and priorities before deciding to sell or keep a life settlement policy.
During the analysis step, we look at the numerical significance of selling a life settlement policy NOW, LATER, or NEVER.
The NOW/LATER/NEVER Analysis helps answer these important questions about a life settlement insurance transaction:
Understanding the basic structure of a life insurance policy is important to understanding how a life settlement might best work now or in the future. Because most of the policies purchased for a life settlement are either universal life or term that is convertible to universal life, we will focus primarily on how the design of universal life affects a life settlement policy purchase.
Life insurance polices are made up of three elements:
Each element has two components:
Of all the elements and components of life insurance, the most important the most important to the life settlement market is the projected (non-guaranteed) COI. This is because it usually represents most of the anticipated cost of keeping a life settlement policy in force from one year until the next. To a life settlement policy buyer the projected COI represents the total cost of keeping a life settlement policy in force until the average life expectancy of a large set of lives with life expectancies similar to that of the insured.
Since the COI is the most important element when it comes to pricing a life settlement policy, we provide an exclusive COImgr pricing analysis to help consumers understand how investors decide what a life settlement policy is worth. Although the analysis takes into account all of the elements of each individual life settlement policy, it places special emphasis on the projected COI. In order to create the analysis we review each specific life settlement policy and an illustration we help the owner of the policy obtain from their life insurance company.
At the conclusion of the analysis, we present the owner with a personalized Now/Later/Never report that helps them compare the financial implications of selling a life settlement policy now, later, or never.
If the owner decides to execute a life settlement now, our life settlement company moves on to the documentation step and utilizes the contents of the NOW/LATER/NEVER report to help negotiate the highest possible life settlement policy offer from prospective buyers. We also use the report to help the seller understand the offers they receive and how they were arrived at.
If the owner decides not to execute a life settlement now, we can provide additional services to maximize the life settlement policy value later or help them reduce the outlay required to maintain the death benefit for their beneficiaries.