Anyone in the life-settlement biz?

[Guest]

In Broker World magazine I saw an adv. for:
http://www.maplelifefinancial.com

Anyone here do life settlements (viaticals?). I never hear these mentioned on the board.

Do all policies these days come with an automatic accelerated payment on a terminal illness? Even if so, I'll bet there are people who want to dump their policy and get some cash for it (perhaps to screw their kids :-))



Al

 

[DerekW.]

I noticed you have a few posts regarding life settlements. I'm new to the forum and this is my area or expertise. How active are you in the market? Let me know if there is anything I can do to help you out.

- Derek

 

[lifesettlementadvisor]

In Broker World magazine I saw an adv. for:
MAPLE LIFE Financial, Inc.

Anyone here do life settlements (viaticals?). I never hear these mentioned on the board.

Do all policies these days come with an automatic accelerated payment on a terminal illness? Even if so, I'll bet there are people who want to dump their policy and get some cash for it (perhaps to screw their kids :-))



Al

Maple is one of the monsters in the industry. They are a provider (actual people who buy and hold) the policies. If you ever get a chance to hear Nate Evans (their CEO) or Alan Buerger (CEO Coventry) speak, I would highly recommend it.

There are plenty of clients who are taking advantage of this market. In 2007 the life settlement market did about 12billion in business.


FYI these people aren't screwing their kids and guido won't come hunting for them!

 

[HomeService]

Do research on these , al. Do the research.

 

[lifesettlementadvisor]

Do research on these , al. Do the research.

Homeservice;

its obvious you are not a fan of the industry, which is your choice, but can you at least express your opinion why you do not like life settlements?

 

[HomeService]

ummmm, no, but this linked site spells it out pretty good.... I will let this opinion spell it out for me... I could not have done all this research and written so eloquently about it, so let these folks say it all....

Truth about Life Settlements - Life Insurance Rescue

 

[retread]

In Broker World magazine I saw an adv. for:
MAPLE LIFE Financial, Inc.

Anyone here do life settlements (viaticals?). I never hear these mentioned on the board.

Do all policies these days come with an automatic accelerated payment on a terminal illness? Even if so, I'll bet there are people who want to dump their policy and get some cash for it (perhaps to screw their kids :-))
Al

Al, I don't do viaticals because I think they are a bad deal for the client. That's my personal opinion... here is the State of Kansas, Department of Insurance word on it:
http://www.ksinsurance.org/consumers/docs/consumerviatical.pdf

Just noticed that the original post to this thread is over a year old. Should have checked this first... the reply is recent and caught me off guard.

 

[lifesettlementadvisor]

yes you should base your opinion off of a very old article on quatloos.

your article uses a case study of a senior with a million dollar policy. in the article they state that he cannot afford to keep the policy, but condem him for selling it. quatloos states that the children are the biggest loser, but do not give any alternatives. in the article it is very clear, sell the policy for 500k or let it lapse. both cases, the kids get nothing, unless the senior invests the 500k or uses it to pay his bills and leaves his family debt free.

tell me this, the lapse ratio in the us is around 80%. in your opinion if a senior is going to let their policy lapse, would you rather them take the csv? seems like it would make more sense for them to sell it for 5 times the csv. life settlements should not be aggresively marketed, but should be a tool that you utilize when your client tells you the policy is going to lapse, or a term policy is coming up and they are not going to convert it to a ul.

 

[retread]

lifesettlementadvisor:

You are obviously replying to the post above mine... you did not quote the post you were referring to.

If a client is confronted with a terminal illness, IF he has an "accelerated benefits" rider, he should use that, and not a viatical settlement.

IF he does not have this provision in his policy, then your option may be of some relief.... however, I would never sell a policy that did not include an accelerated death benefit rider, especially these days where death can be prolonged until the victim is completely drained financially.

Even LTCi may not be of much help, because the length of an illness can exceed the policy benefits.

The caveat with accelerated benefits is that they are usually capped at 50% of the equity. My question to you, is: what if a client has used up his accelerated benefits?... is a viatical settlement still available?

I want to know what will benefit my clients... What can you say to persuade me that a viatical settlement will not hurt anyone?

 

[HomeService]

If somebody comes on here and starts touting some product that they sell, it's usually determined to be spam. So, I shall just wait around and see if this is determined to be spam. But, meantime, while we all wait, do the research. It's fun. It's educational, it helps with the reading skills.