Thursday, November 12, 2009

The Life Insurance Settlement Industry New Technology for Licensed Agents to Go Direct

life insurance

Financial advisors and life insurance agents are becoming more familiar with life insurance settlements, and settlement brokers are working relentlessly in soliciting these advisors through various forms of marketing. They often pitch the concept of a hand's free and cost free appraisal for your settlement business. Although this sounds convenient nothing is for free, so what does it really cost?

Commissions in the life settlement market have been absurdly high. Brokers can get away with charging 8% of the face amount of the policy. So, if the purchase price of the contract was for 25% of the face amount of the policy, the broker's commission could very well be 32% of the purchase price.

With so many life settlement brokers fighting for your business, what determines who you are working with? Some common statements we hear from professionals using a life insurance settlement broker are:

My broker says, "They shop the entire life settlement marketplace." This is not a difficult task. In fact, an average case typically has less than 15 Providers that could even consider it.

My broker says, "They have unique funding relationships that others don't have access to. " Life insurance settlements are becoming more regulated. Off the beat funders, hedge funds or other small funds that are not licensed or using licensed providers should be avoided. This is a myth and a very common pitch used by brokers. If you are life insurance licensed, most state regulations will allow you to handle your own life settlement transactions and will gladly give you the list of the licensed life settlement providers in your state.

My broker says, "They say they have special relationships based on the volume of business." They may be on a first name bases with each of the life settlement providers out there, but do you really think an investor will over pay for something because they know your name? Absolutely Not. Just like in any free market, competition and quality of the product will determine its price.

My broker says, "They say they know how to manage underwriting to maximize your case value." Most life insurance agents know exactly how to order APS's and in-force illustrations, the only extra step in a life settlement transaction is obtaining a couple life expectancy certificates. This is a task that anyone can perform.

My broker says, "They say they fully disclose and will rebate me on the commissions" Commissions are determined by the broker themselves and are only limited to the Life Settlement Provider's max compensation schedule or state regulation if applicable. So how is it possible to rebate on commissions that are " be determined"?
Take ownership and control of your life settlement business.

In today's life insurance settlement market bypassing a broker to work directly with providers is an available and viable option. Life settlement funders and providers prefer to work with knowledgeable agents and financial professionals who are working directly with policy owners. This display of control and direct access to the decision maker without multiple layers promotes transaction efficiency and can ultimately help speed up the bidding process.

A new service offered by was designed for licensed professionals to engage directly in the life settlement marketplace without having to research the entire market. This is a non-brokerage based file transfer service, designed like a case search engine to find the most qualified purchasers for your life settlement business. It's a simple and effective way to instantly access the life settlement marketplace. Features such as tracking and reporting will help you navigate through a life settlement transaction with confidence.

Here are some of the benefits when using Life Policy Trader.

• 256k bit Encrypted Security on Each Case Submission
• Access to 35+ Qualified Life Settlement Providers
• Easy to use step by step submission process
• View report of who downloaded your case for evaluation
• Generate a client report
• No additional fee's for closed business
• Case Submissions are Branded for Your Company not ours
• Partner network for underwriting assistance
• Live Support from a life settlement specialists