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Help Your Clients Unlock Their Hidden Asset

Posted Sep 16, 2017

As you may know, the settlement industry has taken its front row seat in the insurance industry.  Currently, 43 states require insurance companies to inform the clients when they are going to drop or lapse a policy, that a settlement may be a good capital option for them.  My firm was established in 2008 and has set up a structure that none are equal to.  We do it right.

  1. We are completely transparent on every transaction illustrating the gross bids on each of the funds that come in.
  2. We only sell to institutional funds that will keep policies and not sell to individuals.
  3. We do a compliance check on everyone that goes in to the process, showing them how to keep the policy versus selling the policy and at the end we do a complete compliance file which includes all the illustrations, all the correspondence between us and we deliver a full copy to each client.

As you probably are aware, insurance companies have raised the cost of insurance inside many policies and the higher costs are eating away at the cash value which destroys the coverage that was set up to create security.

 

Many of the policies that are being dropped or cashed in were issued between 1995 and 2005.  This block of insurance is highly vulnerable to that price increase that can destroy your client’s life policy.  We have many success examples of people and corporations that received great results using the Settlement Masters process.  Let me give you an example:

  1. A corporation was in trouble in 2008 due to a massive cutback in revenue.  The owner’s estate shrunk to less than half of what it was before and his term insurance was about to expire.  The corporation intended to forfeit the policies.  We were called in by the company’s attorney asking us to review their insurance portfolio.  After looking at the policies, we decided it would be imperative to appraise them.  These were term policies with no value unless they were converted.  Before I left, I asked the owner what he needs to get out of this hole.  He replied “I need $500,000 to create an online catalog for my company.”  I said why not go to the bank and he said “they pulled my line of credit and they are not going to lend any more money till my financials get better.”  The next thing that happened is nothing less than a miracle.  We went in to the market and found over $1,200,000 for his two term policies.  I can’t tell you the joy I had when I called him and told him that he could start his catalog right away and that he had an extra $600,000 left over.  He said “I can’t believe you did this.  You have saved my company and my family’s estate.”

This is what the settlement market can do in isolated situations.  We have had many other stories that we can tell you but in the ten years that I have been in the settlement sector, I found an evolution of an industry that is becoming a prominent part of the financial services community.

 

Insurance is an asset class that people would not believe is in their portfolio.  My firm has the highest quality of client service and transparency.  Please call my team.  They are informed, educated, caring and will get the job done for you in a professional manner.  I look forward to your call.



Did you know?

If you are 65 or older or have experienced a change in your health condition, your life insurance policy might sell for more cash than you realize!