[Part 3] How to overcome 20 Life Settlement Hurdles: The Insurance Company

In part 3 of the series, we describe how life insurance companies (carriers) may contribute to the difficulties in getting a timely Life Settlement.

Issue #18: Most carriers delay creating life insurance premium illustrations.

Life Settlements could be 30% faster if carriers would just do their jobs promptly.To issue binding Life Settlement quotes, Life Settlement Providers must know the level annual cost of premiums to age 100. Carriers know that such an illustration is an essential part of a Life Settlement transaction. An illustration can be done in 20 minutes, but carriers usually take three or more weeks. Life Settlement Brokers secure these illustrations with cooperative carriers. When carriers are obstructive, Policy Owners must get involved.

Issue #19: Some carriers insist on working only with the Policy Owner

Illustrations: This Unknown Roadblock Slows Down 90% of Life Settlements

The primary delay in getting Life Settlement quotes is obtaining an illustration for the cost of premiums from the carrier (life insurance company). This particular hurdle can stop a sale in its tracks if you have a Convertible Term or Universal Life insurance policy.

Question 1: What are “illustrations”, and why is this a required step?

Life Settlement Providers (Funders, Buyers) must know each policy’s minimum annual cost of level premiums to the Insured’s age of 100.  An “illustration”, along with the Insured’s lifespan estimates, help Providers decide which policies to buy and which to decline. Illustrations are created by the policy owner’s life insurance company (“Insurance Carrier”).