Orlando, FL, Jan. 17, 2017 – Growing interest by aging baby boomers and other seniors is helping to drive momentum in the life settlement marketplace. But according to Asset Life Settlements LLC, a life settlement brokerage and secondary market advisory firm, many seniors and financial advisors seeking to sell their clients’ policies in the marketplace are expressing confusion over the functional roles of brokers and providers.
“Many advisors tell us they are often approached by providers seeking to purchase their clients’ policies, but they are confused about whether by-passing the life settlement broker in a ‘provider direct’ transaction is in the best interest of their clients,” said Scott Thomas, co-founder of Asset Life Settlements. “The short answer is no,” he said.
According to Thomas’ article recently published by LifeHealthPro, circumventing the broker means providers are better able to control each policy’s purchasing price and eliminate competition from other providers who might be willing to pay a higher amount for the policy. The entire article can be viewed at:
Company co-founder Jeff Hallman cautioned advisors and policy sellers to do their research and weigh the consequences of going provider direct. “Life settlement brokers have a duty to the policy seller to negotiate with ‘multiple’ providers for competing offers to obtain the highest possible value for the policy,” said Hallman. “On the other hand, providers have a duty to their institutional investors to purchase policies at as great a discount as possible, whereas a broker does not. So it’s difficult to see how that helps policy sellers who want to get the most out of their insurance asset.” Hallman recently authored an article for California Broker Magazine regarding a life settlement transaction valued at $11.6 million. The client’s estate planning attorney had asked Hallman to broker the transaction and the complexities of the case underscore the importance of using an experienced broker.
Hallman and Thomas added that the broker’s mere involvement in each transaction signifies a competitive rivalry for the purchase of the policy which often motivates providers to strike a more favorable ratio between the policy’s purchase price and the provider’s margin. They indicated that the policy seller obviously benefits when providers can offer as high a price as possible with margins as low as possible.
About Asset Life Settlements, LLC
Asset Life Settlements is located in Orlando, FL and has a proven track record in the life settlement industry. Co-founders Jeff Hallman and Scott Thomas have more than 30 years combined experience as life settlement brokers and have transacted over $4 billion in policy face value. As an active member of the Life Insurance Settlement Association, the company is dedicated to obtaining the “fair market value” for unwanted life insurance policies. Authorized to do business in 44 states, Asset Life Settlements is compliance driven and strongly committed to industry best practices and earning the trust of advisors and their clients. Visit www.assetlifesettlements.com .
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