LISA Asserts that Carriers are Disrupting the Secondary Market
Life insurance and life insurance buyer industries have a history of butting heads. Most recently, LISA (Life Insurance Settlement Association) has asserted that Lincoln Financial Group and Sun Life Assurance Co. are partaking in illegal conduct to deter seniors from selling their policies to the tertiary market.
LISA maintains that the two insurance carriers are pushing life insurance purchasers to reveal purchase prices, citing regulations IRC 6050Y that has yet to take effect.
In order to encourage policy sellers to avoid third-party buyers, Lincoln Financial Group offered cash benefits to 5,000 policy owners to retire their policies. According to LISA, Sun Life Assurance Co. has taken an aggressive stance on competing with buyers after a change of ownership, verification, or beneficiary changes were requested. Sun Life has actively participated in bidding wars with buyers, raising prices to price-out their competition, as reported by the Life Settlements Report.
Other life insurance carriers (John Hancock Life Insurance Co and Protective Life Insurance Co.) have taken an aggressive approach to discourage the sale of policies to a third-party by requiring purchasers to report sale prices ahead of the finalization IRC 6050Y.
Jack Kelly, an executive member of ILMA, stated: “We’ve advised our members that such requests for information are premature and unwarranted until the final rule has been promulgated.”
Encouraging Policy Purchases
According to a study conducted by the Insurance Studies Institute, 90% of seniors would have chosen the option to sell their life insurance policy if they knew about it. In contrast to insurance companies, Abacus Life encourages seniors to utilize the option to sell in order to get the most out of their personal property. Our goal is to help people understand their options. About $112 billion is forfeited back to life insurance companies every year. We believe that money belongs to the hard-working individuals who paid for it year after year, not in the pockets of the insurance company.
By using Abacus to sell an insurance policy, seniors and the critically ill can use their money to pay for medical bills, retirement, or to dissolve expensive premiums. Abacus is one of the largest buyers in the industry and is committed to empowering policy sellers to get the most of their unwanted policy and taking the power back from insurance companies and putting back in the hands of the consumer.
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Orlando, FL 32835
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Fax: (407) 455-7765