This is an important question because it can affect how much money you will receive for your policy. Brokers will take part of the offer, while providers do not.
The Top 10 Questions You Should Ask Any Life Settlement Company
How many places are you sending my clients financial, medical and personal information?
If a life settlement company says they are sending your client’s data to 20 or more companies, this should be a huge red flag. Protect your client’s data.
How much due diligence have you done on the companies you are sending your client's data to? Are they institutional or private investors?
Background, KYC, and DD checks should be done on anyone receiving your client’s sensitive data.
Can you provide an institutional buyer guarantee that will stay with the policy if it’s ever resold?
Only institutional funds with a minimum of hundreds of policies should ever own your client’s policy.
How do you get paid and how is that calculated?
Brokers are paid out of the client offer, and providers are paid by the fund or in management fees.
If I send my case to you, can I still send it to other life settlement companies?
Some companies may require a lock-up or exclusive. This should be a red flag. They may want to control your case and the offer amount.
What was your average payout to sellers in 2023? How does that rank when compared to your competitors?
This number should be 20% or more. Abacus is a leading payout provider by averaging over 20% for the last 5 years.
Do you have life settlement specific E&O?
Life Settlement E&O is needed to protect you and your clients.
Are you A+ rated with the BBB?
Only A+ BBB rated companies required to answer to the BBB. Protect your clients.
Do you charge for any hard costs like underwriting or life expectancies?
Some life settlement companies charge thousands for their costs whether the policy is sold or not.
Can you prefund my client so we don’t need to wait for ownership changes?
Some providers can do this, but very few can greatly shorten the process for the seller by funding early.
Can you use DocuSign for contracting?
Using DocuSign for contracts can greatly reduce signatures and contracting difficulties for you and your clients. This alleviates stress and confusion when going through the process of selling your policy.
