Life Settlement Pricing

Although both a broker and a funding source representative will help you with the sale of your policy, there are important differences between them. A funding source representative will only check with the funding source that he or she works with to get you their offer. Our brokers will check with every potential funding source in the Life Settlement market and negotiate the best offer for you.

Life Settlement funding institutions have different pricing models, which vary greatly on their individual strengths and weaknesses. For instance,

·        Pricing models at one funding institution may indicate strength in term policies, but a weakness in survivorship.

·        Others many have a strength for longer life expectancies, but less competitive on shorter life expectancies.

·        Some funding institutions are more aggressive in pursuing whole life policies.

·        Still others are controlled by restrictions in the policy coverage – not to exceed $5,000,000 or not to fall below $500,000

·        Etc…

All funding institutions must consider the following variables in a Life Settlement case:

·        Insured’s Age

·        Future Policy Premiums

·        Estimated life expectancy of the insured

·        Type of policy

·        Insurance company rating

·        Face value of the policy

·        Loan against the policy

The amount of consideration given to each factor by the various funding institutions generally causes a specific pricing model to prevail. This becomes even more important when you have a difficult case that may not get an offer from most pricing models.

By choosing to work with a broker to negotiate offers on your behalf, you have only one point of contact to follow up with regarding your application status. Also, your physicians and insurance company will only be contact by one firm. Only 1 application is required to receive multiple offers. Up to 20 funding sources will bid on your policy to ensure that you have found the highest offer.

For more information visit:  Life Settlement, Settlement Process, Pricing, FAQ