We’ve recently written about the efforts by a few life insurance companies to buy back policies from consumers using a method that circumvents existing regulations, many of which offer consumers basic protections. While these practices are essentially illegal, there is a simple straightforward solution available to life insurance companies who want to participate in the life settlement marketplace — engage with us directly and transparently. In other words, come on in, the water’s fine.
Life Insurance Providers Investing in Life Settlements
Life settlement providers are licensed experts in buying policies from consumers through a regulated process. There is no prohibition from the financing entity (i.e., the entity that puts up the money) being a life insurance company. In fact, life companies buying policies is neither new nor is it any different from any other financial institution investing in life settlements. Oh, and what they choose to do with the policies once they’ve acquired them correctly is up to them. There’s no requirement that carriers keep policies in force if that’s what they decide to do. Of course, they may be foregoing a number of investment benefits to owning a portfolio of life settlements, but as the ultimate buyer, they can do with their investments as they choose.
Life settlement companies aren’t hiding either. In fact, they are easy to find because the life settlement industry’s biggest challenge has always been “getting the word out.” That means there has always been an ongoing effort on the part of life settlement companies to inform consumers about the benefits of life settlements. Life insurance is an asset consumer policy owners can manage over time. If selling an unwanted or unneeded policy makes sense, there are well-regulated brokers to represent them, and well-regulated providers representing institutional-quality investors to buy them properly.
Engage Instead of Evade
So, to all the life insurance carriers out there who want to acquire policies, whether they are your own products or those of your competitors, and regardless of what you decide to do with your investments, contact life settlement companies and engage with them. Join with the industry in providing a service to consumers that demonstrates to everyone the value of having life insurance as an asset that can be used later in life to achieve all sorts of valuable objectives.
If you’re interested in learning more about how legitimate life settlement providers use life expectancy reports to determine the value of a life insurance policy, contact ISC Services today.
