Need Direction on a Client

[JFBAgent]

I have talked with a few life settlement companies before but I am not very up to date in this market. I would appreciate direction from the pro's in this arena on my client:

Male age 70 with great health. He has $250,000 West Coast Term and $250,000 Protective term both convertible for another five years, both approved at Preferred Non-Tobacco.

Would there be any settlement company or investors interested in this case?

 

[Josh]

The great health part is killing you, especially because he's young and it's a relatively small face amount for this type of a deal. If he starts having serious health issues you can probably get someone to take it even though it's only at around half a million (could probably go up to a million on the conversion).

 

[Franz Kafka]

The great health part is killing you, especially because he's young and it's a relatively small face amount for this type of a deal. If he starts having serious health issues you can probably get someone to take it even though it's only at around half a million (could probably go up to a million on the conversion).

The insured probably boasted about his "great health", too.

 

[dgoldenz]

Nobody will make him an offer if he's in good health. The client needs to have one foot in the grave already to get an offer these days.

 

[lifesettlementadvisor]

I have talked with a few life settlement companies before but I am not very up to date in this market. I would appreciate direction from the pro's in this arena on my client:

Male age 70 with great health. He has $250,000 West Coast Term and $250,000 Protective term both convertible for another five years, both approved at Preferred Non-Tobacco.

Would there be any settlement company or investors interested in this case?

Sadly, most of the responses are incorrect; showing that the life settlement industry is not doing a good job at broadcasting current market wants and needs to the life agent industry.

Right now, "low face" (under 500K) policies are in extremely high demand and are getting the most bids from providers. It will depend on the LE, for the most part anything under 160 months will get great bids -- 180 months or less will get some sort of bid.

 

[dgoldenz]

The LE estimates I've seen on the cases we've worked over the past year or so have been ridiculous. No way this guy has an LE less than 180 months if he's in "great health". Last case I worked the guy is taking 10 meds, had a quadruple bypass 3 years ago, and a number of other issues and they said his LE was 18 years at 70 years old. Another case the woman was 70 years old, severely overweight, diabetic, sleep apnea, etc, and they said her LE was 15 years. Both of these people were unable to get new policies and the LS companies wouldn't even make an offer. Both were under 5% premium to death benefit ratio.

Seems to me unless you're converting a preferred rate term policy to guaranteed UL and the person has LE of 8 years or less, you're not getting an offer. Just my experience...

 

[lifesettlementadvisor]

The LE estimates I've seen on the cases we've worked over the past year or so have been ridiculous. No way this guy has an LE less than 180 months if he's in "great health". Last case I worked the guy is taking 10 meds, had a quadruple bypass 3 years ago, and a number of other issues and they said his LE was 18 years at 70 years old. Another case the woman was 70 years old, severely overweight, diabetic, sleep apnea, etc, and they said her LE was 15 years. Both of these people were unable to get new policies and the LS companies wouldn't even make an offer. Both were under 5% premium to death benefit ratio.

Seems to me unless you're converting a preferred rate term policy to guaranteed UL and the person has LE of 8 years or less, you're not getting an offer. Just my experience...

Sadly you've had a bad experience -- very large amounts of paper is trading right now - you might need to think about working with another life settlement broker.

 

[dgoldenz]

Sadly you've had a bad experience -- very large amounts of paper is trading right now - you might need to think about working with another life settlement broker.

We shopped both of them around to quite a few places and had the same answer from everyone. One of them basically ruined our relationship with the client because they paid several thousand dollars to keep the policy in force while shopping it knowing how poor their health was and still didn't get an offer.

 

[Sales71]

how old you have to be to get an offer?

 

[coverman]

I have talked with a few life settlement companies before but I am not very up to date in this market. I would appreciate direction from the pro's in this arena on my client:

Male age 70 with great health. He has $250,000 West Coast Term and $250,000 Protective term both convertible for another five years, both approved at Preferred Non-Tobacco.

Would there be any settlement company or investors interested in this case?

If you're looking for a good company that specializes in Life Settlements look up Voyager Financial Group.