A friend is recruiting me to sell the investment side of life settlemnents through a company called Life Partners. It is all new to me but returns (on brochures) look good. I have checked the net a bit and it desn't look like this may always be the best option for seniors who currently own the policy, but I would be working the investment end.
It looks like the type of product that may create some decisive comments. As I am pretty green I would appreciate any comments about these products or the company Life Partners, Inc.
Thanks in advance
I am currently captured with health company and trying to find my way my way....
They are so picky on who they will take. They want you to live at least 2 years, but know you will die within 5 years and prove it. They want the big policies and only certain kinds with certain companies.
I don't know of anyone right now making any money from them.
And don't be surprised if somebody, somewhere sues yo for selling and unregistered security. (Remember that they don't have to be right for it to cost you a ton of cash.)
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There are only two reasons to be in business: Fun and profit.
And if there's no profit, it ain't much fun!
Well I am off to a presentation today....and I did post before my search--sorry. I did find some infrmation in this forum. Still any comments on the viability of this market or if this is a profitable channel to pursue would be appreciated (thanks Mark).
Any positive or negative, regarding Life Partners?
Back up - based on your first post, you were talking about selling INVESTMENTS in life settlements, Mark is talking about selling LIFE SETTLEMENT TRANSACTIONS. There is a difference.
This is why I asked you specifically about how long you plan to remain in business. Your Life Partners buddy will get an override on business you develop. As Ron said, that particular type of suit is only one risk you will run, there are lots and lots more.
Presenation OK today, I didn't get all questions answered but should be finding out more when they have an agents meeting...
Not to worry yet, I am not signed sealed and delivered and I still have to answer lots of questions. Life Partners sells fractionalized interest in Life Settlements. As I see it, the catch is the quality of the underwrite on LE--not to mention compliance.
As far as I have heard a securities license is not currently required, but that may be changing.
I intend to drill more into the underwriting criteria and what assurances there may be, as well as history of complaints or lawsuits....not sure how someone getting an overide exposes me to a suit??? but curious if it does
Anybody on this forum with direct experience selling these or working with Life Partners are there like companies to compare to?
Thx again, Ozmo
Some people are just not capable of learning. Check the SEC's website about all the suits they have recently filed against companies "That did not realize they were suppose to be registered or licensed."
I know of one agent here in Arkansas that approached me about three years ago for something similar. I told him that I was not interested, and that he should check with his respective regulators in our state. This is the same advice I will offer to you.
To make a long story short. Here was a guy who had been in the business 27 years with a nice renewal block of business, who is now spending time in prison as a direct result of his involvement with this company. Remember ignorance or stupidity is not an excuse.
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To make a long story short. Here was a guy who had been in the business 27 years with a nice renewal block of business, who is now spending time in prison as a direct result of his involvement with this company. Remember ignorance or stupidity is not an excuse.
A lot of people wouldn't be in this situation if they would just give the money back when asked. I don't know your friend's situation, but I've seen people that could have stopped what they were doing and been okay, but avarice and arrogance took over.
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No Government can be long secure without a formidable Opposition.
To make a long story short. Here was a guy who had been in the business 27 years with a nice renewal block of business, who is now spending time in prison as a direct result of his involvement with this company. Remember ignorance or stupidity is not an excuse.
Exec - since I "heard" this from you, it piqued my interest. What law did the guy violate? Who prosecuted? Who filed the complaint?
IIRC, you do not have to be licensed to sell securities in AR in order to sell Life Settlements.
Exec - since I "heard" this from you, it piqued my interest. What law did the guy violate? Who prosecuted? Who filed the complaint?
IIRC, you do not have to be licensed to sell securities in AR in order to sell Life Settlements.
Every state has different variances of this law; and enforce it to a certain degree. This is my disclaimer...........
The guy was charged with selling an unlicensed security; and not doing his due diligence to verify that what he was doing was legal. Remember ignorance is not an excuse.
By the time they, the company, got around to registering with the SEC and the Arkansas Securities Department they did not qualify for registration; and were denied exemption.
The AG of the state filed charges and prosecuted.
A client filed a complaint after they did not receive their money back.
Every situation is different with every state. I am in NO way an authority on the subject; so please check with your local Insurance department or securities department.
Every situation is different with every state. I am in NO way an authority on the subject; so please check with your local Insurance department or securities department.
You are undoubtedly correct. It appears that the individual states can certainly bring actions, even though the SEC has apparently lost that argument already.
(Cite as: 87 F.3d 536, 318 U.S.App.D.C. 302)
United States Court of Appeals,
District of Columbia Circuit.
SECURITIES AND EXCHANGE COMMISSION, Appellee,
V.
LIFE PARTNERS, INCORPORATED and Brian D. Pardo, Appellants.
Nos. 95-5364, 96-5018 and 96-5090.
Argued April 4, 1996.
Decided July 5, 1996.
You are undoubtedly correct. It appears that the individual states can certainly bring actions, even though the SEC has apparently lost that argument already.
(Cite as: 87 F.3d 536, 318 U.S.App.D.C. 302)
United States Court of Appeals,
District of Columbia Circuit.
SECURITIES AND EXCHANGE COMMISSION, Appellee,
V.
LIFE PARTNERS, INCORPORATED and Brian D. Pardo, Appellants.
Nos. 95-5364, 96-5018 and 96-5090.
Argued April 4, 1996.
Decided July 5, 1996.
And yet, do you think that the person receiving the override is in jail, too?
Nope.
As I've asked twice before - how long does this guy plan to be in business?
If Ozmo checked his state laws and rules and found out he needed either insur and/or securities license to sell these products and he had it.
He would check to see if the products can be sold in the state.
These products I think also require qualfied or accredited investors of a minimum net worth.
I assume they also have disclosures the client would sign that the money is not liquid etc. Checked out the vendor and track record to insure they have delivered in the past.
What additional risks would there be? I am not trying to be flippant just curious.
I met a producer ayear ago who encouraged a well known IMO/FMO to sell these products and they are doing it. I am not with the FMO/IMO but I am curious.
I am not selling these products but I am suprised that this IMO/FMO is when you guys are so down on these investor side of life settlements.
It sounds like this FMO/IMO has not done their due diligence.
Coming from all sides, obviously more due diligence is in order. And the consensus seems to be to stay away or be very careful. "Exec" was friend associated with Life Partners? or someone else. Still curious if anybody is making any money with these products or this company, but no one coming out of this wood pile? That may say a lot.
FYI Mr. Bill, my intention is not to be in this for the short term, but as I have only been licensed a short time I will still need to build successful income streams to remain. So I hope to be in business for long term, but as yet I can't say for sure. Your comments appear a bit cryptic and a tad condescending, for whatever reason that may just be your style. Thanks anyway for keeping this thread rolling.
Coming from all sides, obviously more due diligence is in order. And the consensus seems to be to stay away or be very careful. "Exec" was friend associated with Life Partners? or someone else. Still curious if anybody is making any money with these products or this company, but no one coming out of this wood pile? That may say a lot.
FYI Mr. Bill, my intention is not to be in this for the short term, but as I have only been licensed a short time I will still need to build successful income streams to remain. So I hope to be in business for long term, but as yet I can't say for sure. Your comments appear a bit cryptic and a tad condescending, for whatever reason that may just be your style. Thanks anyway for keeping this thread rolling.
Should I Sell Life Settlements....
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