Why Offer Life Settlements?

Under appropriate circumstances, life settlements are good for clients, good for your agency, and, yes, even good for the insurance industry as a whole. Many insurance agencies, however, do not offer life settlements because of a lack of information, pressure from insurers, fear of reducing commission streams, or concerns abotut client reaction and satisfaction. Let's examine some of the myths surrounding life settlements, and then discuss how working with Open Life Settlements can take your agency to the next level of professionalism and profitability.

Myth #1: We Don't Have to Discuss Life Settlements with Clients

Most attorneys and an increasing number of insurance experts believe that insurance agents have a legal and ethical duty to consider selling a life policy when appropriate. In fact, in a recent book published by The National Underwriter Company, the authors opined that the answer to the question "Do insurance agents have a duty to consider life settlements?" is "clearly 'Yes.'" Especially in cases where a client intends to surrender a policy or let it lapse, there is no way for an insurance agent to satisfy his professional obligations without considering whether the client could obtain greater value through a life settlement.

Myth #2: Life Settlements Are Difficult and Risky Transactions

A life settlement does involve a lot of work--but you don't have to do it. Completing a life settlement application is only slightly more difficult than taking a policy application. Once the application is complete, Open Life Settlements does the rest. You simply report the offers to your client.

Open Life Settlements works only with established life settlement providers that have a clear track record of delivering. Money is placed in escrow for the transaction and released within three days of the policy transfer. In addition, life settlement contracts have a recission period built in. Your client can cancel the deal for a short period even after receiving the money.

Myth #3: Clients Don't Want to Hear About Life Settlements

Which do you think is harder: Selling a financial product, or selling money? Most clients are delighted to find out about life settlements, even if they decide the transaction isn't right for them. People love options, and a life settlement is just another option for a policy.

Myth #4: Life Settlements Will Destroy the Life Insurance Industry

Did you know that in England, insurers have been legally obligated to inform consumers about life settlements, and even to provide referrals to life settlement providers when asked? Despite this, the life insurance industry has not been much affected. The reason is that only a modest fraction of life policies are ever eligible for a life settlement, and most of those will never be sold. Open Life Settlements strongly supports legislaton against "flipping" policies and selling policies purchased at the behest of investors ("STOLI"), but our cousins across the Atlantic have already shown that life settlements can benefit consumers without damaging the life insurance industry.

Myth #5: Life Settlements Aren't Worth Our Time

Due to the extreme difficulty of mass marketing life settlements, and the very high demand for life settlement contracts by investors, commissions are very generous in the life settlement industry. It is routine for a life settlement on a $1 million policy to pay a commission of $40,000. Replacement insurance, annuity purchases, and similar transactions with the proceeds of a life settlement can generate even more profit. You can profit by giving your clients a powerful new financial tool.

What Open Life Settlements Can Do For You

Teaming up with Open Life Settlements will allow you to outsource almost all of the work in the life settlement process while retaining the majority of the profits. Here are the key advantages to working with us:

Reliable Access to Numerous Life Settlement Providers

With Open Life Settlements, you get the benefits of a large brokerage—especially the ability to solicit offers from every provider in your state—but with the assurance that every application is personally negotiated by us for the highest possible bid.  This ensures that you and your client get top dollar for your settlement opportunity.

Training and Marketing Efforts

Open Life Settlements is happy to provide training seminars for our partner agencies, as well as marketing materials. In addition, you may benefit from our Web, radio, and print ad campaigns.

Analysis and Compliance Assistance

Open Life Settlements can perform "hold or fold" analysis on policies and settlement offers. We can also make it easier for you to get started in life settlements by helping you through any licensing process that may apply to your state. (In most states, life settlement licenses for individual brokers are obtained through a self-appointment process.)

Get Started Today

Don't wait for the competition to offer the life settlement services your clients want. Contact Open Life Settlements today to find out how we can help you, or call us at 866.877.4054.