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CharlesEdwards Releases The Seven Greatest Myths Surrounding Life Settlements
08-03-2011 12:59 am

MYTH #1

 

If I use multiple life settlement brokers, I will increase the odds of getting the best offer for my client's policy.

FACT

 

When multiple life settlement brokers are used, vital factors such as credibility, efficiency, turnaround time, and price can decrease.  Multiple brokers representing the same life settlement case give Providers the uneasy feeling that neither broker really has direct control over the client and case.  This is the wrong signal to send to a Provider, especially when you want a case to be presented in its most advantageous light to command the highest price in the least amount of time.  Providers are incurring costs to underwrite a case.  As a result, their priority is to focus on the case submissions where they know that, if they make a reasonable offer, the life settlement broker will absolutely know the status of the case (with all Providers in the market) and can properly advise the client on the offer.

 

SOLUTION

 

The solution is simple. Do your homework and select just one professional life settlement broker.

The life settlement broker you select should truly understand the meaning behind maintaining a "fiduciary duty" to the client.  This implies doing everything reasonably possible to obtain the best available market price for the client's policy and always acting in the best interest of the client.  A professional life settlement broker that charges reasonable commissions, operates with full disclosure, and regularly submits their clients' policies to allqualified institutional investors would be a good choice as your client's single life settlement broker.

I'm still shocked when I hear stories of other so-called "life settlement brokers" who just send their clients' policies to their 2 or 3 favorite Providers.  Equally as bad is when I hear of an advisor or agent that submits their client's policy to only one Provider.  Not wanting to do the additional work involved, they attempt to justify their actions by saying that everyone pretty much prices the same so why make the extra effort.

   

The truth is that everyone does not price the same.  There are many domestic and international funds in the secondary market.  Some work exclusively with one Provider whereas others work with multiple Providers; each with specific terms and margins dictating the pricing of your client's policy.  As an example, we've seen offers on a case range from $30,000 to $210,000.  Just imagine the disservice to our client if we had decided to only shop the policy to the Provider offering $30,000 along with a few other Providers who chose not to submit offers.

About CharlesEdwards

   

CharlesEdwards, the trusted name in life settlements^®, has successfully operated in the life insurance secondary market since 2005.  As a national life settlement broker with access to 43 domestic and international institutional buyers as well as many reputable boutique investors, we represent policy owners in obtaining the best available market value for the sale of their unwanted or unaffordable life insurance policies.  Our clients' policies are submitted to all qualified institutional investors (our average is 28 submissions per case) who have expressed an interest in evaluating the client's policy.  In those situations where the traditional secondary market does not serve our client's best interest, we will present and negotiate the terms of a sale with non-institutional smaller investor groups.  We specialize exclusively in life settlements and do not market or sell any other financial products. 

For more information about CharlesEdwards, call toll free 800.492.5186 or visit us at www.charlesmedwards.com.

The trusted name in life settlements is a registered trademark of Charles M. Edwards Company, Inc.

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