Posted by The Policy Settlement Alliance on Fri, Aug 13, 2010 @ 07:25 AM
By Scott J. Dressel
Today the life settlement industry is a regulated market where life settlement commissions are typically fully disclosed to the client. In the past the settlement industry suffered from abuse from some agents who charged excessive fees and took a large percentage of the upfront cash settlement paid by the funder. Since then the industry has been scrutinized and subject to rules and regulations based on sound ethical principal. Life settlement commissions are subject to a maximum percentage ceiling on what can be subtracted and paid to the broker and the settlement company (facilitators) from the upfront cash payment paid by the buyer also known as the funder. In previous blogs I have suggested that any consumer wanting to sell an unwanted life policy that they deal with a known broker who uses a reputable settlement company to maximize their selling price. Naturally the net proceed the seller receives is effected by the by the life settlement commissions paid to the facilitators. For a free quote to see what your policy may be worth visit our LIVEpdq link.
Note: Blog posts reflect the opinion of the author, which may differ from the opinion of policysettlement.com.
Posted by Alice Hood on Mon, Jun 28, 2010 @ 06:53 PM
By Stephen R. Bathon, CLU, ChFC, AEP
Life settlement commissions
are usual calculated as a percentage of the face amount of the policy and not as a percentage of the monies received from its sale. For this reason, the seller of the contract needs to be careful in picking the broker to handle the transaction. If the policy being sold has a large face amount, the life settlement commission can be in the hundreds of thousands of dollars.
The problem is that the seller often only looks at his alternative, which is to surrender the contract for its cash value. Many times the contract is being sold because the owner no longer has the money to maintain it and has been using his cash value to pay premiums for years. The lower than planned cash value increases the insurance company’s risk and they need to take more money from the policy to maintain it. This causes a downward spiral often resulting in the contracts running out of money and its cancellation.
When the seller looks at the alternative, a settlement, which results in a large sum of cash, he might not look any further into the transaction and the life settlement commissions.. There have been documented cases where the seller was more than happy to receive double or triple his cash value only to find out later that the contract was sold for ten times that amount.
Many states today require full disclosure on the part of the settlement broker and the purchaser of the contract. It is important that the seller be aware of the life-settlement-commissions and demand full transparency from the broker handling his sale.
Click the LivePDQ link to see if a life settlement is right for you.
Note: Blog posts reflect the opinion of the author, which may differ from the opinion of policysettlement.com.
Posted by Alice Hood on Fri, Jun 25, 2010 @ 04:25 PM
By: Amie M Wirth
Life settlement commissions
are something that people selling their policy tend not to understand. Many people do not understand the work and cost involved in selling a life settlement. Nor do they understand the value of a good life settlement broker so they do not understand why we need to be paid the amount that we get paid.
The life settlement commission is a payment for services rendered on a file. This payment is also for the contacts, knowledge and expertise the broker has in the life settlement industry.
Life settlement commission goes pay for the time and cost that a file requires. Although there are a few funders in the industry that will purchase medical records and life expectancies on files that they receive, most funders require the items to be submitted by the broker. Using only the funders that will purchase the medical records and life expectancies will not generally elicit the highest offer for the client.
Many times the cost of medical records and life expectancies cost the broker of $1,000 with no repayment if the sale is not complete. The life settlement commission also helps to reimburse the broker for all the cost that it takes to run all of the files that they work.
Knowing if you are eligible for a life settlement and if it right for you is something we review before processing a file, click on the Live PDQ button and see if it is the right solution to meet your needs.
Note: Blog posts reflect the opinion of the author, which may differ from the opinion of policysettlement.com.
Posted by Alice Hood on Fri, Jun 25, 2010 @ 04:24 PM
By Marlin E Leisher
Life settlement commissions
was historically out of control. From the beginning of the life settlement world, hence life settlement commissions the broker could keep up to half of the total offer to the client.
We all know that when a new industry emerges particularly one that is cash rich, unfortunately if I may be so bold the scum rises to the top to take advantage of those unaware of such a practice occurred, prior to law enforcement and industry enforcement. And in this case life settlement commissions ran a mock for years. Which in being a broker with ethics and concerns have at times been between a rock and hard place at the request of the agent as to the amount of life settlement commissions that he is asking me to provide. That in my heart is unethical however; the law at that time did not take the settlement industry serious therefore the life settlement commissions was at the hands of the settlement broker whom I worked for and too had follow his request regardless of our structure today. Which will only allow a portion of commissions that is governmentally and industry ethically accepted.
For more information please visit us at Livepdq in the upper right image.
Note: Blog posts reflect the opinion of the author, which may differ from the opinion of policysettlement.com.
Posted by Alice Hood on Fri, Jun 25, 2010 @ 02:52 PM
By Rick S Cantville
Life settlement commissions have been a matter open to speculation since the onset of the viatical and life settlement industry.
Due to the lack of regulation, life settlement funders, agents or brokers were not required to disclose to the client the amount of commission received . This often times led to clients receiving less of a return on their settlement than expected, since life settlement agents had the ability, and willingness, to take more in commission.
Today, state regulation requires that the commission amounts taken by agents and brokers be fully disclosed to the client, which has been to the ultimate benefit to the client. As of the date of this post, only certain states have adopted these regulations.
Some life settlement funders today, regardless of state regulations, have made company policy that commissions will be disclosed on any life settlement transaction.
Since the trend of life settlement commissions is moving towards disclosure, it is in the best interest of a person considering a life settlement to find an agent that discloses commissions on a sale of a policy.
For more information, please visit LivePDQ.
Note: Blog posts reflect the opinion of the author, which may differ from the opinion of policysettlement.com.
Posted by Alice Hood on Fri, Jun 25, 2010 @ 02:52 PM
By Marlin E Leisher
Life settlment commissions were exorbitant up until a couple of years ago and considered open season.
When the market was hoping from the late 1990’s to just a couple years ago the amount of life settlement commissions that could be kept by the broker was lawless and was not even disclosed to the owner of the policy.
Unfortunately, when a producer with questionable values sees a way to take advantage of a life settlement commission opportunity, at times the broker would elect to keep up to half of the total offer.
This practice became so rampant and wide spread that many states passed laws on maximum life settlement commission to be paid. Most often, at this point, that maximum would be 6% of face amount or 33% of the net offer excluding the policies cash value. The industry funders have also begun self policing the life settlement commissions that they will allow a broker to be paid.
Click the Livepdq button to see if a life settlement is right for you.
Note: Blog posts reflect the opinion of the author, which may differ from the opinion of policysettlement.com.
Posted by Alice Hood on Fri, Jun 25, 2010 @ 02:28 PM
By Marlin E Leisher
The State of New York has recently passed a law requiring full disclosure of life settlement commissions. Effective January 1, 2011 if a client requests how much commission is being paid and by whom, the information must be disclosed.
This is yet another win for the consumer and continues to legitimize the life settlement industry. Previously life settlement commissions were not publicized to the client. In addition funders, agents, and brokers were able to refuse discloser as a mater of policy.
As the life settlement industry continues to grow, life settlement commissions should become more standard. In addition, with industry growth comes a better understanding of the life settlement process and what life settlement commissions are really paying for.
To learn more about the life settlement process and what life settlement commissions are considered standard, click our Live PDQ button above.
Note: Blog posts reflect the opinion of the author, which may differ from the opinion of policysettlement.com.
Posted by Alice Hood on Fri, Jun 25, 2010 @ 01:53 PM
By Marlin E Leisher
Life settlement commissions..Who's getting paid and why? Life settlements are becoming more and more popular. Because of this, there is more need for consumer advocacy and protection and that is just what the consumer is getting! Often consumers/ life settlement clients don’t know how much of a life settlement commission the agent and broker are taking and they don’t know to ask. Most respectable agents and brokers put a cap on how much life settlement commission they take and if clients simply ask, they will tell you. Some states today are passing legislation making life settlement commission transparent, meaning the commissions are broken down and included in the offer for everyone to see. Be aware of the laws in your state and know what information you are entitled to.
When looking at agents, brokers, and commissions it is important to remember what role they play and why they are getting paid. Agents are paid for their time spent with clients, getting to know you as an individual and evaluating your financial needs. A good agent is affiliated with a reputable broker. The broker puts together the life settlement package which includes applications, medical records, life expectancies, and pertinent information regarding the insurance policy being sold. Collecting all of this information costs time and money. A good broker is affiliated with a reputable funder who is easy to work with and will make a good offer in a reasonable amount of time.
It is important to be aware of how and why commissions are earned. You, the consumers are paying for a service. Put a reputable agent and broker to work for you. For more information on whether you could or should enter into a life settlement click the LivePDQ link above!
Note: Blog posts reflect the opinion of the author, which may differ from the opinion of policysettlement.com.