Life Settlement Process Could Be Much Better Soon


Gregg Gottlieb, a Regal Wealth Advisors Certified Financial Planner, and Jule Rousseau, a Partner at Arent Fox, discuss how the life settlement industry could improve to make it easier to sell a life insurance policy. life. They suggested the reduction in paperwork would make the transaction process less onerous for repeat customers who want to sell their life insurance.

It was particularly interesting to see that almost all stakeholders expressed frustration with the time and effort required to sell a policy. Transaction times often range from four to five months from start to finish and can easily require more than 100 touchpoints between buyer and seller.

I learned that several life insurance companies are either working on streamlining the process, or are already in a position to streamline it, using electronic health records and simplified underwriting.

Abbreviated underwriting alone can save weeks, compared to traditional detailed underwriting, by allowing a life insurance settlement company to estimate a policy seller’s life expectancy based on a medical questionnaire instead of complete medical records. This approach has the potential not only to process more policies before they expire, but also to make a life settlement or viatical settlement transaction much more accessible for millions of American seniors.

Currently, these seniors unnecessarily lose more than $112 billion in life insurance wealth each year.

I was also intrigued by the new entry of other forms of advanced technology into the industry.

A recently founded blockchain startup, LiST, is working to turn life insurance policies into tradable liquid assets by creating a blockchain-based platform. This means there may soon be a new way to fund the sale of life insurance policies globally.

Felix Steinmeyer is the managing director of Mason Finance Inc. of San Francisco. He is an Approved Life Insurance Claims Provider and member of LISA.


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