Effective Price Discovery
A simple, expeditious means for you and your client to directly engage and create competition among a universe of the statutory representatives of the institutional buyers of in-force life insurance for your client's policy. Our process is respectful of your and your client's time, effort, and, honestly, intelligence.
Unlike a broker-led process, which takes weeks or months just to launch because of their contract process with your client and non-value-add steps that they can qualify as “work product”, like getting life expectancy reports, we enable you to receive actionable indications of value from the Providers within a couple of weeks of sharing policy documents and medical records. Upon acceptance of an indication, you and your client advance immediately to a settlement with the chosen Provider.
The highlights
20+
BUYERS REACHED
We engage 10+ of the top Providers - the regulated entities that work with and represent scores of capital sources - private equity, public and private pension, family offices, and insurance carriers
80%
SUCCESSFUL AUCTIONS
If we assess that your policy likely has positive value to the market, more than three quarters of auctions produce a winning bid that is sufficiently compelling to the policy owner
15
DAYS TO COMPLETE AUCTION
Our much simpler staging process gets you and your client to the auction quickly and then we complete the auction expeditiously, not wasting your and your clients' time
60
DAYS TO FUND
If you and your client are responsive to information requests and executing transaction documents from the buyer, sellers can receive funds in less than two months
Your client has no life settlement application or contract with us and we don't waste their time with no-value process steps to create "work product", like securing LE reports that buyers do not use, etc. - and if bids aren't compelling, we don't tie them up with a non-circumvent or limit their ability to pursue other options.
Simple, Transparent
We don't "negotiate" bids in a protracted, multi-round, open auction. Unlike the flawed broker approach, which rewards bargain-hunting behavior, our price discovery process compels max value indications in a 5-day, blind, best-and-final auction, lest the Provider risk not win the policy in an attempt to acquire it at a bargain price.
Effective, Fast
If you and your client assess that a bid is worth pursuing, then and only then does your client sign a life settlement application and then execute a contract to sell the policy, then paying us (and you, if you and your client choose) after they receive their proceeds from the buyer.
Client-friendly
Psychic and financial benefits.
We understand that as a wealth advisor or life insurance professional looking out for the best interests of your client and assessing the potential utility of a life settlement, while maximum bids and net proceeds are obviously of the greatest significance, a broader description of the value proposition of the transaction is important to consider. We deliver that.
We enable the price discovery benefits of real competition among multiple credible buyers without the opacity, inefficiency, and high cost of a broker. Importantly, you are intimately engaged in the process – with end-to-end transparency and an audit trail – and understood by your client to have been the driver of a high-value service win and significant windfall from an asset that would otherwise have been forfeited for little or no benefit.
All executed in a secure ShareFile bid room, not via e-mail and phone calls.
And not only do we execute the process faster and with far fewer unnecessary back-and-forths with your client, we generate winning bids that are typically substantially higher.
Policy Valuation
Calendar: 1 day/<1 hour advisor time
While the market is the final arbiter, with a recent in-force illustration (level minimum premiums to age 100+), we can provide a qualified range of values under various health and discount rate assumptions to inform a discussion between you and your client about the likely utility of pursuing a sale.
Staging
Calendar: 5 days/4 hours advisor time
If your client decides to advance to an auction, you simply upload to a ShareFile folder a copy of the policy, two years of medical records (the more impaired an insured is, the more comprehensive the medical records that we'll need), the premium history (if a guaranteed product), and a copy of the Trust (if Trust-owned). If buyers request other documentation (they sometimes request, for example, other illustrations), it will also be uploaded.
Case Review/Pricing
Calendar: 10 days/0 hours advisor time
The Providers that represent the major and reliable market buyers review policy, ownership, and medical documents, and pose any clarifying questions or request additional documents (e.g., other illustrations, medical specialist) to you and your client to refine their assessment of policy value.
Auction/Bidding
Calendar: 5 days/<1 hour advisor time
Upon completion of the Case Review period, interested Providers have 3 - 5 business days to submit to you their best and final bid and to detail any contingencies that will impact the amount of time and effort that you (the advisor) and your client will likely have to commit.
Settlement Underwriting/Contracting
Calendar: 15 - 30 days/4 hours advisor time
If your client wishes accept one of the bids, they will complete the Provider's life settlement application, after which the Provider generates a purchase agreement, funds escrow, and engages the carrier to change ownership. Funding then typically occurs within 10 - 15 days of the change request.