Straight talk on life settlements: greatly misunderstood, life settlements have endured a lengthy and unfair reputation.
The vast majority of the public have no idea that life settlements even exist, and most troubling is those who could benefit most from life settlements are either completely unaware of their existence or are poorly represented, resulting in uninformed decision-making. The upside is 67 percent of agents said they would be happy to discuss a life settlement with any client who met the appropriate qualifications. This is great news for seniors, as they find themselves more unprepared for retirement than ever before, needing extra resources to cover health care costs and basic living essentials.
The life settlement transaction can be streamlined with the aid of a settlement broker. Life settlement brokers serve as go-betweens who bring together policy owners who seek to sell a policy and providers seeking to purchase them. Brokers, in exchange for a fee, will shop a policy to multiple providers.
Though underutilized in recent years, the life settlement market is primed for growth in 2011, with greater investor interest. While optimism remains high, the life settlement industry faces numerous obstacles on its way to becoming a viable and sustainable market alternative.
Some of the looming challenges include:
1. Lack of agent education. Agents want and seek training.
2. Understanding the intricacies of state regulations and compliance.
3. Consumer knowledge. Only once the industry has complete understanding of the life settlement market will consumers finally have the understanding they need to make wise and informed decisions
While these issues certainly present a challenge, they are not insurmountable. To be recognized as a viable market alternative, the industry needs to emphasize the success stories and shift the focus away from the negative. To get more policies into the marketplace, the industry needs to focus more on the needs of the sellers. Life settlements are a legal right. This is a right that needs to be protected. Policyholders simply need to be informed of secondary market options by agents who have undergone extensive training.
We invite you to share your views and concerns about the industry--go to the SeniorMarketAdvisor.com home page and click on "community," or e-mail Editor Daniel D. Williams at dwilliams@senior marketadvisor.com.
CLARK HOGAN IS THE MANAGING DIRECTOR OF OPULEN CAPITAL IN LA JOLLA, CALIF. WWW.OPULENCAPITAL.COM.
|Printer friendly Cite/link Email Feedback|
|Title Annotation:||Industry Speaks Out|
|Publication:||Senior Market Advisor|
|Date:||Apr 27, 2011|
|Previous Article:||Take action and master the media.|
|Next Article:||Social media update: how to navigate the new [facebook] fan pages.|