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.
20+
Buyers Reached
We engage 10+ Providers, the regulated entities that represent scores of capital sources, private equity, public and private pension, family offices, and insurance carriers
90%
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 clear your and your client's "hurdle"
15
Days to Actionable Bids
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 - 75
Days to Funding
If you and your client are responsive to information requests and executing and transaction documents from the buyer, sellers can receive funds in less than two months from introduction to the market
1 Policy Analysis and Valuation
Calendar: 1 day/<1 hour advisor time
While the market is the final arbiter of value, 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.
2 Staging
Calendar: 5 days/4 hours advisor time
You simply upload to our ShareFile bid room a copy of the policy, a signed HIPAA release form, 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).
3 Case Review/Analysis
Calendar: 10 days/0 advisor time
The Providers that represent the major and reliable institutional capital review all submitted 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.
4 Bidding/Auction
Calendar: 3 - 5 days/0 advisor time
Providers have 3 - 5 business days to submit a 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. If multiple bidders are within 5% of one another, we have a one-day run-off for bidders to refine their bid.
5 Contracting
Calendar: 15 - 30 days/3 hours advisor time
The winning Provider generates a purchase agreement, collects a small number of additional documents (e.g., photo of driver's license and social security card), signatures and attestations, and confirm that the policy remains in force before inititiating transfer of the policy with the carrier.
6 Change of Ownership & Funding
Calendar: 5 - 10 days/0 advisor time
The winning bidder funds escrow, submits a change of ownership request with the carrier, and places the policy with a Securities Intermediary that holds the policy and escrow until the carrier transfers ownership and funds are disbursed. The carrier is statutorily obligated to transfer ownership in <30 days, but typically executes in 5 - 10 days.
WE ARE LOATHE TO WASTE YOUR TIME OR ENERGY
Rigorous, but efficient and expedient
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.
If you are at all familiar with the broker process, you will see how much less time we require for the data gathering (because we do not get 3rd party LE's - they do not add value and only take time) and the Bidding process, which we complete in days, while brokers take, literally, months, making your client wait far too long to learn what the winning bid and net proceeds will be.
If you and your client are responsive to document requests and executing the statutory life settlement contract (there are no elements to negotiate - the contract is approved by the state of the policy's situs), we typically complete transactions in 60 - 75 days.
