When my partners and I first created the Life Settlement Network, and were becoming increasingly involved in the Life Settlement industry, our friends and family had never heard of life settlements.  For the most part, they learned about this new financial tool from us.  Initially – most had responses something along the lines of “Sounds too good to be true”….of course the part left unsaid is – “and it probably is”.

For my more senior family members and friends, the notion that insurance companies would hide and even legislate against this option for seniors was frustrating/infuriating.  Sure – the Life Settlement industry is not perfect, but selling your life insurance in a life settlement still represents a huge benefit for senior policyholders.  Really – the industry needs more awareness and education – both at the policyholder level and for financial advisors.

Since we run a successful Life Settlement company – you can guess how our review of life settlements look.  To help off-set the concerns of those of you with a prudent wariness of things that appear “To good to be true” – lets see what large, reputable, independent 3rd parties have said:

“An incredible 88% of universal-life policies never result in a death benefit being paid. The policies either lapse or are surrendered for their cash value. In both cases, a life settlement may make more sense.” – Time

“Before the life-settlement industry grew, life-insurance companies were the sole buyers of unwanted policies. Now consumers have a choice, and the chance to get more if they cash their policies in.” – the Economist

“The assignability of a life insurance policy is a benefit that a consumer acquires when he or she becomes a policyholder. Life insurance companies are attempting to foreclose the emerging secondary market for life insurance by lobbying for barriers to entry into the market, by boycotting life settlement firms, and in some cases, by preventing their agents from informing policyholders of their right to contract with a life settlement company.” – the Wharton School of Business, University of Pennsylvania

Kiplinger’s, the Wall Street Journal, the New York Times and many others have offered their analysis of the industry and of life settlements – all very favorable.

It really is less about “too good to be true” and more about “what a great opportunity”!