Life Insurance Companies: Stop Skirting the Law and Engage with Life Settlement Companies

Life insurance companies have been trying to buy back policies from consumers using a method that circumvents regulations. This is essentially illegal. However, there is a simple solution for life insurance companies who want to participate in the life settlement marketplace: engage with life settlement companies directly and transparently.

Why it matters. Life settlement providers are licensed experts in buying policies from consumers through a regulated process. There is no prohibition from the financing entity being a life insurance company. In fact, life insurance companies buying policies is neither new nor is it any different from any other financial institution investing in life settlements.

Zoom in. Life settlement companies are easy to find and have been working to inform consumers about the benefits of life settlements. Life insurance is an asset that consumers can manage over time. If selling an unwanted or unneeded policy makes sense, there are well-regulated brokers and providers to help them.

A simple solution. To all the life insurance carriers out there who want to acquire policies, contact life settlement companies and engage with them. Be transparent.

Join with the industry in providing a service to consumers that demonstrates the value of having life insurance as an asset that can be used later in life to achieve all sorts of valuable objectives.

In other words, come on in, the water’s fine.

What are you seeing? Let me know what you think in the comments.