Opulen Capital Life Settlement: Predators In The Market

It’s no wonder insurance companies and insurance associations are reluctant to support the emergence of the life settlements market. It’s no secret that a large percentage of life insurance policy benefits go unpaid each year. In fact, millions of dollars go unclaimed due to surrendered policies, lapsed policies, and unpaid premiums. But that’s not the only reason insurance companies are not life settlement fans.

It’s the predators. In fact, life settlement experts are in total agreement with life insurance companies in their distaste of predatory practices in the life settlements market. While the majority of life settlement brokers, providers, and investors follow the strict letter of the law, predators exist in an industry that can ill afford it.

Our industry has seen the evils of predatory practices up close and personal. When strangers were insuring other strangers and selling the policies on the open market, the life settlements market and regulatory bodies responded in kind to prohibit stranger-owned life insurance policies and attach strict punishment. When investors paid seniors to buy policies and then sell them on the life settlements market, the industry took one more embarrassing hit. The response was just as swift, thankfully, and the practice of spinning policies is no longer allowed. And when seniors were purchasing life insurance with the full intent of selling them as soon as possible on the open market, the life insurance industry understandably took action to halt the fraudulent and unfair practice.

Today, the life settlements industry has proven its sincerity in business practices by following more stringent guidelines and providing more transparency in all aspects of the life settlements deal. From disclosure by brokers of the policy holder’s various options to the assurance that policies are not purchased solely as an investment vehicle, the life settlements market has adapted to new regulation in an attempt to convince buyers, sellers, and industry groups of its viability as an alternative investment strategy.

Thankfully for all involved, there are now financial regulations, capital gains requirements, and regulatory oversight that lends that extra measure of control and assurance that investors and sellers demand.

A few things for investors and sellers in the life settlements market to look for in their life settlements company:

• The company is not also selling life insurance or any product that would compete with the life settlements market.
• The company is working for the policy owner and advisor, not the investor.
• The company obtains bids from several providers.
• The company has a state-approved anti-fraud policy.
• The company does not hold any ownership interest in a life insurance or other life settlement company.
• The company uses state-approved forms and holds state licensure.

Most life settlement companies and brokers strive to ensure all industry standards are met. If you’re unsure about the life settlement company or broker you deal with, make sure to run the previous questions by them. While the industry has come a long way to gaining investor confidence, it never hurts to approach any investment with caution.

Opulen Capital’s mission is to continue to provide the best solutions for our clients through the highest level of integrity and service. The strength of our business is our commitment to improve our client’s financial net worth. For more information on whether your policy qualifies for a life settlement arrangement, contact us at 877-678-5361 or visit http://www.OpulenCapital.com.