Opulen Capital Life Settlement: Understanding Quick Sales

So the market has you strapped and the economy has tumbled to a point where your retirement fund is needing life support. While your first thought may be to sell your life insurance policy to a life settlement broker, be careful not to move too quickly without the right information. In a market where there’s an influx of sellers and a small pocket of cautious buyers, your hasty, uninformed action could cost you.

Just because AIG used the life settlement market to securitize its obligation to the federal government does not mean you can garner a similarly great deal within a few short days. In fact, haste is not your friend in the competitive, ever-growing life settlements arena.

Buyers are still buying at realistic yields, but those have decreased within the past year. Buyers’ yields, once around 10 percent, are now topping 17 percent as buyers return to the market with more caution than pre-recession. The good news is that buyers are indeed returning, and the more competition in the market for your policy, the lower the yields will fall.

Thanks to the instability in the financial market, buyers in the life settlements market are now conducting more due diligence. To ensure their purchases are compliant with current regulations, buyers are now expecting to see more inquiries into premiums, policy language, and policy holder data in an effort to mitigate more of their purchase risks and create stronger, more responsive investments.

And buyers are now proposing shorter bidding periods – typically one week to as low as 48 hours. In a market used to two-week decision making cycles, the speed is often overwhelming for new sellers.

Life settlement brokers are also caught in the faster turnaround times. Buyers are now expecting their bids to be presented within 48 hours of a life settlement broker receiving it.

Opulen Capital advises brokers and clients to understand these new bidding constraints in the life settlement market and to develop their own knowledge and expectations before entering into any life settlement negotiations. Brokers – do your clients understand what the average buyer yields are now and what monetary of life settlement offer they may receive? Sellers – what are your payment expectations? What is your price? Is that in alignment with current life settlement market conditions?

With so many fast turnarounds in the life settlements agreements, sellers and brokers need to be aware of what closing requirements are needed in order to meet the deadline set by the buyers.

Located in La Jolla, California, Opulen Capital is a specialized financial services firm focusing on products and services tailored for senior citizens. Opulen Capital is one of the leading firms offering Life Settlement opportunities for high net worth clientele. We leverage unrivaled experience and exclusive relationships in the life settlement marketplace to structure, obtain, and sell life insurance products to maximize cash profits for our valued clients. Opulen Capital’s mission is to continue to provide the best solutions for our clients through the highest level of integrity and service. For more information, visit our website at http://www.OpulenCapital.com or call Opulen at 877-OPULEN-1 (877-678-5361)