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Who are the main players in a life settlement transaction?

There are three main players in a life settlement or viatical transaction:

• The original client who purchased the life insurance policy
• The life settlement provider who purchases the policy
• The life settlement investor who buys the purchased policy from the life settlement provider

Life settlement or viatical client

A client wishing to liquidate his life insurance policy works with a life settlement provider to receive the greatest possible payout from his policy.

The price the client receives is affected by many factors, including the policyholder’s age, health condition, and the terms and conditions of the policy. And, of course, his negotiating skills and need for cash will influence the final purchase price.

That sum will usually be greater than the policy’s cash accrual value but less than the face amount.
Life settlement or viatical provider

Although the industry contains providers of all sizes, the field is dominated by large groups, staffed with analysts who specialize in valuing policies and packaging them for resale onto large investors seeking to diversify their portfolios.

State and federal government entities regulate the industry since it involves large investment sums. In fact, over 40 states have enacted legislation involving sales of life insurance policies to third party investors.
Life settlement or viatical broker

Some policyholders will enlist the help of intermediary brokers. These brokers, typically commission-based, shop the client’s policy to major life settlement providers, looking to get their client the best deal.

They will consider offers based on factors such as offer price, funding variables, time to close, and the net proceeds to the customer.

Like life settlement providers, brokers’ actions and conduct are heavily regulated in many states.

Life settlement or viatical Investors

Although life settlement providers act as the buyers of policies for the most part, they are typically funded by the end purchasers, the investors. Although, in some cases, life settlement providers will purchase, and hold, policies for their own investment portfolio.

Investors range from individual investors to large buying entities, including pension funds and hedge funds. Investors’ funds ultimately drive this secondary insurance marketplace.

Have you purchased Life Settlements (Viaticals) from Life Partners Holdings?

If you have purchased Life Settlements from Life Partners, you may be able to join a legal action to receive compensation for your losses. Complete the form on this page, or call 1-800-934-2921 to find out if you have a case.