The life insurance settlement industry has been on a steady rise since the 1980’s, with Conning predicting a 1-2% increase since 2019. Direct to consumer operations have also experienced growth during this time as well, with insurance companies following the retail and travel industries who have operated on this model for years. In this blog, we’ll explain how the method works and who these operations represent.
How does it work?
The direct to consumer method works exactly as it sounds. Rather than navigating the life insurance settlement space themselves, direct to consumer life settlement providers allow policyholders a simple way to relinquish their policy and receive a monetary settlement in return. As a result, these consumers might be able to sell their policy faster and acquire a lump sum of cash sooner.
Steps to Selling Your Life Insurance Policy with a Direct to Consumer Buyer
- Find a suitable direct to consumer operation
- Complete a health questionnaire and submit medical records
- Direct to consumer operation values policy and relays offer to an advisor
- Once an offer is accepted by the policyholder, closing documents are issued
- Ownership is transferred and policyholder receives settlement funds
Why Use Direct to Consumer Operations
Direct to consumer operations take much of the stress out of working with a middleman, reducing time spent navigating the intricacies involved in life insurance settlements. These companies provide a streamlined experience for the consumer, handling life expectancy estimates, medical record reviews, and more. This due diligence gives institutional investors peace of mind when dealing with direct to consumer operations.
Direct to consumer operations represent consumers at its heart. However, when dealing with investors, these companies provide institutions with the data to assess risk and accurately determine their return on investment. Be sure to reference this blog when determining whether or not a direct to consumer approach will work for you.
To explore authorized direct to consumer LISA members in your state, use our Find a Provider tool.