Life Settlements

The Lifeline Program is one of the many life settlement providers we work with. The value of working with Brookfield Partners as a brokerage, is that we shop your life settlement to the many different providers and institutional funders in the marketplace!

At its most basic level, the Life Settlement transaction is quite simple – selling a life policy for an amount greater than the surrender value or for a price that is material to the consumer’s needs. Yet, this “basic” transaction can be arduous or underdeveloped if an agent does not know the following:

Far too many agents are not commanding the highest purchase prices on the market because they are dealing directly with a single funder or they are working with a brokerage whose infrastructure is limited – only accessing a small number of funding institutions. How do these limitations impact pricing? The answer is very simple. It is impossible to have the most successful auction without inviting all of the leading bidders. In this respect, BIP’s infrastructure is unparalleled in the industry. We have relationships with every institutional money source in the market, both nationally and internationally. This depth of auction gives us the ability to create the greatest demand for policies being sold. As a result, our agents are providing their clients the highest possible settlement purchase prices, and at the same time maximizing their commissions.

The most illusive component of the Life Settlement process is the “Gross Purchase Price”. Obviously, the gross purchase price determines the consumer’s payout and the agent’s commission. Yet, in many instances, this gross number is not fully conveyed. Depending on the source that has handled a settlement transaction, far too often, fees are deducted before the purchase price is divulged to the agent. This is another significant reason why agents throughout the country subscribe to BIP’s transparent (full disclosure) negotiation model – we deal in the gross offer!

A Retained Coverage Life Settlement (RCIS) is an ideal solution for an individual who wishes to eliminate premium payments on an existing life insurance policy, while retaining a portion of their life insurance coverage.

To better understand how this transaction works, read the following hypothetical example:
Jane Doe is 81 years old and currently owns a $3,000,000 universal life insurance policy. Every year Jane pays $66,814 in life insurance premiums. Jane’s husband Joe is deceased and her two children are now grown adults. Jane wants to move to a new home and hire help to assist her with daily activities, however she is unable to afford her this plan.

Tom (Jane’s financial advisor) suggested a Retained Coverage Insurance Settlement. Through this transaction Jane would transfer ownership of her life insurance policy to an investor in exchange for cash and a portion of the death benefit (DB).

Jane agreed to a Retained Coverage Insurance Settlement and received $75,000 in cash plus a $1,200,000 irrevocable beneficiary assignment of the policy’s DB.