In general, life insurance policies tend to get more expensive as the insured ages—even to the point of becoming impossible for many policy owners to afford. Instead of letting their policies lapse, encourage your older clients to consider a life insurance policy settlement as a much more practical and lucrative solution.
Not only will a life settlement alleviate the costly burden that is their life insurance premiums, it can also provide them with a significant windfall—on average, they can expect to earn between 5% to 25% of the policy’s face value by selling it. (It’s no wonder, then, that life settlements have continued to thrive as the global economy has faced challenges like inflation and rising interest rates.)
A life settlement isn’t regulated by the federal government, so although your clients might be interested in pursuing this solution, they might be overwhelmed when trying to decide which company to work with among the dozens of options available on the market. Following in-depth research on the top life settlement companies, here are our top four choices for the life settlement industry’s absolute standouts in 2024.
The 4 Best Life Settlement Companies in 2024
- Top Choice: PolicyAppraisal.com
- For Client Education: Magna Life Settlements
- For Clients in a Hurry: Abacus Life Settlements
- Leader in Industry Innovation: Q Capital Strategies
1. Top Choice: PolicyAppraisal.com
About PolicyAppraisal.com
PolicyAppraisal.com has more than three decades of experience evaluating life insurance policies for the secondary market, helping advisors secure new sources of cash for their clients quickly while maintaining complete confidentiality. In fact, in 1989, PolicyAppraisal.com actually helped to create the life insurance settlement industry from a small office in Cleveland, Ohio—making them important industry innovators. Since 2019, their independent company has focused entirely on evaluating life insurance policies for the secondary market; starting in 2023, PolicyAppraisal.com responded to significant inflation by providing financial advisors and life insurance agents with free policy appraisals.
Pros & Cons of PolicyAppraisal.com
Pros
- Uses cutting-edge algorithms and Value Finder™ software to provide the most accurate policy appraisals
- Industry innovators who helped create the life insurance settlement industry in 1989
- More than 30 years of experience evaluating life insurance policies for the secondary market
- Provides quick turnaround for appraisals
- Prioritizes client data privacy and confidentiality in their policy appraisal process
- Provides detailed case studies of life settlements to show how they’ve helped seniors avert financial challenges
- Offers extensive educational resources through its blog posts
Cons
- Does not work as a broker sending your file out to multiple companies seeking the best offer, but they do not add a hefty lifting commission to your transaction.
- They are not a funding company, but they generate a current market value for your policies and know have relationships with firms that pay top dollar for your policy.
2. For Client Education: Magna Life Settlements
About Magna Life Settlements
What distinguishes Magna Life Settlements from other companies of its kind is its array of educational resources, which include a free life settlement calculator, a blog with lots of valuable and edifying posts, detailed white papers, and a YouTube channel. This means that those who work with them—whether customers or financial advisors—have more opportunities than most to educate themselves on the life settlement process.
Pros & Cons of Magna Life Settlements
Pros
- High-quality educational resources
- Can quickly receive a quote via their website
Cons
- Sale process takes longer than that of many other policy appraisal companies
- Licensed in 38 states (and unlicensed in 12 states)
3. For Clients in a Hurry: Abacus Life Settlements
About Abacus Life Settlements
If speed is a priority, consider Abacus Life Settlements for their rapid quote and sale process. Not only will you receive a quote in 24 hours or less, but you’ll get a formal offer from Abacus in 14 to 21 days, and the payment will arrive a maximum of 21 days after the offer is accepted.
Pros & Cons of Abacus Life Settlements
Pros
- Receive a quote in 24 hours or less
- Fast sale process
Cons
- Not licensed in all 50 states
- Newer company, so less of a track record
4. Leader in Industry Innovation: Q Capital Strategies
About Q Capital Strategies
Q Capital Strategies stands out as an innovator in the life settlement industry. Their in-house estimate system is highly customized and transparent, and not only makes the appraisal process quicker but also more precise. Q Capital Strategies also makes a point of keeping its estimate system as cutting-edge as possible, continually adding new features to improve the methodology.
Pros & Cons
Pros
- The estimate system is highly innovative
- Receive fast quotes through their website
Cons
- The sale process takes longer than many other life settlement companies
- Not licensed in all 50 states
Conclusion
If your client needs a policy appraisal, work with us at PolicyAppraisal.com. Their financial situation will benefit enormously from our more than thirty years of industry experience and our advanced proprietary appraisal process rooted in in-depth knowledge of real industry pricing methodologies.
We’re trusted partners for numerous life insurance agents and financial advisors alike, providing an alternative to traditional life settlement companies and ensuring that you and your client receive a fair value for their policy without paying hefty commissions.
Contact us today for a FREE policy appraisal to begin your streamlined life settlement experience and discover the real secondary market value of your client’s life insurance policy.
