Retirement can be a difficult stage in one’s life, especially if they have not planned adequately for the years to come. While there are numerous ways to generate funds, if all options have been exhausted, then it may be the right option to consider a life settlement. A life settlement is a transaction whereby an individual sells their life insurance policy for more than the surrender value, but less than the death benefit.
Competition in the life settlement industry is fierce and companies tend to use an array of tactics – some of which are questionable – to generate business. Fortunately, this insight into a potential life settlement company may help individuals make the right decision for their needs. With that, this review would like to introduce Abacus Settlements, LLC.
What Is Abacus Life Settlements?
Abacus Life Settlements, LLC is a life settlement company headquartered in Orlando, Flora. Like most life settlement companies, Abacus Life Settlements proclaims that it has been “a leading Provider and Buyer of Life Settlements” since 2004. However, surprisingly enough – Abacus Life Settlements also supports its claims. As the company explains, it has been consistently ranked in the top five in the nation concerning overall face value purchased. Further, the company plans on growing and continuing to provide individuals with the opportunity to purchase a life settlement.
A Member Of The Life Insurance Settlement Association (LISA)
Those who are interested in purchasing a life settlement may find that some companies designate themselves as members of LISA. LISA is a trade association that is focused on the life settlement industry. Most of the organization’s members include brokers, providers, financial entities, and service providers. Further, LISA can be considered as a neutral force in the industry, in light of the fact that the company is not an advocate, but is simply an informative organization that works to ensure that both interested individuals and companies are conducting their transactions in a fair manner.
According to the organization, it values and works to foster credibility, professionality, transparency, accountability, disclosure, and collaboration. Therefore, those who are interested in a life settlement with Abacus Life Settlements will find this quality to be a positive one.
What Makes Abacus Life Settlements Different?
The amount of information that a company provides prospective individuals can be telling of the company’s transparency. When it comes to Abacus, it truly does provide a substantial amount of information, including analysis of factors that make it different from other life settlement companies, which are as follows:
Faster And Better Offers
First, Abacus Life Settlements claims that it provides faster and better offers. The company works to provide individuals with “exclusive 24-hour pricing.” Be aware that while speedy resolution of a life settlement can be helpful, it sometimes is best to take the time to assess various policies, to apply with different companies, and to choose between multiple offers. This way, individuals can be certain that they are making the right decision for their needs.
Unsurpassed Customer Service
Second, the company claims that it providers unsurpassed customer service. This quality may be true – one of the first things that individuals notice when visiting the brand’s website is the customer service chat window that pops up and that is available for those who have any inquiries. Further, individuals can contact the brand through its call-in number of send an email as well.
Institutional Funding
Third, the company mentions “institutional funding” as a factor that sets it apart. Unfortunately, this is an ambiguous term and in all likelihood, it may refer to funding from investors. However, those who are looking for more insight may want to contact the brand and ask about this quality and what it actually means.
Larger Policy Ranges
Fourth, the company mentions that it provides individuals with larger policy rangers. The policies valued often range from $100,000 to $50 million, which both are substantial amounts of money. Also unlike other companies, this one mentions that it can likely assist, regardless of how large or small the policy is. This quality is compared to other companies, where the minimum policy amount for eligibility is around $100,000.
Purchases All Policy Types
Finally, Abacus Life Settlements mentions that it purchases all policy types – including term policies. Keep in mind that many companies choose not to work with individuals who have certain policies due to their state’s securities laws or for other reasons. In this case, it may be best to consider why Abacus Life Settlement is working with most types of policies and if it means anything for the transaction.
Clearly, Abacus Life Settlements has a number of unique qualities that cannot be found elsewhere. The company is more prone to working with individuals with various policy types, most individuals may qualify, and the company claims to offer a larger policy range. In regard to this last factor, it still should not preclude one from doing their due diligence and reviewing other potential offers. The more offers the one has, the better of a decision they can make for their interests.
Abacus Life Settlements Licensing
It is highly recommended to always work with a licensed life settlement company. In fact, licensing is the first quality that anyone interested in a life settlement should look for in a potential company. In this case, Abacus Life Settlements is licensed in almost all states, except Washington, Oregon, Idaho, Montana, North Dakota, Nebraska, Wisconsin, Alaska, Vermont, West Virginia, and Louisiana. Those who live in any of the states that the company is not licensed in may want to consider an different company to work with.
A One-Step Verification
Abacus Settlements, Inc. also offers individuals the opportunity to complete a one-step verification process to determine whether their life insurance policy qualifies them for a life settlement. Further, this one-step verification reduces the amount of time that one needs to spend concerning paperwork. Those who are interested in the one-step verification will be promoted to fill out a form on the brand’s website.
The form requests information such as one’s name, email, phone number, gender, death benefit, policy type, premiums, cash surrender value, and policy loan amount. It is important to note that the figure that the company provides through this one-step verification is a quote and not a valid offer. To receive a valid offer, it is best to receive it directly from the company after one has gone through the necessary steps.
The Process Of A Life Settlement With Abacus Settlements
Every life settlement company has a different process of getting to the end goal of providing individuals with a policy. In this case, the company works to make the process as simple as possible. Those who visit the company’s website will notice that the company identifies six phases to its life settlement process and they are as follows:
- Offer
- Acceptance
- Contracting
- Verification
- Ownership Change
- Funding
It is important to note that there may be preliminary steps as well. For example, before receiving an offer, one needs to provide the information necessary to assess the offer that the company wants to give. Individuals are often prompted to disclose their type of policy, the life insurance policy provider, their age, whether they have any health conditions, and the like. Once the company assesses the policy, they can generate an offer. After the offer is made, an individual can either reject or accept the offer – and hopefully, one has multiple offers from various companies at this stage so that it can choose the best one. If one accepts the offer, contracting documents will be developed and then a third-party verification service will review the documents for compliance with legal regulations and other standards.
Finally, after all of the main steps are taken care of, the policy holder transfers ownership of their life insurance policy to Abacus Life Settlements and the funds that were placed in escrow are issued. While it may seem like all of the above steps can be completed quickly, the ideal approach is to take one’s time and to not rush through the process. Those who are more cautious and prudent throughout the process may find themselves experiencing a better return on their life insurance policy than those who blindly go through the steps.
Considerations When Choosing A Life Settlement Policy With Abacus
Abacus Settlements also identifies when a life settlement is a good option for policy holders. Rather than using pressure tactics, the company is transparent about the process and explains that there are three situations:
No Need For The Existing Life Insurance Policy
First, most people choose a life settlement because they do not need their existing life insurance policy. Oftentimes, the policy is more of a burden than beneficial because it costs one a great deal to maintain the policy – which leads to the second reason.
The Policy Premiums are Too High
Second, if one’s policy premiums are too high, then it may be time to consider a life settlement. Policy premiums tend to increase over time, which make the policy difficult to maintain in older age. Therefore, those who do not need the policy and are unable to keep up with the premiums may want to consider a life settlement.
A Need For Funds
Finally, those who are in need of funds may want to consider a life settlement. Life settlements enable individuals to receive a lump sum payment for their policy. The amount that one receives depends upon a number of factors, such as their age, health condition, policy type, and policy company.
It is important to note that while there are a number of factors that suggest it may be a good decision to choose a life settlement, there are also counterbalancing considerations. For example, life settlements may come with a tax burden, there may be commission fees, there may be implicit fees in the transaction, and a life settlement prevents one’s intended beneficiaries from receiving anything under the policy once it is transferred to the life settlement company. Before choosing a life settlement, it is imperative to be certain that it is the right choice.
The Viatical Settlement Through Abacus Settlements
These days, the terms viatical settlements and life settlements are used interchangeably by most companies. However, there are some that still differentiate between the two and on a fine difference as well. While a life settlement applies to most insurance policy holders, a viatical settlement is a transaction especially for those with a terminal illness. Because life settlement companies stand to benefit the most from viatical settlements due to the rapid return rate, a majority of states regulate these settlements very seriously.
Fortunately, Abacus Life Settlements has been transacting viatical settlements for years without any problems arising regarding its compliant with regulations. Further, the fact that this company is licensed and complies with the regulations suggests that it is one of the better options for a viatical settlement. Here are a few of the main qualities of a viatical settlement, according to Abacus Settlements:
- Viatical settlements are exclusively for those with a terminal illness
- They apply to individuals of all ages with a life insurance policy
- Proceeds range from 50% to 80% of the policy’s face value
- The IRS may not consider viatical settlements as taxable income
Keep in mind that a viatical settlement may not be a good deal for one particular reason – in most cases, the terminally ill patient may not survive in any event and beneficiaries under the policy will receive the face value of the policy upon the policy holder’s passing. It does not make sense to choose a life settlement for lesser value when the patient may not survive long as it is.
Qualities To Be Aware Of
While Abacus may seem like a reputable company on its face – and it very well may be – there are still a number of issues that cause one to question the company, its reputation, and credentials. After further research, here are a few things to be aware of:
Multiple Websites
First, Abacus Life Settlements has multiple company webpages. For example, another webpage is Abacus Life Services. Although the website has a different style, the information is substantially similar and so is the location.
Various Better Business Bureau Pages
Second, the company has multiple webpages with the Better Business Bureau and while the company has received an “A” rating on most of them, there are no reviews to support the rating. Normally, a company ranked on the BBB has some reviews to support the rating. Those who follow ratings on such third-party entities such as the BBB may find this to be a cause for alarm.
Very Few Reviews
Finally, those who perform a search of Abacus Life Settlements will find that there are very few to no reviews about the company. While this does not point to any concrete fact, it does suggest that the service is not commonly chosen or maybe that those who have received a settlement with the company have nothing to say or do not use social media to express their opinions. Either way, it is just something to take note of.
Abacus Life Settlements Summary
Ultimately, those who are interested in getting started with a life settlement may have a significant decision to make. There are many life settlement companies out there, many of them vying for one’s business. Rather than make the wrong decision, it is best to go through the process slowly, to assess the potential companies, to consider various offers, and to ensure that one is getting the best deal. To learn more about Abacus Life Settlements may want to visit the brand’s website and to contact the brand with any questions, concerns, or how to get started as well – assuming that a life settlement really is the right choice.
