Owning a life insurance policy can be a present-day asset if necessary. Many older individuals may find themselves struggling to support retirement, there may be unexpected medical expenses to deal with, and various other life-altering things that necessitate extra funds. Those who have a life insurance policy and who may be out of options may want to consider a life settlement. While there are many companies out there that offer life settlements, it is always best to do one’s research, to receive multiple offers, and to choose one that is in one’s best interest. With due diligence, individuals can make the right decisions for their needs.
With that, to help inform individuals, this review is going to discuss one option among money – ALIR Life Settlements.
What Is ALIR Life Settlements?
ALIR Life Settlements is a life settlement company located in Orange County California. The company makes a broad claim on its website that it is a “leader in the Life Settlement Industry,” without providing much information to substantiate its claim. Nonetheless, the company explains that it was founded for the purpose of providing aid and education to those who have a life insurance policy and who may want to use it as a asset.
Dissimilar to many life settlement companies, ALIR is characterized as a “broker” business. That is to say, it isn’t the entity that purchases the settlements from individuals. To the contrary, ALIR “routinely connects policy owners with investors looking to purchase life insurance policies by means of life settlements.” The company’s brokers are there to facilitate the transaction and most likely, they earn a commission as well.
The Basics Of A Life Settlement
Those who are interested in going through with the process of receiving a life settlement should be aware of the basics. A life settlement is a transaction whereby an individual can receive a lump-sum payment for their life insurance policy. The lump-sum payment is more than the surrender value of the policy, but less than the death benefit. There are an array of considerations to take into account before determining whether a life settlement is right for one’s needs. Further, there are many life settlement companies that may use pressure tactics and fraudulent business practices. Therefore, those who are informed and do their due diligence tend to receive the most for their policy.
A Brokerage: Agents And Advisors
As previously mentioned, ALIR Life Settlements is a brokerage, which means that it connects those who are interested in a life settlement with life settlement companies. The website features an entire section dedicated specifically to agents who have clients who are interested in purchasing a life settlement. ALIR Life Settlements claims that it will “work either directly with your client or as an extension of your team.” The company focuses on providing the following features to agents, which in turn may extend to the client:
- Disclosure of all fees
- Locates buyers for the policy
- Evaluates and handles the majority of the paperwork
- Provides countless resources to brokers
- Makes it easier for individuals to experience financial freedom
Another interesting feature to point out concerning its agent and advisors section is that the company also claims to have a “fiduciary duty to protect your client’s assets and secure the best possible offer from them.” The issue here is whether the company actually owes a fiduciary duty to the broker’s client. There are sources that state that brokers do not owe a fiduciary duty to their client and therefore, it is highly unlikely that ALIR has a fiduciary duty to the client as well. In light of this, as the client, it is best for one to practice safe techniques by being concerned solely of their interests – do not let a third party claim that it is working in your best interests because chances are, it may not be true.
How Does ALIR Life Settlements Work?
Before choosing any life settlement company, it is important to consider how the company facilitates the process and ensures that individuals are satisfied with the transaction. According to ALIR Life Settlements, the company has a streamlined process that is minimal in paperwork and further, it is dedicated to ensuring that individuals have open channels of communication throughout the process. Here is the step by step process, as mentioned on the website:
Contacting ALIR
Of course, the first step to getting started with ALIR is to contact the company, either on one’s own or through their broker. Because this company mainly transacts with brokers, it may be best to have one’s broker contact them. At this stage, the company will question one’s circumstances and goals and then, it will educate and explain the process. Further, this stage also verifies if one qualifies for a life settlement based on its terms.
Connecting With Investors
After one’s eligibility for a life settlement has been determined, the company reaches out to its diverse investor base so that the insurance policy can be valued. The company purports to work with a “network of experienced life settlement investors.” In working with investors, ALIR states that it is aggressive in ensuring that one gets the most value for their life insurance policy. Even then, it is recommended that individuals are not swayed by this language – the only person that can act aggressively for one’s interests is the individual themselves. Therefore, if one does receive offers, then it is best to compare it to the offers that other life settlement companies provide so one can verify that they are making the right decision.
Review The Offer
Next, individuals may receive an offer and they are prompted to review it. An offer does not require one to accept. If one is not comfortable with the offer, then it may be best to decline it. Further, the amount of the offer can vary depending on a number of factors, which this review will discuss in coming sections. Either way, it is important to recognize that various companies will provide different offers and it is best to opt for one that reflects one’s needs and the true value of their insurance policy.
Transfer The Policy And Transfer The Funds
If one does decide to accept the offer, the next steps in the process include transferring the policy on the policy holders end and transferring the funds on the life settlement company’s end. Those who do transfer their policy may want to ask the life settlement company if they intent to sell of keep the policy because personal information is often contained therein. Those who purchase policies from life settlement companies may use the information for things that may be less than desirous. Therefore, take precautions and ask questions. Further, one can read the company’s privacy policy to ensure that they are adequately protected at every step of the way. Once the policy is transferred or the beneficiary of the life benefit is altered to reflect the company’s name, then the life settlement company will transfer funds into escrow.
Payment
The final step is the payment process. Here, documents are verified and the individual’s funds are taken out of escrow and transferred to their bank account.
According to ALIR Life Settlements, this process “can be completed in several weeks.” While this may be true, it is important to recognize that it is best not to rush during this process and to avoid pressure tactics. Those who slow down and take their time may find themselves benefiting more than those who go through the process blindly and with the sole goal of turning their life insurance policy into funds.
Why Choose ALIR Life Settlements?
There are dozens of life settlement companies that can facilitate the transaction. Choosing the right company is what may help individuals receive the most for their life insurance policy. Here are a few qualities that ALIR Life Settlements identifies as being good reasons for choosing a life settlement with it:
A Better Option Than A Reverse Mortgage
First, ALIR Life Settlements claims that life settlements are preferable over a reverse mortgage or a second mortgage because the settlement “won’t tape into your home’s equity.” However, this is a given – a life settlement does not tap into any equity, but rather, it is a transaction whereby one is essentially giving up their life insurance policy to another party. Essentially, it means that the benefit of the life insurance policy cannot be used by one’s intended beneficiaries. Further, unlike a reverse mortgage which has loan-like qualities, a life settlement is a sale.
Maximum Value For One’s Life Insurance Policy
Second, the brand’s website states that it provides individuals with “maximum value” for their life insurance policy. The maximum value is facilitated through the company’s robust network of investors. Keep in mind that while the company may have a robust network of investors, it is also working in the best interests of those investors – as in, securing them the best deal. Therefore, the best thing that one can do to protect their interests in the process is do receive multiple offers from investors and to be as diligent as possible.
Quick Turnaround Time
Finally, the company explains that it is recognized for its quick turnaround time. A life settlement is a big decision and it requires individuals to truly assess their needs and to determine whether it is the right option for them. Rather than go in blindly or in a rushed manner, take the time to explore, question, and to look at various offers. While the quick turnaround time may be beneficial to the life settlement company, it certainly does not always benefit the individual who is selling their policy.
Clearly, there may be a number of promising qualities of this life settlement company. However, rather than risk one’s interests and make the wrong decision, it is best to verify that it is actually the right company to transact with by asking questions and having any concerns addressed.
Life Settlements And Viatical Settlements Through ALIR
ALIR also mentions on its website that it offers both life settlements and viatical settlements. While some companies and organizations do not distinguish between the two, others do. To provide insight, a viatical settlement is a term reserved for those who are terminally ill and are looking to sell their life insurance policy. On the other hand, a life settlement is a transaction whereby an individual with a longer life expectancy is interested in trading their policy.
It is clear that there is a very fine distinction that actually may be unnecessary. Therefore, whether one chooses a viatical settlement or a life settlement – it is still necessary to perform a cost-benefit analysis and to determine what is best for one’s needs. Further, it is also important to recognize that life settlement companies only benefit from one’s policy after the individual passes away. As a result, in either case, the company is interested in individuals who are older, may be in poor health, and who may not have a long-life expectancy as it is.
ALIR Calculator Tool
There are a number of factors that the life settlement company will consider when it comes to valuing one’s policy. For example, the company often looks at one’s age, life expectancy (the shorter the better for the company), one’s health, the value of one’s life insurance policy, the company that the policy is held with, and more.
To help individuals receive a quick assessment of their life insurance policy and how much they can receive for their life settlement, ALIR has a calculator tool on its website. The calculator tool requests that individuals input information such as their name, phone number, email, date of birth, sex, policy face amount, annual premiums, whether one is a tobacco user, cash surrender value, and health status. Of course, the more dire one’s situation is, the better for the company because it wants to make a profit quickly from the policy.
After imputing all of the necessary information, a quote will be sent to one’s email. Keep in mind that this is a potential amount that one can receive for their policy according to the company’s assessment tools. To receive a fair value, ask around and discuss with the company – negotiations may be possible as well to secure a better deal.
News Logos Without News Stories
The ALIR Settlements website is extensive and those who look around the website may notice oddities, which may suggest that the business is not as legitimate as it seems at first glance. For example, those who visit the “About Us” page will find a number of news company logos, but no link to an underlying news story or any information. This suggests that the website may be trying to convince potential customers that it has been discussed by various news sources – when it actually has not. This type of practice is an odd one and it is simply worth being aware of.
ALIR Life Settlements Summary
Ultimately, those who are looking for a life settlement may want to consider ALIR Life Settlements as a potential option. The brand’s website has a number of testimonials on its website as well explaining user experiences, but of course, there is no way to verify its validity. Therefore, when transacting with this company, rely on the facts, ask questions, adequately assess offers, and work to ensure that the company is truly doing its best to secure a fair offer. Further, do not allow any company to pressure one into making a decision. A life settlement is a serious issue that requires time and due diligence to ensure that it is the best option for one’s needs. To learn more about ALIR Life Settlements, just visit the brand’s website today. There is a phone number on the right-hand corner of the website to contact the company too.
