Category: Life Insurance Settlements

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.

For those in need of instant cash and who have an insurance policy that they are thinking of surrendering, life settlements may offer a viable and promising solution. However, while life settlement companies tout the benefits of their policies, there a number of factors concerning life settlements that they don’t want policy holders to know about – and rightly so. The issues surrounding a life settlement policy certainly are ones to be worried about. The good news is that with the right management techniques, information, and effort, one can adequately protect themselves.

The Basics Of A Life Settlement Policy

Before delving into what life settlement companies do not want policy holders to know, it is necessary to understand the basics of such policies. Essentially, a life settlement, previously known as viatical, is a transaction between a policy holder and a life settlement company. In the transaction, the policy holder sells their life insurance policy to the settlement company for an amount above the surrender value, but below the death benefit. Depending upon the company one is dealing with, it may assume the premium payments. While this does not seem like a bad transaction, it certainly can be if one is misinformed and does not do their due diligence

Recently, to improve their numbers and to introduce life settlements to more individuals, one life settlement company recruited actress Betty White. In the advertisement, she calls life settlements ideal for “savvy senior citizens needing cash.” This certainly isn’t a false statement – but it does require one to be savvy and unfortunately, many aren’t when it comes to policies, not because they don’t research enough, but due to the fact that understanding the ins and outs of policies can be complicated, especially for older individuals unversed in technical terminology.

Therefore, to improve one’s chances of choosing the right policy and to enhancing their level of information, here are a few of the qualities that users should be aware of in terms of what life settlement companies do not want policy holders to know:

Life Settlements Pose Privacy Risks

Technology is evolving and private policy statements are difficult to find and understand. These issues make it exceedingly difficult to determine whether their information is safe. Those who choose a life settlement are prone to privacy issues because the policy can be sold off to a third-party, such as an investor, bondsman, hedge fund manager, and so forth. These parties not only have the policy in their hands, but also the information that comes with the life insurance policy – such as a rage of personal data, one’s health condition, and more.

Even more harrowing is that one’s life insurance policy can end up in the hands of thugs and those who may want to take the course of someone’s life into their own hands to score a buck. This type of scenario is exactly what a new book called The Carnage Account by Ben Liberman contemplates.

Financial Risks Are Possible, Too

Aside from the privacy policy risks, there are financial risks as well. Many individuals think that when they choose a life settlement, they’ll receive a windfall of cash. While this may be true in some instances, sometimes a life settlement can be a bad option as well. Brokers earn a commission, so it is in their best interest to convince individuals that it is a “good deal” and one in the policy holder’s best interest. However, if one does the math, the surrender value may be close enough to the life settlement amount and further, it could be a great deal less than the death benefit.

Worse, one may also find themselves paying for the policy’s premiums or another potential policy that they are interested in purchasing with the proceeds may be a worse policy than the initial one. Taking these factors into consideration can help individuals may better decisions about their life settlement policy and whether it is the right solution for them.

Ultimately, the best thing that individuals can do to protect themselves is to make sure that they are informed and have the tools and resources that they need to make the right decision. Hopefully the information contained herein provided some insight and support.

HarborLifeSettlements.com promises to pay you a lot of money in exchange for your life insurance policy. Find out everything you need to know about this company today in our review.

What Is Harbor Life Settlements?

Harbor Life Settlements, found online at HarborLifeSettlements.com, claims that its customers can “hit the retirement jackpot”. All you need to do is apply for a life settlement.

Life settlements are a growing trend in the United States. A growing number of American seniors are getting life settlements. Basically, a life settlement involves selling your insurance policy.

Harbor Life is one of many companies willing to buy your life insurance policy in exchange for a settlement.

How much money can you get? The Harbor Life Settlements website features stories of people who received $220,000 from Harbor Life in exchange for a $600,000 policy.

Obviously, there must be a catch behind Harbor Life Settlements, right? Let’s take a closer look at how these businesses work.

What Is A Life Settlement?

A life settlement is a cash payment you receive in exchange for selling your life insurance policy to a third party. That third party can be a company – like Harbor Life – or any entity other than the company that issued the policy.

The settlement is more than the policy’s cash surrender value, but less than the net death benefit.

The Financial Industry Regulatory Authority, or FINRA, recently issued a warning to seniors about life settlements. However, FINRA maintains that life settlements can also be a legitimate source of liquidity for older Americans:

“Life settlements can be a valuable source of liquidity for people who would otherwise surrender their policies or allow them to lapse—or for people whose life insurance needs have changed.”

Before the life settlement industry emerged, people had two options when dealing with a life insurance policy they no longer wanted or needed: they could surrender the policy for its cash value or allow it to lapse. The life settlement industry offers a third option: you can sell your policy (or the right to receive the death benefit) to an entity other than the insurance company that issued the policy. This transaction is called a “life settlement”.

When Did Life Settlements Emerge?

Life settlements emerged as an offshoot of the viatical settlement industry that developed in the 1980s. Viatical settlements gave AIDS patients and other terminally ill policyholders a source of liquidity. They became popular with those with a life expectancy shorter than two years.

What’s The Catch?

For most people, getting paid hundreds of thousands of dollars for a life insurance policy sounds great. So what’s the catch?

Here’s how FINRA explains the catch:

“[Life settlements] are not for everyone. Life settlements can have high transaction costs and unintended consequences. And even if you decide a life settlement is generally right for you, it can be hard to tell whether you are getting a fair price.”

FINRA recommends that people familiarize themselves with their existing life insurance policy to ensure they fully understand their options. They also recommend that people shop around for the best offer and only deal with licensed buyers and brokers before entering into a life settlement.

How Do Life Settlements Really Work?

Basically, someone buys your life insurance policy because they want to make money when you die.

You sell your life insurance policy to someone, and that person continues paying for that policy.

The people who buy life settlements are typically called life settlement companies or life settlement providers. Harbor Life Settlements is one such company. These companies are typically organizations that do two things with your policy:

• They hold your policy to maturity and collect the net death benefits or resell policies
• They sell interests in multiple, bundled policies (say, to hedge funds or other investors)

In exchange for giving away your life insurance policy, you receive a lump sum payment. The payment you receive will vary based on your age, your health, and the terms and conditions of your policy, among other factors. Typically, the life settlement company wants to pay you more than the policy’s cash surrender value, but less than the net death benefit.

In some cases, the life settlement company will pay you a lump sum for your policy along with an agreement to pay any additional premiums required to support the cost of the policy for as long as you live.

To be clear, when you sell a life settlement policy, the person who buys your policy has a financial interest in your death. They will benefit financially when you die. The sooner you die, the more money they make.

Are Companies Like Harbor Life Settlements A Scam?

Life settlement companies aren’t scams. It’s a legitimate industry. However, many people see the industry as controversial. Others describe it as “sleazy”.

Life settlement companies have been known to target old people – particularly old people with failing health. The sooner you die, the more money the life settlement company can make.

Life settlement salespeople have also been known for their aggressive sales tactics and abuse.

Nevertheless, that doesn’t mean that you shouldn’t consider a life settlement. Life settlements can be a great source of liquidity for a senior. If your children or other family are well-prepared financially, and you no longer need your insurance policy, then you may want to consider a life settlement policy.

How Does Harbor Life Work?

Harbor Life promises to pay customers up to 40% of their policy value in cash. They also claim to “pay for everything” and charge “absolutely no fees”. Plus, anyone can get a free estimate with no obligations.

You can request an estimate in less than 5 minutes online. And, Harbor Life will buy your policy in cash for as little as 10 days. They claim other companies typically take “6-9 months”.

So what’s the catch with Harbor Life? How does Harbor Life really work? Keep reading to find out.

What’s The Catch With Harbor Life?

Harbor Life makes everything seem easy, free, and convenient. They prominently advertise stories of how they paid someone $220,000 in cash for a $600,000 life insurance policy.

Plus, they do all of this without charging any fees. The company seems to be doing this out of the pure goodness of its heart.

Obviously, nobody gives away stuff for free online. So what’s the catch with Harbor Life?

Harbor Life does not actually provide life settlements to customers. Instead, they’re a “life settlement marketing company.” They collect leads for life settlement companies. Harbor Life likely appears to sell your contact information – like your phone number or email address – to these companies.

Harbor Life claims to refer qualified policy owners “to one or several licensed life settlement brokers or providers.” In exchange, “Harbor Life will be compensated for life settlement transactions that originate on www.harborlifesettlements.com.”

The company maintains that “there is no guarantee that every user will receive an offer.”

They also claim that their calculator has little connection to what you’ll actually receive from your life settlement:

“The Life Settlement Calculator is a tool intended to assist Harbor Life in the evaluation and qualification of life insurance policies. It is not intended to represent a bid or an actual offer to purchase a life insurance policy. Use of the Life Settlement Calculator tool does not guarantee that any life settlement provider will or will not offer to purchase a policy.”

Furthermore, by using that calculator, you’re giving Harbor Life permission to sell your contact info to any “licensed entity”:

“By using the Life Settlement Calculator tool, you authorize Harbor Life to send your information to licensed entities to contact you, including by telephone.”

Basically, Harbor Life will collect your information, pre-screen you, then sell your personal information to its partner companies. Those companies will almost certainly charge fees when buying your life insurance policy with a life settlement. Although Harbor Life doesn’t charge customers any fees, the company makes no similar guarantee about its partner companies.

About Harbor Life

Harbor Life, Corp. is headquartered in Austin, Texas at the following address:

107 Leland St, #1
Austin, TX 78704

You can get in touch by phone at (800) 694-0006. The company describes itself as “a life settlement marketing company” that “will refer qualified policy owners” to various licensed brokers or providers.

Harbor Life appears to be a brand new company. The domain was registered on September 13, 2017.

Harbor Life Settlements Conclusion

Harbor Life doesn’t appear to be a scam. However, the company engages in some annoying and shady marketing practices.

The company’s website features stories of people who earned $220,000 by selling their life insurance policies. There’s also a calculator that seems to exaggerate the value of your expected life settlement. And, by using that calculator just once, you’re giving Harbor Life permission to sell your information to licensed life settlement companies. A line at the bottom of the website also claims that users can expect to get paid “an average of 4 to 11 times more than what they would receive from the insurer for a surrendered policy.”

Harbor Life also frequently claims that it’s a free service with absolutely no fees. However, the company seems to refer you to licensed life settlement companies that do charge fees.

Ultimately, Harbor Life is not a scam. However, they’re not a licensed life settlement company. They just collect your data, then sell it to licensed life settlement companies. They appear to be a legitimate enterprise. However, they’re a brand new company with limited history online (founded in September 2017). And, you may be able to save money by working directly with a life settlement company instead of submitting information through a middleman like Life Harbor. Nevertheless, their website seems to offer easy and convenience access to a network of licensed life settlement providers.