Funding one’s retirement can be difficult, especially when one hasn’t been able to adequately saved or one’s savings have been wiped out by the financial crash in 2008. Those who have exhausted their options and are looking for a way to generate more funds to help them get through the years to come may want to consider what is called a life settlement. This is a transaction whereby one sells their life insurance policy for more than the surrender value, but less than the death benefit. Those who go through this process may find themselves having difficulty in finding the right company. Choosing the right option for one’s needs can enable individuals to feel confident and secure that they are making the right decision.
With that, this review would like to introduce Windsor Life Settlements, LLC. There are two types of settlement companies – those that purchase directly from the consumer and those that function as a broker. In this case, Windsor Life Settlements functions as the latter.
What Is Windsor Life Settlements?
Windsor Life Settlements is a life settlement broker – meaning it connects individuals who are interested in undergoing the transaction to investors and companies that purchase the life insurance policy. As a broker, the company not only helps individuals receive multiple offers, but it also may facilitate the process by helping with the paperwork, providing guidance, and much more.
Keep in mind that while a broker may be helpful, they certainly do earn a commission as well. The commission may be calculated in various ways and deducted from a particular value. It is best to discuss this issue upfront, rather than waiting so that one completely understands the implications of working with a broker.
Transparency Is Critical
Every company has a different approach to helping individuals through the life settlement process. When it comes to Windsor Life Settlements, the company mentions that “transparency is the most critical factor in successfully completing a life settlement transaction.” Those who go through the life settlement process with Windsor Life Settlements should expect that the company is transparent, open, and that it provides all the necessary information to make the right decisions every step of the way. Many companies are not transparent and those who find such a quality may want to look into the company as a potential option.
Additionally, not only is the company transparent concerning the process, but it also “applies to compensation as well.” According to the company, it receives compensation from the sale of a University Life policy. The amount the company receives is derived from a percentage of the final settlement price – that is, the amount that one receives as a life settlement. If the policy is a convertible term life policy, the compensation is derived from the final settlement amount or from the standard agent compensation that is paid by the insurance carrier to convert the policy. Those who are interested in learning more about the compensation process should discuss it with the company.
Transacts Both Life Settlements And Viatical Settlements
There are two type of life settlement policies that one may want to consider. When visiting settlement websites, individuals will encounter “viatical settlements” and “life settlements.” While some companies may use these terms interchangeably, they is actually a distinct difference. Dissimilar from a life settlement policy which can apply to anyone over the age of 65 and in any health condition, a viatical life settlement policy is particularly geared for those who have a terminal illness. Therefore, if one has a terminal illness, a life insurance policy in place, and is looking for quick funds with no other solution in place, then a viatical settlement may be appropriate.
Keep in mind that a viatical settlement is a serious decision and it should only be undertaken if there are no other options. This is because with a terminal illness, life expectancy tends to be short and the death benefit may become applicable quite quickly. Therefore, it is best to seriously consider whether the viatical settlement is the right option based on the specific circumstances.
Reasons To Sell A Life Insurance Policy
Windsor Settlements provides an abundance of information on its website, some of which includes the reasoning behind selling a life insurance policy. Here are a few reasons for selling a life insurance policy according to the company:
Eliminates The Expense Of Premium Payments
First, those who choose a life settlement may be able to eliminate the expense of premium payments. Premium payments can become a burden and failure to make them may cause the policy to lapse. Thus, those who are looking to receive a cash payment may want to consider a life settlement. The life settlement transfers the obligation to make the premium payments to the purchasing company.
The Policy Is No Longer Necessary
Second a life settlement is a good option if one no longer needs the life insurance policy. Every life insurance policy has beneficiaries and if they are able to handle any expenses or other financial obligations belonging to the deceased, then it may be best to go forward with the life settlement. Because a life settlement impacts many family members, it is best to discuss with everyone as to whether it is the right decision.
Funding Retirement And Paying For Other Expenses
Third, those who opt for a life settlement may be able to continue funding their retirement and pay for other expenses as well. Because the amount that one receives for their life insurance policy can vary from company to company and based on one’s individual circumstances, it is best to look at various options and to get multiple offers so that one can get the right value.
Clearly, there are many positive reasons for selling a life insurance policy. However, because selling a policy is such a major decision, it is best to do so when one is informed, has multiple offers to choose from, and after performing due diligence.
Confidentiality Considerations
Because one is transacting with a broker and not directly with a life settlement company, then it is important to verify the confidentiality of one’s information. The information given through the sale of the insurance policy will end up in the hands of a third party and understanding what the third party and the broker do with the information can be helpful in discerning whether the transaction is the right option.
In this case, Windsor Life Settlements states that it “has a strict confidentiality policy.” The company explains that it will not share information without one’s written permission and any written authorization forms will disclose who receives the information and the purpose of the release. Further, the company’s employees are trained in handing information correctly so that no unwanted disclosures take place.
It is important to realize that while Windsor Life Settlements may keep the information confidential and require disclosures, there is no indication as to what a third-party buyer will do. Thus, when transacting and providing information, individuals may want to discuss the disclosure of information and privacy standards with the buyer as well. Individuals may want to ask that additional conditions are added to the sales agreement to ensure that their interests are well protected.
Licensing And State-Specific Pages
Normally, prudent life settlement companies will have an entire page dedicated to their state licensing and compliance. While every state has its own requirements and regulations concerning life settlements, there are still companies that have not met the requirements. In this case, Windsor Life Settlements does not have one specific page describing its licensing and compliance standards. But rather, it has state-specific page and on those pages, it will indicate whether or not it is licensed.
For example, when it comes to Windsor Life Settlement Brokers in San Jose, the company mentions on its page that it has fully licensed brokers and its brokers are registered in the state to conduct business as well. Those who do not find a state-specific page for Windsor Life Settlements may want to discuss the issue with the company when contacting it.
Eligibility Requirements
Life settlement companies often have a set of requirements that individuals must meet to quality for a life settlement. The requirements often vary from company to company, therefore it is best to discuss the issue with the company that one is interested in. When it comes to Windsor Life Settlements, here is the eligibility criteria that it displays on its website so that individuals know what to expect:
- Age 70 and older
- Significant impairments to one’s health
- A life expectancy of 170 months or less
- A face amount of $250,000 and above
Those who view these requirements will notice that they are much tougher to meet than most other life settlement companies. For example, most life settlement companies often indicate that 65 is the starting age and that the face amount of the policy ranges from $50,000 to $100,000. These tougher requirements, including the impairments to one’s health, is due to the investor’s desire to benefit from the investment sooner rathe than later. For example, if one has significant impairments to their health, their life expectancy decreases and the death benefit may accrue quicker.
The Informal Inquiry Form
The first step to getting started with Windsor Life Settlements is to fill out the informal inquiry form. This form provides the company with preliminary information to gauge the value of the life settlement policy and to determine if the individual is eligible for the company to work well.
Those who are interested in filling out the form may receive a preliminary quote – but not an offer. The quote gives individuals insight as to whether the company may be able to provide one with the opportunity to go through the life settlement transaction. The form requires individuals to provide information such as the name of the insured, date of birth, social security, the issue date of the policy, the beneficiaries, coverage face amount, rate class, policy number, premium payments up to date, and a lot more.
The form is much more extensive than traditional forms on other companies’ websites. Therefore, those who do decide to go forward with this company should recognize that the form will be a time investment so that they should plan accordingly.
Windsor Life Settlement’s Role As A Broker
As previously mentioned, Windsor Life Settlements is a broker and not a direct buyer of life settlements. As a broker, the company has a number of obligations, which are as follows:
Connecting Individuals With Buyers
The main role that the company has is connecting individuals with buyers. This makes it easier for individuals to receive multiple offers and to choose a company that they are comfortable working with. In addition to connecting individuals with life settlement companies, it also does the same with viatical settlements. This way, individuals can get the full support that they need.
Keep Track Of Paperwork
Second, the company also keeps track of all of the paperwork involved in the life settlement process. The paperwork can be intense and difficult to handle, and having that extra guidance can be extremely helpful. The company will identify any issues with the paperwork, it will provide insight as to when the paperwork should be completed, and the like. As individuals can tell, the paperwork involved can be extensive so having the additional guidance can be helpful.
Reduce Mistakes And Other Issues
Third, those who use a broker such as Windsor Life Settlements can reduce the risk of mistakes that can delay the process and make it more difficult to receive a life settlement. Further, by reducing the amount of mistakes, individuals can go through the process in a less stressful manner.
Clearly, there are many positive reasons for choosing a settlement broker like Windsor Life Settlements. The company helps with the paperwork, it connects individuals with buyers, and it reduces mistakes as well.
Recent Policies Sold – Case Studies
Windsor Life Settlements also has a page concerning case studies that identify recent transactions that it has conducted. Keep in mind that the company does not mention whether the studies are simply examples or they actually reflect true transactions. However, if anything, they may provide insight as to what an individual can expect when going through the process. It is also important to keep in mind that the example only show a number of indicators when in reality, there are a number of factors that the company considers. Therefore, those who are actually interested in going forward and receiving an estimate should contact the company instead of viewing the studies.
An Informational Blog
Finally, the company also provides an extensive informational blog on its website. The blog discusses issues such as when it does not make sense to sell a life insurance policy, best places to retire, what to consider when selling a policy, and so forth. By having the additional information, individuals can safeguard their interests and ensure that they are making the right decision for their needs.
Further, the company has a very active social media presence. Therefore, individuals can always view the company’s social media accounts to view more about the company, to receive updates, and so much more.
Windsor Life Settlements Summary
Ultimately, a life settlement is a big decision and it requires a great deal of research, understanding concerning the implications of the transaction, and insight into whether it is the right option for the individual. Those who go through with the transaction should understand that they are depriving potential beneficiaries the benefits of the life insurance policy and that the value that is received from selling the policy is less than the death benefit. Additionally, it is recommended that individuals receive multiple offers from various companies and that they not be rushed through the process as well. Those who tread carefully and with due diligence stand to benefit the most.
