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2007
AIM
Senior Life Settlement
Survey Results
Get PDF of survey
The 2007 AIM Life Settlement survey was conducted to
better understand the opinions of Financial Advisors towards the
industry, their approach to the business, and to gather data for a more
effective life settlement training system.
Perhaps the study’s most significant finding is the wide disparity
between the perceived responsibility to discuss life settlements and the
actual level of participation.
As the life insurance settlement industry continues to evolve, it has
reached a point where the majority of Advisors have a positive view of
the industry and overwhelmingly consider the appropriate discussion of
life settlements to be a part of their fiduciary responsibility. Yet,
given these points, only 18% rate their life settlement knowledge level
as strong, with 46% indicating that they have clients who have lapsed a
life insurance policy without seeking a life settlement quote.
Training approaches: Based on survey rankings, Advisors who are
active in the life settlement market-place gained their knowledge from
industry publications, life settlement companies, websites, and eventual
hands on experience. Going forward, the most desired methods for
training are from printed materials, then from websites,
email/newsletters and webinars.
New business acquisition: By far, Advisors who are closing life
settlement cases credit their success to their current book of business
and their ability to solicit referrals. Eighty percent view
referrals as highly important. Other key sources for finding prospects
are trade shows, seminars and direct mail.
Commissions: A better understanding of life settlement commission
programs is needed, as 66% stating that their knowledge level was
poor.
Factors for selecting a life settlement company: When it comes to
choosing a life settlement company several factors are ranked important
to the selection process, with the most important being regulatory and
license compliance. Other results vary by the level of experience.
Advisors new to life settlements initially seek companies who deliver
training and support. Experienced advisors seek maximum funding exposure.
Methodology: Responses were solicited from over 8400
professionals and provide a cross-section of insurance, financial and
legal viewpoints. Over 300 responses were received.
The next step: Future training materials will be created to
reflect this surveys findings. As with any evolving product offering,
like life settlements, it takes time for producers to gain the practical
knowledge and experience to become effective. Those who desire initial
training or further education only need to reach out to find assistance
by contacting our office.
Senior Life Settlement Background: A Life Insurance policy, once
considered a future benefit, is now a living asset just like real
estate, stocks and other valuable investments. As with all assets,
understanding a Life Insurance policy’s fair market value is essential
to making accurate financial decisions. We recommend obtaining a simple,
free, and non-binding Life Settlement quote before deciding to: 1)
retain a policy, 2) cash-out of a policy, 3) lapse a policy, or 4) seek
other financial / insurance options.
A Life Insurance Settlement allows a policy owner, business or charity
to sell an undesired or unwanted life insurance policy for an amount
greater than the cash surrender value and less than the net death
benefit, often at 2-4 times the cash surrender value. The policy is
purchased by a licensed and institutionally backed funding source in an
auction-like environment referred to as the secondary life insurance
market. The most favorable conditions for receiving a life settlement
offer are on policies with face values over $250,000 (minimum $100,000),
an insured age of 65 or more, with a life expectancy between 2 and 15
years. Most policy types qualify - even some term life insurance
policies provided they have a conversion option to permanent coverage
For more information: 1-888-441-8881 or
info@aimsettlements.com
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Key Findings
n The majority of Advisors
have a positive view of the senior life settlement marketplace.
n Over the past 3 years the view of senior
life settlements has improved.
n 73% of Advisors feel that informing
appropriate clientele about life settlements is part of their fiduciary
responsibility.
n 46% of senior policies are lapsing
without seeking a life settlements quote.
n Only 18% of Advisors rate their life
settlement knowledge as strong.
n Only 19% state they have ever closed a
life settlement case.
n Advisors are targeting a staggering 3x
more life settlement activity in 2007 over 2006.
n Current knowledge base has been obtained
primarily from industry publications, life settlement companies and the
Internet.
n Advisors prefer more training in the form
of printed materials, webinars, email/newsletters and more.
n Overwhelmingly, life settlement
prospecting comes from current client base and referrals.
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2007 AIM Life
Settlement Survey
Results
| 1) Which title best
describes you? |
Insurance
Producer
Insurance Broker
Financial / Estate Planner
Senior Advisor
CPA
LTC
Professionals
Trust Officer
Attorney
Banker
|
25%
20%
17%
11%
10%
9%
4%
3%
1%
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2) What is your general
view of the senior life settlement marketplace? |
Positive
Indifferent
Negative |
52%
39%
8% |
3) How has
your view of the senior life settlement marketplace changed over
the past 3 years? |
Improved
No change
Declined |
44%
49%
7% |
4) Have you ever participated in the closing of a life
settlement case? |
Yes
No |
19%
81% |
5) If yes, how many life settlement cases will you close in 2006?
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| Average # by Producer |
2.6 |
6) How many life settlement cases do you expect to close in 2007?
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| Average # by Producer |
8.4 |
7) In the past 2 years, have any of your clients - over the age of 60 -
canceled or lapsed a life insurance policy, without seeking a life
settlement appraisal? |
Yes
No |
46%
54% |
8) In your opinion, is it part of an advisor’s fiduciary responsibility
- where appropriate - to inform clients about a life settlement?
|
Yes
Uncertain
No |
73%
24%
4% |
9) How do you rate your knowledge of the life settlement process?
|
Strong
Fair
Poor |
18%
51%
31% |
10) How did you acquire your knowledge of life settlements?
Respondents were asked to
check all that apply |
Industry publications
Life Settlement companies
Internet
Hands on experience
Word of mouth
Training sessions |
50%
41%
23%
19%
19%
19% |
11) Were you to receive training and/or marketing support in life
settlements, which medium would you prefer?
Respondents were asked to
check all that apply |
Print marketing materials
Webinars
Training seminars
Email / newsletters
Websites
Video presentations
Customizable materials
Audio presentations
Telephone training |
44%
33%
33%
33%
31%
27%
17%
15%
10% |
12) Besides a periodic review of your current clientele, what are the
most important means for identifying and prospecting to life settlement
candidates? |
n
Referrals
Highly Important
Somewhat Important
Not Important
n Trade shows
Highly Important
Somewhat Important
Not Important
n Seminars
Highly Important
Somewhat Important
Not Important
n Direct Mail
Highly Important
Somewhat Important
Not Important
n Website
Highly Important
Somewhat Important
Not Important
n Print advertising
Highly Important
Somewhat Important
Not Important
n Telemarketing
Highly Important
Somewhat Important
Not Important
n Radio
Highly Important
Somewhat Important
Not Important |
80%
15%
5%18%
52%
29%
12%
45%
43%
12%
43%
45%
9%
34%
56%
8%
40%
52%
5%
25%
70%
2%
31%
68% |
13) Commissions are available from a number of areas related to the life
settlement process. How do you rate your knowledge of life settlement
commission opportunities? |
Strong
Fair
Poor |
13%
30%
57% |
14) Rate these factors as they pertain to the selection process of a
life settlement company |
n Regulatory and state
licensure
compliance.
Highly Important
Somewhat Important
Not Important |
91%
8%
1% |
n Ease of application. Thorough
and expeditious case processing.
Highly Important
Somewhat Important
Not Important |
80%
19%
1% |
n Personalized service level of
individual representative.
Highly Important
Somewhat Important
Not Important |
76%
23%
1% |
n Ability to expose cases to the
widest body of qualified funders. (This item is
#1 among Advisors active in life settlements)
Highly Important
Somewhat Important
Not Important |
59%
39%
1% |
n Company's marketing support
and
training.
Highly Important
Somewhat Important
Not Important |
54%
42%
4% |
nYears of service in the life settlement industry.
Highly Important
Somewhat Important
Not Important |
51%
47%
3% |
n Resources to deliver highest
settlement amount
Highly Important
Somewhat Important
Not Important |
47%
46%
7% |
n Commission / fee structure.
Highly Important
Somewhat Important
Not Important |
47%
46%
7% |
Get PDF of
survey
We wish to thank all participants in the 2007 Life Settlement
Survey. Responses will go along way to promote education and
growth in the industry.
AIM Life Settlements is a life settlement broker located in
Chicago, IL. An active member of the Life Insurance Settlement
Association. AIM Life Settlements provides simple, free and
non-binding life settlement offers to clients and advisors.
1-888-441-8881 info@aimsettlements.com |
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