Challenge to Improve Financial Health of Americans

Last updated on March 30, 2021 by Charles Mourani in Company News, Life Settlements, Retirement Planning

Mason finance selected for 2018 CFSI Fin Lab for life settlements product

We are thrilled to have been selected by the Center for Financial Services Innovation (CFSI) with founding partner JPMorgan Chase & Co. to be part of its 2018 class.

In joining the class, Mason Finance is receiving $250,000 in capital as well as access to networking and advisory opportunities. We are excited to leverage both the capital and network to continue building and scaling our efforts to better serve the retirement community.

The perfect partnership

CFSI’s mission is to improve the financial health of Americans, especially the underserved, by shaping a robust and innovative financial services marketplace with increased access to higher quality products and practices.

If you insert the word older in front of “Americans” you have the all core components of the Mason Finance mission. And while we don’t plan to steal CFSI’s wording verbatim, we can’t help but smile at what an awesome match we make.

We founded Mason Finance on the idea that access to the right information and excellent financial services has no retirement date. Everyone, regardless of age, deserves honest financial products that are designed for them. And in that vein, we couldn’t be more excited to usher in the FinTech revolution for older Americans!

We’re honored to join the ranks of CFSI members such as Wells Fargo, the AARP Foundation, Bank of America, PayPal, Nova Credit, and Visa. Spending just a little time with the other financial health members at the Emerge conference made it clear that we are in good company as we try to improve the financial lives of millions.

How FinTech can improve the lives of older Americans

The financial technology revolution has not been an equal opportunity progression. Millenials have benefitted from easier access to banking, traditional credit products, student loan refinancing, insurance products, and the list goes on. But what about Americans who are in retirement and desperately need to make their money work harder for them? Living longer is one of our greatest accomplishments, but millions of people aging in poverty threatens its legacy.

According to the Economic Policy Institute, nearly half (48%) of the elderly population in the United States is economically vulnerable, which is defined as having an income that is less than two times the poverty threshold. With this startling statistic on our minds, we have charted course to combine technology and financial services to create better products tailored to older Americans living on fixed incomes. We’ve started with a product that enables people to sell their life insurance policies for an up-front cash payment, formally called a life settlement.

Why start with life settlements?

Every year over 600,000 Americans aged 65 and older lapse an estimated $112 billion in life insurance policies that, when combined, have a fair market value of $22 billion dollars. The worst part of this monumental wealth loss is that the vast majority of people who lapse their life insurance policies do so because they can no longer afford their premiums. The exact people at risk of becoming financially insecure.

So why don’t people sell their policies instead of lapsing them? The biggest reason is awareness: 86% of people don’t know that selling a life insurance policy is an option. Beyond that, 3-6 month long transaction times and fees/commissions that often range in the tens of thousands of dollars drive this critical financial service out of reach for 98% of Americans.

A life settlement transaction can have up to 120 touchpoints and take up to 6 months. The process is cumbersome due to extensive paperwork, expensive due to broker and agent commissions, and non-transparent due to excessive intermediation.

At Mason Finance we streamline all the paperwork, buy policies directly (cutting out broker and agent commissions), and can make an offer in hours rather than months. We’re proud to say life settlements are finally available to everyone.

Thank you CFSI and J.P. Morgan Chase for believing in our team and our mission. We’re just getting started.


Felix, Charles, and the rest of Team Mason

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Charles Mourani
Charles Mourani is the chief technology officer of Mason Finance Inc. He holds an undergraduate degree in computer and communications engineering from the American University of Beirut and an MBA from Stanford University.

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