Although there are about 30 life settlement providers, knowing who to work with to sell your policy isn’t easy. You may be unsure of the process, not know the companies, or just feel better doing research on a company before transacting with them.
Unfortunately, there isn’t a lot of information out there — which is challenging if you want to sell your life insurance policy directly to a provider to avoid paying fees. That’s why we at Mason Finance tested, called, and researched to find the 5 best direct to consumer life settlement providers out there.
Below we’ve listed our top 5, in no particular order, as well as highlighted the areas each performed best.
Magna Life Settlements
- Clear and straightforward application process
- Checklist for paperwork and application process
- Instant estimate calculator
- Licensed to do business in all 50 states
One of the largest providers, Magna Life Settlements scored really high for the ease of their site and process. Their homepage features an easy to use calculator to roughly estimate your settlement’s worth (and your eligibility) in seconds. Additionally, their policy owner settlement page has a great checklist of paperwork needed, a 5 step breakdown of the process, and a downloadable application. The listed pre-approval wait time can be 5-7 days, which is average.
A big plus is Magna’s size allows them to established to do business in all 50 states. The downsides are despite having a streamlined process, it has a little less “brochure material” than other sites.It’s not the best place for someone unfamiliar with life settlements to do research. Magna may also not be the right fit for younger seniors, or those in good health. According to the calculator, individuals considering themselves “healthy” have to be at least 85 to be eligible for a settlement.
- Has downloadable forms by state
- Has a “Cancer Financial Assistance” consultation page
The smallest provider by volume on our list, Berkshire Settlements is an excellent provider for those who know what they want and are seeking specificity. The company is the only we’ve seen that has a link to state-specific application paperwork, which is very useful considering the rules and process can differ by state. Berkshire also features a consultation created specifically for those seeking a viatical settlement due to cancer.
While the site is clean, it does lack some features like an instant policy calculator, and their customer service number was less responsive than others we tried. However, this may be negligible for those who prefer to schedule a consultation and be contacted.
- Excellent customer service
- Established reputation
- Largest life settlement provider in the nation
If you’ve done any sort of research for life settlements, you’ve undoubtedly come across Coventry, as it’s currently the largest player in the life settlement space. However, despite handling large volume, Coventry maintains its personal touch, with the most responsive and helpful customer service we encountered in our research. Their number goes direct to an individual (not a machine operator), and there was no wait time in the several times we tried.
The one downside to Coventry is that their website is not super easy to navigate, and it took us a few tries from the homepage before actually getting to their pre-approval page. The site currently does not feature any direct applications – you need to fill out a pre-approval form and wait for them to contact you.
- Industry leader in speed
- Large purchase range
- Helpful and simple learning center
A growing player in the direct-to-consumer market, Abacus prides itself on providing some of the fastest offers in the industry – sometimes in as little as 24 hours. This by far the fastest pre-approval process we’ve seen, as the average time to hear back is 5-7 days and often takes more than a week. The site even features ‘Abacus Express’ for agents, streamlining the speed of their process across the board.
Another benefit of Abacus is it features a broad purchase range – most notably the purchasing of term policies – making them a great use case for those who might not have a universal life insurance policy. It also features a basic yet helpful learning center for those still new to the process.
- Easy to use calculator
- Large policy age range
Another smaller provider on our list, Q capital is great for a policy holder seeking simplicity. Their homepage clearly features a calculator, consultation options, email, and contact numbers in plain site. Their questionnaire for estimated eligibility is only 3 questions, and requires no information that’s not readily available. However keep in mind, the less questions asked upfront, the more likely the policy estimate will differ from the offer.
However the calculator does appear to qualify a much broader range of applications than most. For someone who considers themselves “healthy” Q capital’s calculator returns a positive qualification at 70 years old, as opposed to Magna’s 85. Setting up a consult from there only requires contact information, no medical questions. The main downside to Q capital is it’s currently not licensed in all 50 states.