The sale of a life insurance policy is a negotiated arrangement and the transfer of the plan must advantage both parties. The seller realizes an immediate gain as the buyer postpones their gain, therefore the keeping time of the investment is an important metric to the trader. During the due diligence stage of the deal, detailed information regarding the insured is gathered including current age group, health conditions or chronic health problems and lifestyle and perhaps the insured’s genealogy. Because the having costs of the investment is significant, the longer enough time the investment is kept, the lower the entire return.
The elegance of life insurance compared to other investment vehicles like securitized mortgages, securitized household debt, corporate bonds, stocks and shares and other investments will all come into play. Since life settlements are still a “specialty niche investment” a general discontent or more degree of risk with more traditional investments may fuel greater curiosity about life settlements by the investing community.
The characteristic of the individual policy, like death benefit, type of time and policy the plan has been kept are also considered and graded by the investing community. Since the carrying cost of the investment are significant and include: brokerage fees , costs for homework, paying premiums to keep the policy in force the death benefit must be great enough to overcome these costs. 500,000.00 or more before they’ll consider buying the policy.
Finally the relationship and trust the buyer places in the broker can make all the difference in the world when comparing one life arrangement investment to some other. The investor is counting on the broker to provide truthful information on all aspects of the covered and their policy. For the proverbial “win – win” to occur, each party must disclose all relevant information and if this will not happen, there may be liability or at least a damaged relationship as a result . The reputation and connection with the life settlement broker should be vitally important to the individual offering because that broker’s “rolodex” or connections is what makes the sale happen. A slim “rolodex” could indicate few or non-existent offers for his or her customer. Advanced Settlements in Orlando Fl.
Motivated by bonuses, bank staff attempted to convince customers that products like Payment Protection Insurance fulfilled genuine needs. So much for ‘Customer Service’. There’s a clear demand for a customer-centric business model, but few banking institutions appear to be working to meet this demand effectively. When used properly, ‘new media’ can create genuine conversations with their customers and, as that famous book ‘The Cluetrain Manifesto’ puts it, “the marketplace becomes a conversation”. Instead of their services being defined by what the bank wants to offer, they can be defined with what the customers need. The ‘bank or investment company to customer’ polarity is reversed and the customer becomes the market-maker of the future.
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- 03-07-2019, 10:31 PM #106
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It all boils down to the culture of the banks themselves. In the current globalised and commoditised world there is always ‘choice’ but retail banks have sidestepped this progression because of customer inertia. The general perception is that it’s way too much hassle to improve your money – and if you then your next bank or investment company you move to will be no better.
This has led to a culture of complacency among UK banks. They’ve been too big and too powerful for too long to be concerned too much what the client ACTUALLY thinks. But this will change. There are new competitors like Metro Bank or investment company, dedicated to a customer-centric model, that are changing the game and there is little question that the tipping point shall come soon. The bank that will win this battle shall be the one which changes its culture towards the agile, customer service centric ethos that is winning out in various sectors and industries across the global world.