Veris Settlement Partners Inc. is working with a lead-generating firm to offer a new life insurance settlement program aimed at owners of small policies.
Veris, Rockville, Md., has formed a joint venture with Life Settlement Leads Inc., Parsippany, N.J., to set up a simplified process for buying and selling life policies with face amounts from $100,000 to $500,000. LSL, which supplies lead-generation services to institutional life settlement funding sources, will provide direct access to funding sources for the program, Veris says.
Traditionally, the time and cost of completing a settlement have limited opportunities for the owners of life policies with face amounts below $500,000 to sell the policies, says Veris, a life settlement brokerage founded by Select Life Settlement Corp., Northport, N.Y., and Chesapeake Financial Settlements L.L.C., Rockville, Md.
LSL is supplying technology that will make it easier for institutional buyers and providers to evaluate small policies, Veris says.
The evaluation process will include a simplified telephone interview of the insured, eliminating the cost and time needed to acquire medical records before underwriting and to obtain third party life-expectancy reports, Veris says.
LSL has worked with life settlement providers to create simplified closing documents and plans to use third-party professionals to relieve producers of the task of completing paperwork, Veris says.
Veris says it is seeking convertible term life and universal life policies for the program. The insured should be a male over age 70 or a female over age 75, with a life expectancy of 3 to 9 years. In addition, carriers must carry an A.M. Best rating no lower than B plus plus.