Absence of Consumer Complaints Validates Safety of Life Settlement Transactions

by Darwin Bayston, CFA - President and CEO - Life Insurance Settlement Association | July 25, 2016 Leave a Comment

Absence of consumer complainst for LSA report earlier this month has provided additional evidence to support the case we’ve made in previous blog posts that the U.S. life settlement marketplace is a safe, ethical and regulated place for American seniors to sell an unwanted or unaffordable life insurance policy.

Donna Horowitz, senior editor of “The Life Settlements Report” published by The Deal, recently investigated consumer complaints filed with state regulators regarding life settlement transactions. Following her review of The National Association of Insurance Commissioners’ database and subsequent follow-up with individual state regulators, Horowitz reported that “there are only three consumer complaints” nationwide and “at least two of them don't involve life settlement market players.”

In fact, the one consumer complaint on record regarding life settlement transactions was the result of a sales agent who failed to follow the proper licensing requirements, paid a fine and was reinstated. This is a stunning track record of consumer service, especially in light of the surging number of life settlement transactions in the marketplace right now. Last month, The Deal reported there were 1,123 life settlement transactions in the U.S. in just the last year alone.

Contrast this extraordinary record of serving consumers with the data regarding the life insurance industry, for example. According to the National Association of Insurance Commissioner’s Consumer Information Resource, there are tens of thousands of consumer complaints on file, for reasons ranging from delays in claim handling to unsatisfactory policyholder service.

It’s important that American seniors – millions of whom are nervous about their retirement expenses and are searching for financial security to help them pay bills or just better enjoy their golden years – understand that a life settlement is an important option to consider as an alternative to lapsing or surrendering their life insurance policies. They should be encouraged by the life settlement industry’s strong track record of serving consumers and comforted by this latest illustration that life settlements are safe, legally sound and highly regulated transactions.

“The Life Settlements Report” is the only publication that produces articles exclusive to the life settlement industry.  For more information or to request a copy of the article, click here.