Start with the Close : Keys to a quick, confident closing. 

The closing process – in which all the details are addressed, funds are transferred, and the transaction is officially completed – has become the most important part of the life settlement transaction.  But all too often, closing considerations are ignored in the heat of the bidding process.  And as an increasing number of advisors can attest, there is nothing worse for you or your client than having a deal unravel in the closing stages.  This is where the choice of a life settlement provider often makes or breaks the deal.

When choosing a provider, there are two primary factors to consider.  The first: is the provider’s funding secure and available? This has become a critical concern as the funding limitations of some providers have caused deals to fall through.  Sometimes these providers have issued more life settlement offers than they can actually fund – much like airlines overbook flights – to ensure that their available capital is fully invested.  In other cases, the provider may not have the authority to complete the transaction with approval from the capital source, which can lead to delays or last minute rejections.  For these reasons, advisors should determine a) if the provider has sufficient capital to complete the offer, and b) do they have final authority to approve the case.  Only then can you know that the money will be there at the end of the transaction.

The second factor is the provider’s closing process.  Given the complexity of a life settlement transaction, the provider’s experience is the primary determinant of whether a transaction closes smoothly.  Every transaction is different – different policies, different owners, different carriers, different state regulations.  As a result, the closing requirements for each case are different as well.  Smaller providers simply don’t have the resources to stay on top of all of the details. As a result, much of the legwork can get pushed back onto the advisor.  At Coventry, for example, the opposite is true as a full team of contract specialists, attorneys and compliance officers manage the closing process.  They know the minutiae of state regulations and the idiosyncrasies of individual carriers.  And they have the resources to answer questions and help advisors (and clients) through the process.

In the end, the most valuable partner is one who gets the deal done smoothly and efficiently.  By asking a few key questions, advisors can be sure that they have such a partner on their side.