AIM Senior Life Settlement Survey Results
The AIM Life Settlement survey was conducted to better understand the opinions of Financial Advisors towards the
industry, their approach to the business, and to gather data for a more effective life settlement training
system.
Perhaps the study’s most significant finding is the wide disparity between the
perceived responsibility to discuss life settlements and the actual level of participation.
As the life insurance settlement industry continues to evolve, it has reached a point where the majority of
Advisors have a positive view of the industry and overwhelmingly consider the appropriate discussion of life
settlements to be a part of their fiduciary responsibility. Yet, given these points, only 18% rate their life
settlement knowledge level as strong, with 46% indicating that they have clients who have lapsed a life insurance
policy without seeking a life settlement quote.
Training approaches: Based on survey rankings, Advisors who are active in the life settlement
market-place gained their knowledge from industry publications, life settlement companies, websites, and eventual
hands on experience. Going forward, the most desired methods for training are from printed materials, then from
websites, email/newsletters and webinars.
New business acquisition: By far, Advisors who are closing life settlement cases credit their
success to their current book of business and their ability to solicit referrals. Eighty percent view referrals as
highly important. Other key sources for finding prospects are trade shows, seminars and direct mail.
Commissions: A better understanding of life settlement commission programs is needed,
as 66% stating that their knowledge level was poor.
Factors for selecting a life settlement company: When it comes to choosing a life settlement
company several factors are ranked important to the selection process, with the most important being regulatory and
license compliance. Other results vary by the level of experience. Advisors new to life settlements initially seek
companies who deliver training and support. Experienced advisors seek maximum
funding exposure.
Methodology: Responses were solicited from over 8400 professionals and provide a cross-section of
insurance, financial and legal viewpoints. Over 300 responses were received.
The next step: Future training materials will be created to reflect this surveys findings. As
with any evolving product offering, like life settlements, it takes time for producers to gain the practical
knowledge and experience to become effective. Those who desire initial training or further education only need to
reach out to find assistance by contacting our office.
Senior Life Settlement Background: A Life Insurance policy, once considered a future benefit, is
now a living asset just like real estate, stocks and other valuable investments. As with all assets, understanding
a Life Insurance policy’s fair market value is essential to making accurate financial decisions. We recommend
obtaining a simple, free, and non-binding Life Settlement quote before deciding to: 1) retain a policy, 2) cash-out
of a policy, 3) lapse a policy, or 4) seek other financial / insurance options.
A Life Insurance Settlement allows a policy owner, business or charity to sell an undesired or unwanted life
insurance policy for an amount greater than the cash surrender value and less than the net death benefit, often at
2-4 times the cash surrender value. The policy is purchased by a licensed and institutionally backed funding source
in an auction-like environment referred to as the secondary life insurance market. The most favorable conditions
for receiving a life settlement offer are on policies with face values over $250,000 (minimum $100,000), an insured
age of 65 or more, with a life expectancy between 2 and 15 years. Most policy types qualify - even some term life
insurance policies provided they have a conversion option to permanent coverage
For more information: 1-800-716-6171 or info@aimsettlements.com
AIM Life Settlement Survey Results
| 1) Which title best describes you? |
Insurance Producer
Insurance Broker
Financial / Estate Planner
Senior Advisor
CPA
LTC Professionals
Trust Officer
Attorney
Banker
|
25%
20%
17%
11%
10%
9%
4%
3%
1%
|
2) What is your general view of the senior life settlement marketplace? |
Positive
Indifferent
Negative |
52%
39%
8% |
3) How has your view of the senior life settlement marketplace changed over the past 3
years? |
Improved
No change
Declined |
44%
49%
7% |
4) Have you ever participated in the closing of a life settlement case? |
Yes
No |
19%
81% |
5) If yes, how many life settlement cases will you close in 2006? |
| Average # by Producer |
2.6 |
6) How many life settlement cases do you expect to close in 2007? |
| Average # by Producer |
8.4 |
7) In the past 2 years, have any of your clients - over the age of 60 - canceled or lapsed a life
insurance policy, without seeking a life settlement appraisal? |
Yes
No |
46%
54% |
8) In your opinion, is it part of an advisor’s fiduciary responsibility - where appropriate - to inform
clients about a life settlement? |
Yes
Uncertain
No |
73%
24%
4% |
9) How do you rate your knowledge of the life settlement process? |
Strong
Fair
Poor |
18%
51%
31% |
10) How did you acquire your knowledge of life settlements? Respondents
were asked to check all that apply |
Industry publications
Life Settlement companies
Internet
Hands on experience
Word of mouth
Training sessions |
50%
41%
23%
19%
19%
19% |
11) Were you to receive training and/or marketing support in life settlements, which medium would you
prefer?
Respondents were asked to check all that apply |
Print marketing materials
Webinars
Training seminars
Email / newsletters
Websites
Video presentations
Customizable materials
Audio presentations
Telephone training |
44%
33%
33%
33%
31%
27%
17%
15%
10% |
12) Besides a periodic review of your current clientele, what are the most important means for
identifying and prospecting to life settlement candidates? |
nReferrals
Highly Important
Somewhat Important
Not Important
n Trade shows
Highly Important
Somewhat Important
Not Important
n Seminars
Highly Important
Somewhat Important
Not Important
n Direct Mail
Highly Important
Somewhat Important
Not Important
n Website
Highly Important
Somewhat Important
Not Important
n Print advertising
Highly Important
Somewhat Important
Not Important
n Telemarketing
Highly Important
Somewhat Important
Not Important
n Radio
Highly Important
Somewhat Important
Not Important |
80%
15%
5%
18%
52%
29%
12%
45%
43%
12%
43%
45%
9%
34%
56%
8%
40%
52%
5%
25%
70%
2%
31%
68%
|
13) Commissions are available from a number of areas related to the life
settlement process. How do you rate your knowledge of life settlement commission
opportunities? |
Strong
Fair
Poor |
13%
30%
57% |
14) Rate these factors as they pertain to the selection process of a life settlement
company |
n Regulatory and state licensure
compliance.
Highly Important
Somewhat Important
Not Important |
91%
8%
1% |
|
n Ease of application. Thorough and expeditious case
processing.
Highly Important
Somewhat Important
Not Important
|
80%
19%
1% |
|
n Personalized service level of individual
representative.
Highly Important
Somewhat Important
Not Important
|
76%
23%
1% |
|
n Ability to expose cases to the widest body of qualified
funders. (This item is #1 among Advisors active in life
settlements)
Highly Important
Somewhat Important
Not Important
|
59%
39%
1% |
n Company's marketing support and
training.
Highly Important
Somewhat Important
Not Important |
54%
42%
4% |
n Years of service in the life settlement industry.
Highly Important
Somewhat Important
Not Important |
51%
47%
3% |
n Resources to deliver highest settlement amount
Highly
Important
Somewhat Important
Not Important |
47%
46%
7% |
n Commission / fee structure.
Highly
Important
Somewhat Important
Not Important |
47%
46%
7% |
We wish to thank all participants in the AIM Life Settlement Survey. Responses will go along way
to promote education and growth in the industry.
AIM Life Settlements is a life settlement broker located in Chicago, IL. AIM Life Settlements provides
simple, free and non-binding life settlement offers to clients and advisors.
1-800-716-6171 info@aimsettlements.com |
| 