How does LSF price an offer in life settlement transactions?
The offering price is a combination of art and science. First, we determine if the prospective insured(s) is/are likely to be a good prospect for a life settlement. We evaluate each insured based upon initial database information including the size of the policy death benefit, annual premiums to be paid, insured’s age and type of policy. We obtain subjective additional information about the insured(s) health, living arrangements and activities of daily living (ADLs). This additional information saves everyone time and effort by not taking applications for policies that will not qualify. This is done with complete confidentiality. Second, after the application is taken and the insured’s medical information is obtained from their primary physician, we purchase three independent medical/actuarial underwriting opinions as to the estimated life expectancy (LE) of the insured. When LSF gets the three LE analyses back, we re-underwrite the case to confirm that the outside firms considered the
The offering price is a combination of art and science. First, we determine if the prospective insured(s) is/are likely to be a good prospect for a life settlement. We evaluate each insured based upon initial database information including the size of the policy death benefit, annual premiums to be paid, insured’s age and type of policy. We obtain subjective additional information about the insured(s) health, living arrangements and cognitive and functional impairments. This additional information saves everyone time and effort by not taking applications for policies that will not qualify. This is done with complete confidentiality. Second, after the application is taken and the insured’s medical information is obtained from their primary physician, we purchase three independent medical/actuarial underwriting opinions as to the estimated life expectancy (LE) of the insured. When LSF gets the three LE analyses back, we re-underwrite the case to confirm that the outside firms considered
