Best Life Settlement Companies

Rebecca Parson
Rebecca Parson

Rebecca Parson

Author

Rebecca Parson is a financial and tech writer with 10 years of experience writing about topics such as life insurance, commodities investing, and the SaaS industry. She has a master’s degree from Johns Hopkins University and a bachelor’s degree from the University of Mary Washington. Her writing has appeared at money.com, sacbee.com, cart.com, herodevs.com, blanchardgold.com, and more.

Brian OConnel
Brian OConnel

Brian O'Connel

Contributor

Brian O’Connell has been a contributing writer for U.S News & World Report since 2016. A former Wall Street bond trader and the author of two best-selling books; “The 401k Millionaire” and “CNBC’s Creating Wealth”, he has 20 years experience covering business news and trends, particularly in the business and financial sectors. He believes education is the best gift a financial consumer can receive – and brings that philosophy to every story he writes. His byline has appeared in dozens of top-tier national business publications, including CBS News, Bloomberg, Time, MSN Money, The Wall Street Journal, CNBC, TheStreet.com, Yahoo Finance, CBS Marketwatch, and many more.

By Rebecca Parson, Brian O'Connel
Author, Contributor, Life Insurance

If you’ve searched for “best life settlement companies,” you likely found yourself overwhelmed by the sheer number of options. To simplify your decision-making process, we’ve curated a comprehensive list of top-rated life settlement companies in America.

Every day, seniors that no longer need their life insurance policy let their policies lapse. Many don’t know anything about life settlements. Beca Life is here to educate seniors on what life settlements are and explain what the process entails.

We understand that selling a life insurance policy can be complex and emotional, so we are committed to providing support and guidance. Selecting the best life settlement company to represent you and your interests can make all the difference in the value of your life settlement.

Related Read: Life Settlements: How To Sell Your Life Insurance Policy (2024 Guide)

To be clear, we are about to publicly endorse some of our competitors.

Why are we doing this?

First and foremost, we believe you deserve to understand your options as this is an important life decision.

Beca Life is here to educate seniors on what life settlements are and explain what the process entails. We’re here to help you understand all your options when it comes to selling your life insurance policy. Even if that means you decide to work with someone else.

While we would strongly encourage you to reach out to us first, we understand the importance of personal choice. Our goal is to arm you with the knowledge that you need to make an informed decision.

Here are some of the best life settlement companies in America:

Top 10 Life Settlement Companies:

  1. Coventry Direct
  2. Abacus Life
  3. LifeRoc Capital
  4. Magna Life Settlements
  5. Life Settlement Brokers
  6. Life Insurance Settlements Inc.
  7. Harbor Life Settlements
  8. Settlement Benefits Association (SBA)
  9. Welcome Funds
  10. Hedge Funds That Invest in Life Settlements

Understanding the Difference Between Buyers, Brokers and Hedge Funds

There are many companies that buy life insurance policies, each specializing in different types of policies. For example, one may focus on buying life insurance policies on relatively healthy people while another focuses primarily on insured with compromised health in a transaction known as a viatical settlement. Others buy large groups of policies only on the tertiary market, meaning policyholders can’t sell directly to them.

Here are the three different types of companies that buy life insurance policies, each with a distinct role in the life settlement market:

Life Settlement Buyers

  • Life settlement buyers, also known as life settlement providers, are entities that buy life insurance policies from policyholders for a lump sum payment. The buyer takes responsibility for future premium payments and collects the death benefit when the insured person dies. Often, buyers sell these policies on the tertiary market to large investors and hedge funds. Their financial incentive is to buy your policy for as little as possible to maximize their profit.

Life Settlement Brokers

  • Life settlement brokers represent policyholders in the process of selling their life insurance policies, working to find the best offers from various life settlement buyers. Brokers negotiate the highest possible payout for the policyholder because they receive a commission of the final sale amount. They have a fiduciary responsibility to the seller, and while they do take a commission, the net amount the seller receives is often higher than selling directly to a buyer.

Hedge Funds

  • Hedge funds pool capital from accredited or institutional investors and use various strategies to earn returns on that money with as little risk as possible. Some hedge funds invest in life settlements by buying batches of life insurance policies on the tertiary market. They don’t review individual policies; instead, they buy large bundles of policies from companies like Coventry and Abacus at a high markup.

Buyers purchase policies as investments, seeking to acquire them at the lowest possible cost to maximize their returns. Some buyers advertise directly to consumers, aiming to secure policies with below-market bids. Often, sellers accept these offers if they exceed the cash surrender value of their policy, unaware that they might receive a higher payout through a broker or by contacting multiple buyers.

At Beca Life, we take a different approach. We work with both buyers and brokers, tailoring our services to meet each client’s unique needs and goals. Whether you seek the highest possible offer or a quick sale, we help you get the best deal possible. 

With that in mind, let’s explore some of the biggest players in the life settlement market, starting with the buyers.

Life Settlement Buyers

A life settlement buyer, also known as a life settlement provider, is an entity that buys life insurance policies from policyholders for a lump sum payment. The buyer takes responsibility for future premium payments and collects the death benefit when the insured person dies. Often, buyers sell these policies on the tertiary market to large investors and hedge funds. 

A buyer’s financial incentive is to buy your policy for as little as possible so they can collect the highest possible profit when the policyholder dies or when they sell the policy to an investor.

Coventry Direct

Coventry Direct is the largest buyer in the U.S., handling over 45% of life settlement transactions in 2021. Unlike brokers, Coventry is a direct buyer, meaning they purchase policies themselves without shopping around for the best deal for you. This approach can result in lower initial offers but allows for a faster closing process, often within a week. Coventry is not required to share your medical records and life expectancy reports that they ordered. This makes it a little harder and more time-consuming for the seller to obtain those records and life expectancy reports to present to other buyers and possibly get a better offer.

Coventry spends heavily on marketing to reach a large number of potential sellers and has its purchasing process down pat. Their marketing budget includes advertising on satellite radion, cable TV and PPC to reach seniors looking to sell their policy. If speed is your priority, Coventry might be a good choice, but make sure to get multiple offers before going to Coventry. This will help you get the highest possible offer.

Abacus Life

Abacus Life was founded in 2004 and went public in 2023 through a merger with a shell corporation owned by the owner of the Buffalo Bills. The company buys policies directly from policyholders and then manages those policies by trading, holding, or servicing them. Recently Abacus has focused on advertising on satellite radio and TV ads featuring Jay Jackson – the current CEO of Abacus Life. According to an Abacus press release, the company has a 26% market share.

Abacus Life also has an excellent life settlement calculator that gives you a rough estimate of what your policy is worth. Unlike other calculators, they offer an estimate for a range of health conditions from very healthy to terminally ill. 

LifeRoc Capital

LifeRoc Capitol specializes in connecting financial advisors with buyers of life insurance policies. According to a press release, it serves the “high net worth and ultra-high net worth markets.” Most policies over $2 million are sold with the help of a financial advisor, which is the market LifeRoc is tapping into. If you’re interested in LifeRoc and have a policy with a face value over $2 million, it may be worth asking your financial advisor about the company.

Magna Life Settlements

Magna Life Settlements is a direct buyer with a relatively substantial online presence compared to its competitors, including several white papers and a blog. It’s owned by Obra Capital (formerly Vida Capital), a hedge fund that also owns a life insurance company, allowing it to profit from both sides of the life insurance market.

Life Settlement Brokers

Life settlement brokers represent policyholders in the process of selling their life insurance policies, working to find the best offers from various life settlement buyers. 

Brokers’ financial incentive is to negotiate the highest possible payout for the policyholder because they receive a commission of the final sale amount.

Life Settlement Brokers have a fiduciary responsibility to the seller of the life insurance policy and while they do often take a nice commission, the net amount the seller receives is very often hire than selling the policy directly to a buyer.

Life Insurance Settlements Inc.

LIS, or Life Insurance Settlements Inc. was founded in 1993 and is a broker focused on financial advisors who want to help their clients get life settlements. Its managing director sits on the Board of Directors of the Life Insurance Settlement Association (LISA). They have many brokers with them and good relationships with many financial advisors throughout the country. LIS is also actively involved in updating state regulations and educating the public about life settlements.

Harbor Life Settlements

Harbor Life Settlements is a broker that buys life insurance policies with a death benefit of at least $100,000 in face value. The CEO has stated that his brokerage, which operates a life settlement auction site, gets an average commission of “22% of the amount of a life settlement payment.” This lower than the 30% many state regulatory bodies allow life settlement brokers to charge sellers. 

Settlement Benefits Association (SBA)

Founded in 2002, SBA is a life settlement broker with an extensive resources section on its website, including a blog and guides on using life settlements for charitable giving. There isn’t much information online about SBA, but they do work with financial advisors and directly with sellers looking to sell their policies. They have a life settlement calculator that gives you a rough estimate as to what you can expect to receive if you sell her policy. 

Welcome Funds

Welcome Funds is a broker founded in 2000 that serves policyholders and advisors. Its founder, John Welcome, is a board member of LISA and also owns companies that provide services related to life settlement securities and institutional trading. Welcome Funds is very well respected by life settlement providers and is the gold standard for brokering life settlements. 

Hedge Funds That Invest in Life Settlements

Hedge funds pool capital from accredited or institutional investors and use various strategies to earn returns on that money with as little risk as possible. Some hedge funds implement strategies and diversify some of their holdings into alternative assets to lower the risk of a down market. One strategy is life settlement investing, in which hedge funds deploy hundreds of millions of dollars of client money to buy batches of life insurance policies on the tertiary market. 

Hedge funds don’t review individual life insurance policies. Instead, companies like Coventry and Abacus will buy hundreds of policies from direct advertising and batch them together to sell at a high markup to the big hedge funds. 

BlackRock

BlackRock is a global hedge fund with $10 trillion of assets under management, including stocks, bonds, and alternative investments. Purchasing bundled life insurance policies lets it generate steady returns that are non-correlated with the broader market, which reduces overall portfolio risk. While individual policyholders can’t sell to BlackRock, it’s worth knowing that if you sell your policy, a hedge fund like BlackRock may end up owning it.

Apollo

Apollo Global Management is a prominent hedge fund that invests in various asset classes, including life settlements. Known for seeking high returns and diversification, it uses alternative investments to manage and grow client assets. Apollo has run into controversy recently regarding allegations that it set up sham shell companies to acquire illegal life insurance policies.

Sell your life insurance policy for cash.

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