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A life settlement broker is a state-licensed fiduciary exclusively representing the policyowner in selling an unwanted life insurance policy.
The buyers are called providers. They are licensed to purchase policies, and they buy for their own account or for the funds behind them. Providers owe the seller no fiduciary duty. Dozens of them are buying at any given time.
At no time do policyowners pay fees up front for consultations or services. There is no fee to ask what a policy is worth, no fee for underwriting, and no fee if the policy doesn’t sell. Windsor only earns a commission when a case closes.
There are no hidden fees.
Windsor’s commission runs between 1% and 15% of the final sale price. On larger policies, it does not typically exceed 5%. No two commissions are the same, and where a policy lands depends on its size and its complexity. Some cases are more costly to present to buyers than others.
Every commission is negotiable and agreed in writing before the policy goes to market, so a policyowner knows the cost before a single buyer sees the file.
Nothing about the policy changed in between. Only the number of buyers looking at it.
A provider making the only offer on a policy has no reason to bid against itself. The number it opens with is the number it expects to pay. On this file that number was $260,000, which is 26.0% of the policy's face amount.
Windsor took the same policy to the market instead. Twenty-six offers came back over the following month.
| Day | Time | Offer |
|---|---|---|
| Day 1 | 8:00 a.m. | $260,000 |
| Day 6 | 8:00 a.m. | $261,000 |
| Day 7 | 3:00 p.m. | $263,000 |
| Day 7 | 4:35 p.m. | $264,000 |
| Day 8 | 8:45 a.m. | $266,000 |
| Day 8 | 11:45 a.m. | $267,000 |
| Day 11 | 8:30 a.m. | $271,000 |
| Day 11 | 3:50 p.m. | $286,000 |
| Day 12 | 8:30 a.m. | $289,000 |
| Day 12 | 11:15 a.m. | $291,000 |
| Day 12 | 1:40 p.m. | $293,000 |
| Day 12 | 3:30 p.m. | $295,000 |
| Day 12 | 4:30 p.m. | $297,000 |
| Day 13 | 11:10 a.m. | $300,000 |
| Day 15 | 8:00 a.m. | $314,000 |
| Day 15 | 10:15 a.m. | $316,000 |
| Day 15 | 2:20 p.m. | $329,000 |
| Day 19 | 3:00 p.m. | $330,000 |
| Day 20 | 8:30 a.m. | $331,000 |
| Day 20 | 9:30 a.m. | $336,000 |
| Day 20 | 10:15 a.m. | $338,000 |
| Day 20 | 3:30 p.m. | $339,000 |
| Day 20 | 12:30 p.m. | $341,000 |
| Day 26 | 10:30 a.m. | $343,000 |
| Day 32 | 1:00 p.m. | $344,000 |
| Day 32 | 2:45 p.m. | $347,000 |
That is what a competitive process looks like from the seller's side. Buyers respond to each other, not to the policyowner, and the number moves on its own.
A policy of this size carries a Windsor commission of no more than 5%.
Competition added $87,000. The commission cost $17,350. A commission that buys nothing is expensive at any rate. This one returned five times what it cost.
This file is not an outlier in the number of bids it drew. It is the average. Windsor is a broker, does not buy policies, and is paid only when a case closes.
No cost, no obligation, and no fee unless a policy sells.
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